Yi Lihua, founder of Liquid Capital, said his takeaway after being in crypto since late 2015 is that effort alone is not enough and that choosing the right lane matters just as much. He said people who have generally done well tend to fall into three groups: those who accumulated BTC, ETH, and BNB or took part in mining-related activities such as mining pools; those involved in trading infrastructure, including quantitative arbitrage, exchanges, and stablecoins; and project teams or market makers engaged in asset issuance and control. By contrast, he said investors and futures traders as a whole fail more often than they succeed. He compared that model to hunting for food every day, describing it as a high-risk approach with limited compounding in returns.
According to BlockBeats, Liquid Capital founder Yi Lihua said on Sept. 8 that after more than a decade in crypto since entering the sector in late 2015, his conclusion is that effort is not the only factor and that choice is critical.
He said several types of participants have been able to achieve results in the sector.
- One group includes people who accumulated BTC, ETH, and BNB, as well as those involved in mining, coin accumulation, and mining pools. He described this path as one driven by returns compounded over time.
- Another group includes participants in trading infrastructure, such as quantitative arbitrage, trading platforms, and stablecoins.
- A third group consists of projects and market makers, or MM, which he described as businesses focused on issuing assets and controlling assets.
On investors and futures traders, Yi said the group overall sees more failures than successes. He said the model is like that of a hunter who has to go out every day to find food, with high risk and low compounding in returns.
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