Hello SPIer's. Today we look into fanboys, defi fanboys to precise and try to understood how they think, their impact on crypto as a whole and how us as savy investors can take advantage of them.
noun
a male fan, especially one who is obsessive about comics, music, movies, or investment.
verb
(of a male fan) behave in an obsessive or overexcited way.
"he fanboyed out and APED in on the news of an airdrop"
To get started, from my experience i have learnt that being a defi fanboy is a little bit like a cult and comparable to a religion. Humans by nature are tribal animals so we bunch together when accepted into a group/community/crypto scam. Let me tell you story, if you are walking down the street and see 1 guy in the middle of the road, blocking traffic and 100% focused on looking into directly above himself, you would think that guy was crazy but if there were a group of 50 people standing on the road looking into the sky, you might stop and look up yourself. The longer you stand, the harder it is to walk away because you've invested time and you would hate to miss the event after already investing time so you join the crazy people standing in the middle of road blocking traffic with your head in the air.
I have a vast experience with defi fanboys, i have been involved in alot of crypto defi and cefi projects, joined a bunch of telegram and discord servers over the past 3 years and see patterns in how the fanboy operates at a basic level. I have observed and even interacted with them, From what i have seen, 95% of them are broke plebs hoping for a get rich quick thing. They are the highest of risk to reward investors with many never getting past starting capital as they boom and bust repeatedly. They are always 100% bullish even when things are tanking, dont try to speak sense with the fanboy, your efforts are worthless because defi fanboys are single minded and can not be convinced because they know better. They have watched a few AMA's or there favorite youtube crypto shiller is shilling it and they get pumped and FOMO. The defi fanboy has little to no memory recall and they will jump from 1 project to the next and repeat the same process as they did on the previous project they lost their money on.
The impact the fanboy has on crypto is massive. Crypto fanboys add billions to the market. How many billions of dollars have been added to crypto from Elon Musk's tweets alone? Crypto fanboys as whole have a passive effect on the crypto markets and ecosystem as an asset class. Crypto fanboys are the ones that build or support legit projects. Sadly the defi fanboy does not really have a lot of money, you'll understand why by the end of paragraph. They are mostly end users of "free money" projects adding little to no real value other then enriching the projects operators. The only real value they add is slowing down the decline to defi token value to let others make a profit. Their investing style is make a large first investment and then compound till its worth nothing hence, they are normally always broke and all in. Being all in on any single investment is not a smart thing are something to boost about.
When you watch how they act during different stages of a project, from launch to being basically dead the pattern is aroundabout the same. I'll say one thing about defi fanboys, they are very good at networking and sharing new projects with each other as many jump from project to project. Its fairly easy to get indicators from defi fanboys when viewing the chats in telegram, discord or youtube videos. When you sieve through all the cringe chat about how bullish they are and how they cant wait to be rich, there is some info in there and feeling the chat room can help to decide how to take advantage. Below are a 3 basic translations from defi fanboy text to normal English to show buy, hold and sell signals during the launch, start of decline and death of the average crypto scam thing.
| FanBoy Text | English |
|---|---|
| I invested all my crypto into this and im compounding all of rewards | Invest 1% of your crypto net worth as a gamble. Cash out 100% of your rewards |
| Im buying the dip and view this as a long term investment | Dont buy the dip and continue to cash out your rewards |
| I believe in the team | Time to completely jump ship. At this point there will be better yielding projects out there. |
These are few basic translations, fanboys talking about quitting jobs and making amazing returns is a good signal that its a good time to get yourself in, in the beginning. Always invest through LP tokens from proper crypto like BTC, ETH, stables or gas tokens like ETH, BNB, POLY, DOT, etc. Never buy the defi token, if your required to, move on cause you'll lose money if you buy their token. When the project starts to dip because there is no buying demand for the token and many more tokens are being created each day, its a good time to do nothing and just collect rewards. When the fanboy starts to talk about it being a long term investment and backing the team, its a good time to pull your funds and move on.
The defi fanboy is a victim of great marketing and scammer project operators can create lots of demand by promising the moon, huge APY's and fantastic visions of the future. They all mostly trick people by being design to payout consistently high APYs while the investors actual investment declines by massive amounts. As an example, a drip defi project will promise to pay out say 1% per day in thte defi token for 1 year when you convert your real crypto into their defi token. You investment $500 and get 10 defi tokens. When the buzz dies down and people that have been compounding have grown their wallets big, people start to sell to lock in profits. If your a pleb and you go all in for $500 and its worth $4000 after 3 months, you would most likely take a little bit out and sell some. The selling demand soon overtakes the buying demand, the result is the defi token value drops slowly at first and then faster and faster as people dump the defi token because they see everyone else dumping the defi token. Soon the 10 tokens you paid $50 for each or worth $3 each but they are still pay out 1% per day in the drip defi token so they are doing what they promised but there's a big difference between 1% of $500 and 1% of $30. Built in token burns are pointless as they dont create any real buying demand and are another marketing ploy.
Most defi projects are sadly targeted toward broke people that are looking for a way out of financial hardship, just normal people that live paycheck to paycheck that are easily swayed given the option of maybe getting lucky and being able to get freedom of a job/life they hate. It's like the lotto a little bit, your sold a dream of hitting the jacktop and geetting FU money. You dont see rich people buying lotto tickets and you dont see rich investors investing in scammy defi projects. The marketing behind these projects and thought process of their tokenomics is pretty wicked (in an evil way), they are set up to fail and are not sustainable. These projects come in the form of farms, drip, pegged tokens or income packages. There are other types but most can placed with these 4 groups.
I used to feel sorry for some of the defi fanboys id chat with. They'd be talking about how they cant wait till the defi project moons and they might beable to actually buy a house for their family and have some security in their lives. Id just agree with them knowing they are too far gone and breaking down how its a scam in the server/chat room would result in a banning. I seen from watching people flipping out in chatrooms because there investment is down 95%, explain why its scam and getting banned. I see that when defi fanboys are confronted with logic, they go into defend mode, work together and call the logical commenter a hater while explaining some bullshit game charger thats coming soon. You cant convince a religious person that God is not real because they have unbreakable blind faith. You cant convince a defi fanboy that they are investing into shit that is designed to screw them over by selling a dream.
SPI has made decent money off the back of watching how fanboys operate. We made money on both CUB farms and EMP most recently. I know we took 5 figures from CUB farms and around 4 ETH from EMP. The strategy for CUB was invest only using BTC,ETH,STABLES and BNB. Convert all harvests from day 1 into BTC, ETH, STABLES or BNB to compound down into more LP tokens. When the APY drops to under 15-20%, pull LP tokens and unwrap back into BTC,ETH,STABLES and BNB. For EMP, put in 10 ETH, converted some harvest to BUSD and reinvested some. When is was underpeg, converted all rewards into BUSD. When it started to tank proper, worked out our break even point and set a target. It never recovered and i exited us with around 4 ETH in profit and maybe $4000 pulled out in BUSD. These profits are mostly off the back of fanboys that compound and slow down the selling pressure of the defi token.
Im a fanboy for BTC and HIVE. Im a passive investor for BTC and project operator on HIVE adding a little bit of value to some. You can not convince me that BTC will not be $1 million one day or that HIVE will ever die. I dont have much hope long term for the price of HIVE but i view HIVE mostly as a utility token to be used as a currency. In the real world, we earn $'snd we spend $'s. On HIVE, we earn HIVE and we should spend HIVE into other things like HE tokens, HIVE gaming or passively investing with a BeeSwap LP token are powerit up to earn inflation of near 3% while curating. HIVE is perfect money. Power up 10 HIVE and spend funds for free in 3 seconds to a username address you can remember. Im 90% sure that HIVE can perform alot more transaction per second when compared to visa or mastercard. It's perfect money.
Anyways, i guess we are all fanboys or girls in one way are an other. That's what i know about defi fanboys. Hope you enjoyed the post. Remember if you only invest proper cryptos and sell the reward token, its alot harder to lose.
Have a great day folks.
