OKX Buddies Episode 8 | In-Depth Conversation on Airdrops: The Way and the Art

By: blockbeats|2025/03/01 17:00:03
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Source: OKX

From Investment Banking to Web3? Entered the industry in 2017, played during the "DeFi Summer" in 2020, and unexpectedly discovered the airdrop track? Received multiple airdrop windfalls after just four years in the space?

How did the "Airdrop Master" Kui_gas achieve this? If you are also an airdrop enthusiast, this "Airdrop Bible" is a must-read —

Kui_gas believes that the core secret to airdrop success lies in "Gas Loss," that is, where is the Gas consumed? When dissected, it boils down to two points: 1. Whether the gas consumed increases weightage, and 2. Whether the gas consumed enhances on-chain reputation.

This is an "OKX Friends" series interview aimed at exploring the professional stories, industry insights, and lessons learned from KOLs with different backgrounds for the benefit of novice users. In this issue, the interviewee is
Mercy Mercy_okx. Welcome everyone to follow along~

Article Overview:

Chapter 1: Background: How did one get into airdrops and become an expert

Chapter 2: Core Airdrop Strategy: How to filter high-quality airdrop projects

Chapter 3: The Future of Airdrops

Chapter 4: Advice for Beginners: How to start airdropping from scratch

Chapter 5: Advice for OKX

Chapter 1: Background: How did one get into airdrops and become an expert

1, What was the turning point for entering the industry? Why is "Airdropping" a "gold mine"?

I have a background in finance, with a major in securities investment and management. I have worked in traditional finance in hedge trading and investment banking. I entered the cryptocurrency space in 2017 and during the "DeFi Summer" of 2020, I discovered the airdrop track opportunistically.

In fact, I knew about BTC in 2009 when it was not worth much. At that time, I even mined it with my laptop, but I didn't understand the technology well, mostly due to my low awareness and lack of understanding of the value of this new thing, so I missed out. I really started getting involved during the 2017 bull market, attracted by the meteoric rise. I wanted to make big money; that was my purest motivation at the time. After that, from 2018 to 2019, I gradually explored DeFi, such as protocols like MakerDAO, Compound, Uniswap, etc.

During the 2020 "DeFi Summer," I found that DeFi mining could be combined with airdrop farming, and the compounding effect was very noticeable!

It was during the Uni and Sushi token distribution events that I truly realized that airdrop farming was a viable strategy. So, I researched many protocols I believed in, including ENS and Paraswap. From that point on, I heavily invested in multiple wallets. Subsequently, ENS and Paraswap conducted airdrops. ENS airdrop rewards exceeded 100,000 RMB for a single wallet, while PSP airdrop rewards started at $10,000 for a single wallet. This was also the first significant windfall I received in this field, validating that airdrop profits were achievable—it felt like striking gold.

2, Why did you want to create and initiate 33DAO, and what was your initial intention? What impact has it had on you since its establishment?

33DAO is a collaborative, co-building, and sharing DAO organization, of which I am one of the initiators. It has been running for 4 years now, with 35 people distributed globally. We must hold weekly meetings, and everyone must participate. I calculated that in the past 4 years, 33DAO must have held no fewer than 200 weekly meetings.

The initial intention was simple—to gather a group of talented and thoughtful individuals together, to form a truly valuable community through regular communication, in-depth discussions, and the clash of viewpoints. At the same time, we are continuously engaging in external activities, such as tutorials, market insights, Space discussions, etc., to help our airdrop farming partners get started more quickly and better understand Web3.

Regarding the impact on myself since its establishment, I feel there are three main points: First, I believe the most direct impact is that I have met a group of amazing individuals, and everyone has achieved great results through this platform. These members motivate and influence each other, enhancing their understanding and eventually turning it into tangible results. I think this is a great process.

For example, during the recent Chinese New Year, when the Trump token was launched, within the first ten minutes, a member shared some information. Initially, everyone thought it was a scam. However, through collaborative data analysis among members, the information was confirmed to be true. Consequently, everyone took positions in the shortest time possible. I remember the price was around $0.5-1 at that time. In about two days, it increased by approximately 100 times. In the end, many people achieved extraordinary results. Unfortunately, I was overseas at the time and did not invest enough, which was a painful missed opportunity! At the same time, I have a deep understanding of the importance of being part of a close-knit community and the significance of interacting with the right people.

Second, the existence of 33DAO constantly drives me to produce content. It means that I need to continue researching and sharing insights. Many of these understandings are not innate but evolve through continuous learning, deep thinking, and discussions with community members. This mechanism of self-improvement through constant content creation has had a significant impact on me. For example, many projects we once focused on, such as ARB and Strk, provided great results as people in the community exchanged ideas and motivated each other during bear markets.

Finally, the accumulation of resources and connections. 33DAO has given us the opportunity to directly engage with top overseas projects, many of which were first discovered through the community's collective efforts. Through various project interactions, we gain a broader perspective, and the close interaction among members enhances cohesion, making it feel like grassroots truly integrating into the Web3 ecosystem.

Chapter 2: The Core Strategy of Rug Pulling: How to Screen Quality Airdrop Projects

1 How do you screen for quality airdrop projects? What are the key metrics you pay most attention to? (Such as team background, tokenomics, community activity, etc.)

Key metrics to focus on for quality projects: Sector, funding background, ecosystem layout, team background, on-chain data, technological innovation points, and of course, marketing ability, event organization ability, ecosystem development ability. When analyzing and screening projects, I personally focus on the project's risk-reward ratio, probability, and cost. I believe this is a highly complex process, and each step is a practical methodology I have summarized over the years.

1. Categorize the Sector, Focus on Mainstream

There are only a few major sectors, and with enough exposure, you can naturally differentiate them. Start by going through the mainstream sectors to establish basic knowledge, such as L1/L2, ZK DeFi, LSD, Restaking, BTCFi, Move language, etc. I usually rank projects within the ecosystem, then individually analyze the risk-reward ratio and probability.

2. Look for Highlights and Protocol Technological Innovations/Features.

After going through a lot of content, I focus on what the project's core advantages are. How is it different from competitors in the same sector? If you have time, you can read the whitepaper and official documents, but initially, I recommend developing an understanding of the sector. Once you see a project, you should quickly judge what it does and then dive deeper. One that left a deep impression on me is Mavrick ... on ZKSync, with high APR, I discovered a huge opportunity.

3. Pay Attention to Institutions, Investors, and a Multi-Dimensional View

Projects backed by institutions have higher credibility, especially star-studded ones that are less likely to exit scam and have a higher ceiling for growth. Institutional funding and investors, seen from the VC perspective. With institutions already doing the filtering, ordinary projects are effectively screened out, increasing the success rate. Personally, I prefer to keep an eye on institutions I admire, such as Hack VC.

Core idea: First look at the sector, quickly assess positioning, then look at the project highlights, and finally consider institutional investment, find the project's alpha, analyze the project's marketing approach, especially with a project perspective. Explore from multiple angles and dimensions.

I have turned this process into a real-life blind date self-introduction process. What do you do, what does your family do, do you have money, a house, a car, a job, etc.? In short, why should I invest in this project needs to be very clear.

2. Project teams usually use technical means to identify a Sybil attack. In a situation where you are not identified as conducting a "Sybil attack," how do you reasonably use a multi-account strategy?

This is a good question. Due to time constraints, I will try to be as comprehensive as possible.

1. Let's first talk about what a Sybil attack is: An individual or group creates a large number of accounts to manipulate the network, protocol, or resource allocation through deceptive actions. This often involves batch operations, programmatic actions, robotic operations, etc.

2. What the project team thinks and does: The project team and ecosystem hope for real users to participate in the network, and rewards are also intended for real users. The project team will use on-chain data analysis, address correlation, behavior pattern detection, and other technical means to identify, with a typical example being Nansen's AI cluster analysis.

3. The essence of a Sybil attack: Not every use of multiple accounts constitutes a Sybil attack. It is the bulk creation of non-contributing spam accounts that abuse the rules to receive airdrops that defines a Sybil attack. The core of the project team's Sybil attack detection is "decentralization and de-batching of accounts."

4. Answering your question: How to reasonably use a multi-account strategy?

My view is: Create "boutique accounts," where each account is "independent + authentic." Classic examples of this include the recent Pengu and past Tia cases with individual addresses holding between $500 to $2000. Boutique accounts refer to high-quality accounts, each with a genuine user's on-chain records, independent behavior, and a reasonable on-chain asset distribution. Multiple accounts also follow the principle of risk diversification. Having multiple accounts does not equate to conducting a Sybil attack; instead, a multi-account strategy is simply a statistical principle, a broad coverage principle where having multiple accounts may offer better odds of profit than a single account.

Specific approach:

Initial Phase - Basic Principles:

1. Ensure reasonable fund circulation, striving for differentiation from the start, including fund sources.

2. Ensure reasonable fund circulation, avoiding centralized deposits and withdrawals.

3. Randomize interaction time and amounts to avoid mechanical operations.

4. Utilize multiple chains, making the account appear more natural through traces of real user activity.

Account Farming Interaction Phase:

1. Non-batch operation, each account has independent behavior

2. Interaction timing, avoiding assembly line operation, such as randomizing amount during interaction, transaction order, and combining multiple types of protocols

3. Multi-chain layout, making the account more natural, with interaction paths as independent as possible

4. Creating high-quality user profiles and behaviors, holding different assets to increase account weight

5. Participating in real activities to increase account weight. Examples include DAO voting, NFT Minting, and DeFi Staking

6. Combined interaction, embedded interaction, integrating DeFi strategies, focusing on optimizing Gas consumption

3. How to Understand "Boutique Account"?

The term "Boutique Account" refers to a high-quality account, with each account having on-chain records of real user behavior, independent actions, and a reasonable distribution of on-chain assets. Of course, everyone's understanding of a boutique account may vary. Projects distributing rewards to addresses also hope for real and high-quality accounts. Some may distribute equity NFTs for their own projects, while others focus on on-chain interaction profiles. The key focuses are often funds, activity, diversity, on-chain identity, loyalty, mainnet data (gas consumption, time, transactions, activity time), NFT holdings, etc. Be as real as possible.

Main focal points: Wallet history, interaction behavior, fund flow, asset holdings (tokens, NFTs), balance retention, multi-chain activity, partial social binds...

4. How to Control Cost in High Gas Fee Environments? On high Gas fee chains (such as Ethereum), what are your recommendations for optimizing interaction strategies?

1. Personally, I do not use many of the tools mentioned by others such as IP, ADS, and various programmatic methodologies mainly because I am not familiar with them. I focus more on the on-chain profile formed by gas loss through the account itself.

2. The cost of interactions with my own account includes: capital cost and gas cost.

3. Therefore, the core points I care about are where Gas consumption is occurring, either to increase weight or to enhance the on-chain profile. These two points are crucial to targeting the scope of airdrops from a project's perspective.

4. In terms of specific strategies, it is about leveraging DeFi, arbitrage, trading, minting, or transactions with higher weighting for the project. Recoup as much of the lost gas cost, while improving and enhancing the account profile. This has a significant reflexive nature; you must first learn to lose money and gas.

5. For high Gas fee blockchains like Ethereum, what are your recommendations for optimizing interaction strategies? The situation may vary, as in the past few years, only the first year had expensive Gas fees, while subsequent Gas fees were low. For example, currently on gas1, there is little activity, making it a good time to polish a new account. You can take advantage of this opportunity to interact with mainnet data in conjunction with a specific project.

5. Different projects have different interaction requirements. How do you adjust your strategy based on the project's characteristics?

Each project has different requirements for airdrop interactions. Blindly following tutorials is not very meaningful at this stage. Everyone hopes to achieve precise interaction with minimal cost and maximum return. This is very difficult to achieve and requires long-term practice, tracking, and dealing with uncertainty and reflexivity. This is also the most challenging aspect of this space.

1. My strategy has always been high-quality accounts, weighted interactions, calculating high input-output ratios, and risk control. I use a strategy of targeting high-quality protocols with high-quality accounts to execute transaction protocols. Different projects have different airdrop distribution logics, so bulk operations won't work, and instead, a targeted layout is needed. From my experience, success is not simply about quantity but about finding the correct interaction strategy that aligns with the project's goals and fits my own personality.

2. For example, when it comes to L1 / L2, one must consider TVL, authenticity, choosing native DApps, and a diverse portfolio. Take a realistic view to navigate the ecosystem.

For DeFi protocols, the focus from the project's perspective should be on rewarding committed users who provide long-term liquidity and engage in transactions, considering factors like deposit duration, amount, LP, etc. This requires a specific analysis based on on-chain data for each individual protocol.

When it comes to cross-chain bridges, staking protocols need to be assessed based on factors like the protocol's TGE (Token Generation Event) time, security, market positioning, and input-output ratios.

Case studies like EigenLayer and Babylon.

Furthermore, interactions can also enhance the quality and weight of an account. Here, I can elaborate on my logic behind participating in the W Wormhole project. For profits exceeding $10,000 with a single account, if you're interested in hearing more, I can explain further... I've discussed it, but prefer not to write about it here.

For community-oriented projects, it's important to encourage contributions. If the project involves NFT-related gameplay, emphasis should be placed on ecological NFTs and holding equity-type OG NFTs.

"Quality accumulation" is more important than "quantity accumulation," especially as the current market increasingly values genuine users. Therefore, precise interaction, proper fund allocation, and long-term account cultivation are the key focuses. In the current airdrop landscape, success is not about the number of wallets but about researching the project, understanding the rules, and executing effectively!

6 Many projects choose to sell the received tokens after an airdrop. How do you determine the right time to sell?

This is something I'm not good at. Now I hold a bunch of meme coins, and I am the typical representative who knows how to buy but not how to sell. I think there are many reasons for this. One aspect is that the market has changed. In the previous cycle, holders became rich overnight, but this time if you hold, you're likely to suffer losses. I held OP and ARB for over a year before. Some projects I staked in, and when the price dropped by 90%, many small gains turned into losses. Some projects airdropped tokens, and I truly haven't sold any yet, such as EigenLayer. If I encounter projects that have suffered heavy losses, I play dead and wait for them to go to zero, treating the listing price as the cost basis and recognizing the loss. I have always not pursued absolute value but rather a mentality of relative value.

After suffering many losses, based on my personal situation, at the current stage, I would roughly sell one-third of the airdropped tokens I receive, and then evaluate based on the project and market conditions. Most of the projects I acquired were VC coins. My main focus is on the project's final valuation, market cap at listing, unlocking schedule, and most importantly, market conditions. In fact, we cannot serve as a reference. The main reason for not wanting to sell is emotional attachment to the airdrop!

Chapter Three: The Future of Airdrops

1 How do you view the emergence of Pump and other meme launch platforms, and what impact will this have on meme coin trading?

Platforms like Pump.fun have lowered the token issuance threshold, allowing anyone to issue tokens within seconds using a one-click issuance model, automatically creating liquidity pools. In essence, this is an evolution of a new and extremely free asset issuance model. Its emergence signifies a shift from the early ICO and IEO models to the airdrop model, evolving into the current self-issuance model. It reduces the issuance barrier while also changing
the mindset and strategy of Web3 participants (especially meme coin traders).

1. Impact on Project Token Distribution

This free asset issuance model has lowered the token issuance barrier. With one-click issuance + automatic LP creation, no technical knowledge or funding is needed to enter the market. This new model not only impacts
the Meme sector but also brings changes to how traditional Web3 projects distribute tokens. Many projects choose not to list on exchanges first but rather directly on DEXs. Project teams no longer need to rely on traditional fundraising or token lockups but instead let the market determine the token's value.

2. Impact on Sir's Airdrop Lurking

Impact 1 - Mindset: The airdrop lurking cycle has been drastically shortened, posing a huge test to human nature. Speculative mindset intensifies. Previously, when airdrop lurking, everyone was used to a 3-24 month interaction period, patiently waiting for the Token Generation Event (TGE). Now, with Pump Meme coins, the price can skyrocket a hundredfold in just a few minutes, only to possibly drop back to zero within minutes. Compared to the lurking time, the returns are uncertain, and there are characteristics such as rug pulls and anti-lurking, making it unappealing compared to meme coins.

Impact 2 - Interest: Sir's airdrop lurking "belief system" collapses, and speculative gameplay is infinitely amplified. In the past, airdrop lurkers emphasized interaction depth, on-chain contributions, technical features, and value. Sir lurkers hoped for the long-term development of the project. In the Meme mode, the core driving force of the token is "emotion + narrative + FOMO for funds". Many lurkers no longer participate in airdrops but turn to memes. They no longer care about the project itself, only focusing on short-term fluctuations because it is more exhilarating, faster, and has a greater wealth effect. Everyone hopes to be the chosen one.

Impact 3 - Gambling: Sir lurkers become more FOMO-driven and easily fall into a gambling mentality. Traditional lurking emphasized stable and methodical approaches, but the Meme ecosystem has pushed the market into extreme speculative modes, increasing the tendency towards gambling.

2. Future Trends in Airdrop Lurking: Is There Still Opportunity Amid Gas Losses on Multiple Wallets?

I believe there is. Without multiple wallets, it is impossible to become rich or achieve excess returns. However, there needs to be a balance between personal funds and wallet fund circulation and distribution. Losing gas on multiple wallets is acceptable, but do not burn gas. There is a distinction here. The essence of future airdrop lurking lies in the "boutique wallet." Authentic interaction + natural fund flow + long-term activity is the optimal strategy. Lurking is no longer just about "quantity stacking" but rather a test of "strategy + execution + information asymmetry"! Those with strong execution capabilities can still stack boutique wallets and even more of them.

3. For projects that require Gas Fees and social media tasks, how should one handle them?

Some projects have a dual screening mechanism in their activity design, requiring both on-chain interaction (Gas Fee) and social interaction (Twitter, Discord, Telegram tasks, etc.). This model places higher demands on lurkers. If not handled properly, it may lead to excessive costs and time investment, ultimately resulting in mismatched returns. My advice and strategy are:

1. First, determine if the project is worth the "Gas Fee and social media" requirements. Before that, you must have your own logical judgment and thinking, while also ensuring that the project aligns with your personality, and devise a differentiated interaction strategy.

2. Here, a distinction is made between studios and individuals, and the strategies should be different. As a super individual, personally, I have maintained a set of 3 accounts. These are all early overseas mobile phone registrations, and all are long-term accounts. Within my personal capacity, they are maintained separately on different computers. The maintenance of these 3 accounts depends more on your behavior. Occasionally, there is a need for differential activity to keep them active. The 3 accounts are also checked for correlations, activity levels, and account quality. Due to time constraints, I won't delve into this further. Anyway, this is infrastructure work that must be done but does not require a large amount of demand.

3. Corresponding to a premium account, you can set up a set of 3 accounts, maintaining a manageable number of accounts that you can handle personally. For example, 100 accounts.

4. More focus on on-chain profiles and high-quality transactions. Abandoning a large number of ineffective web3 interactive tasks that are meaningless, the judgment of activities designed by the project team is crucial here.

4. Will TX be useful? What is the role of transaction volume in the process, and is it still effective?

As the project team's screening criteria and anti-whale mechanisms continue to evolve, this simple and crude accounting method is no longer the best strategy. Currently, the emphasis of the process is more on "interaction quality + transaction authenticity." However, TX and transaction volume need to be combined with "interaction depth." To give an inappropriate analogy, if you visited the bank several times before, the bank manager might know you, and occasionally even invite you for a coffee. At this stage, just making deposits may not be useful; you have to be a VIP and a long-term purchaser of their financial and insurance products to matter.

5. What kind of innovative airdrop design in the future will benefit the community, the project team, and the entire ecosystem?

This topic is quite broad and extensive. Doing a successful airdrop distribution is an art for the project team but can be a disaster if executed poorly. Let me briefly explain my understanding:

1. Airdrops have been proven to be a vital method for early growth and user acquisition in Web3 projects. However, the traditional airdrop model indeed has many problems, leading to projects giving out a significant amount of tokens but failing to attract long-term users. High percentages of "low-quality users" lead to damage to the tokenomic model.

2. A good airdrop is designed to attract new users, reward early adopters, retain more users, and promote growth around the project and ecosystem's economic flywheel. More innovative, fair, and sustainable airdrop designs should achieve a "win-win-win" situation for the project team, community users, and the ecosystem.

Future airdrop models and methods must adhere to the following core principles:

1- Long-term incentive mechanism (to avoid short-term selling, encourage ongoing interaction, and long-term contributions)

2- Combine on-chain data with off-chain community contributions to screen for genuine users, those who truly contribute

3-3 Win-Win Situation (User Growth = Ecosystem Growth)

4- Public Transparency (Clearly explain each rule and its rationale), no insider trading

Specific methods are diverse, and an example can be given: the "Gradual Release" mechanism, referring to OP's airdrop, multiple rounds of airdrops, comprehensive and continuous rewards for long-term contributions, on top of which more elements can be added, making the airdrop strategy and design more robust. There is no perfect solution, only an attempt to take care of small and medium retail investors as much as possible, as well as more genuine users.

Chapter 4: Advice for Beginners

1 How to Start from Scratch. For beginners who are just starting out and may have a few hundred U in funds, how should they get started?

Leveraging is a low-cost way to enter Web3 and earn some profits, but it is not simply a free money game. It should be a combination of cognition, strategy, and execution. Different people have different interaction strategies and methods at different stages, and there are differences between those with a technical background and those without. Here is my advice for newcomers who are just starting out and are not tech-savvy:

1. Philosophical Aspect (conceptual level): Correct Understanding

• Learning: Understand some ways to make money in the industry, the airdrop patterns, explore the ecosystem and protocols, and see which projects suit you in the early stage

· Principle: After making your own project judgment, it is clear that not all projects are worth leveraging. Before leveraging, you should have selection criteria. The essence of leveraging is "low-cost investment," and time, gas fees, and opportunity costs are all your "investments"; avoid FOMO.

• Direction: Choose the right track. Direction is more important than effort, and when leveraging, choose a track that is future-proof, has a large fund size, and may have long-term incentives

• Investment Research: Build a project library, learn to view projects, follow projects, calculate ROI, look at risks, odds, weight points, etc.

2. Tactical Aspect (execution level): Specific Methods

• Learn Correct Interaction: For example, how to swap, provide liquidity, find tokens, how to complete project tasks using the "3-set," etc. The core is to enhance interaction skills.

• Increase Account Weight: Learn to engage deeply and become an active, genuine, high-quality user in the ecosystem protocol.

• Cost Control: There are many ways to save costs, not only through staking and Kuigas, but also by participating in high-quality testnet projects available in the market.

• Multi-angle Participation: For example, from a user's perspective, deep engagement in the ecosystem, and from a creator's perspective, assisting projects in writing content, and so on.

Summary: From slow to fast, less is more.

2 Common Misconceptions?

Richness: Sometimes it's beneficial to suffer losses; some pitfalls must be experienced personally, and the most useful lessons come from self-reflection. People cannot teach you, but a situation can teach you at once.

3 How Can Beginners Access High-Quality Information Sources? Do You Have Any Recommended Information Channels or Tools?

A simpler way is to follow high-quality Key Opinion Leaders (KOLs) on platforms like Twitter, YouTube, etc. You can find projects through rootdata @RootDataCrypto, find the corresponding X account and team members, as well as information on funding.

For learning, OKX's web3 wallet @OKXWeb3_CN also offers many basic project tasks that you can use for practice.

Chapter Five: Recommendations for OKX

1 What Role and Influence Has OKX Played in the Development of Various Ecosystems?

OKX's wallet supports a particularly large number of ecosystems and chains. As far as I know, it currently supports 127 chains. Personally, in my interactive wallet, I consider OKX as my go-to wallet, and I usually share the same set of mnemonics with OKX and Little Fox.

Features: Secure, timely, smooth—the list is endless. I won't write about it anymore, but it's just so user-friendly. The Movement ecosystem owes a lot to the support of the OKXWeb3 wallet. When Movement needed to download an additional wallet, which was not user-friendly, I raised this issue with Haiteng @Haiteng_okx. He immediately connected me with relevant colleagues, swiftly supported Movement, making things much more convenient for us. We no longer needed to move assets back and forth.

2. In future development, what eco-partnerships would you like to see with OKX? In what form? What kind of partnerships would the community like to see?

The ecosystem is very broad and comprehensive. As far as I know, OKX's wallet team is very competent, and their business development (BD) expansion is also very strong, with rapid support and timely bug fixes. I think there may be room for optimization in terms of airdrop interaction. OKX @okxchinese has done well on a broad scale, but lacking in depth. Many users use OKX, so there could be a valuable growth system built around the user's wallet situation. This system can collaborate with many ecosystems, help both sides attract users, or provide OKX wallet users with more data benefits and rewards.

In terms of tools, things have been done quite well. For example, the recent real-time K-line support on X and one-click token trading. Regarding airdrops, OKX can act as an airdrop detector, where users with on-chain wallets can detect any unclaimed airdrops.

Closing:

Abundance: The experiences of these 5 years have strengthened my belief that true value lies not in what you know, but in what you can connect and execute.

In this ever-changing market, the strongest competitiveness comes from continuously evolving cognition, forward-looking layouts, and damn strong execution. Time is pressing, so please correct any mistakes in what I've said!

Mercy: I first heard of Teacher Abundance as if he were a legendary figure. Some even said that Teacher Abundance spends all year sitting in a temple doing airdrop tasks... After truly getting in touch, I found that whether it's the sincere and humble way of conducting oneself or the focused and diligent professionalism, both are worth learning and respecting for Mercy.

In this OKX friends' conversation on the "philosophy and art" of airdrops, Mercy gained three key insights:

1. Outstanding judgment is needed—It's more important to be "precisely efficient" than "efficiently vast";

2. High level of responsibility—Take every deal seriously;

3. Strong execution capability—Both newcomers and veterans need it.

Hopefully, everyone can benefit. Once again, thanks to Abundance @Kui_gas for sharing, and we welcome everyone to continue following the "OKX Friends" conversation series.

Risk Warning and Disclaimer

This article is for reference only. The views expressed in this article are those of the author and do not necessarily represent the views of OKX. This article is not intended to provide (i) investment advice or investment recommendations; (ii) an offer or solicitation to buy, sell, or hold digital assets; or (iii) financial, accounting, legal, or tax advice. We do not guarantee the accuracy, completeness, or usefulness of such information. Holding digital assets (including stablecoins and NFTs) involves high risks and may experience significant fluctuations. You should carefully consider whether trading or holding digital assets is suitable for you based on your financial situation. For your specific circumstances, please consult your legal, tax, or investment professional. You are responsible for understanding and complying with relevant local laws and regulations.


This article is contributed content and does not represent the views of BlockBeats

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To the people's governments of all provinces, autonomous regions, and municipalities directly under the Central Government, the Xinjiang Production and Construction Corps:


  Recently, there have been speculative activities related to virtual currency and Real-World Assets (RWA) tokenization, disrupting the economic and financial order and jeopardizing the property security of the people. In order to further prevent and address the risks related to virtual currency and Real-World Assets tokenization, effectively safeguard national security and social stability, in accordance with the "Law of the People's Republic of China on the People's Bank of China," "Law of the People's Republic of China on Commercial Banks," "Securities Law of the People's Republic of China," "Law of the People's Republic of China on Securities Investment Funds," "Law of the People's Republic of China on Futures and Derivatives," "Cybersecurity Law of the People's Republic of China," "Regulations of the People's Republic of China on the Administration of Renminbi," "Regulations on Prevention and Disposal of Illegal Fundraising," "Regulations of the People's Republic of China on Foreign Exchange Administration," "Telecommunications Regulations of the People's Republic of China," and other provisions, after reaching consensus with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, and with the approval of the State Council, the relevant matters are notified as follows:


  I. Clarify the essential attributes of virtual currency, Real-World Assets tokenization, and related business activities


  (I) Virtual currency does not possess the legal status equivalent to fiat currency. Virtual currencies such as Bitcoin, Ether, Tether, etc., have the main characteristics of being issued by non-monetary authorities, using encryption technology and distributed ledger or similar technology, existing in digital form, etc. They do not have legal tender status, should not and cannot be circulated and used as currency in the market.


  The business activities related to virtual currency are classified as illegal financial activities. The exchange of fiat currency and virtual currency within the territory, exchange of virtual currencies, acting as a central counterparty in buying and selling virtual currencies, providing information intermediary and pricing services for virtual currency transactions, token issuance financing, and trading of virtual currency-related financial products, etc., fall under illegal financial activities, such as suspected illegal issuance of token vouchers, unauthorized public issuance of securities, illegal operation of securities and futures business, illegal fundraising, etc., are strictly prohibited across the board and resolutely banned in accordance with the law. Overseas entities and individuals are not allowed to provide virtual currency-related services to domestic entities in any form.


  A stablecoin pegged to a fiat currency indirectly fulfills some functions of the fiat currency in circulation. Without the consent of relevant authorities in accordance with the law and regulations, any domestic or foreign entity or individual is not allowed to issue a RMB-pegged stablecoin overseas.


(II)Tokenization of Real-World Assets refers to the use of encryption technology and distributed ledger or similar technologies to transform ownership rights, income rights, etc., of assets into tokens (tokens) or other interests or bond certificates with token (token) characteristics, and carry out issuance and trading activities.


  Engaging in the tokenization of real-world assets domestically, as well as providing related intermediary, information technology services, etc., which are suspected of illegal issuance of token vouchers, unauthorized public offering of securities, illegal operation of securities and futures business, illegal fundraising, and other illegal financial activities, shall be prohibited; except for relevant business activities carried out with the approval of the competent authorities in accordance with the law and regulations and relying on specific financial infrastructures. Overseas entities and individuals are not allowed to illegally provide services related to the tokenization of real-world assets to domestic entities in any form.


  II. Sound Work Mechanism


  (III) Inter-agency Coordination. The People's Bank of China, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other departments, will improve the work mechanism, strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, coordinate efforts, and overall guide regions to carry out risk prevention and disposal of virtual currency-related illegal financial activities.


  The China Securities Regulatory Commission, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the State Administration of Foreign Exchange, and other departments, will improve the work mechanism, strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, coordinate efforts, and overall guide regions to carry out risk prevention and disposal of illegal financial activities related to the tokenization of real-world assets.


  (IV) Strengthening Local Implementation. The people's governments at the provincial level are overall responsible for the prevention and disposal of risks related to virtual currencies and the tokenization of real-world assets in their respective administrative regions. The specific leading department is the local financial regulatory department, with participation from branches and dispatched institutions of the State Council's financial regulatory department, telecommunications regulators, public security, market supervision, and other departments, in coordination with cyberspace departments, courts, and procuratorates, to improve the normalization of the work mechanism, effectively connect with the relevant work mechanisms of central departments, form a cooperative and coordinated working pattern between central and local governments, effectively prevent and properly handle risks related to virtual currencies and the tokenization of real-world assets, and maintain economic and financial order and social stability.


  III. Strengthened Risk Monitoring, Prevention, and Disposal


  (5) Enhanced Risk Monitoring. The People's Bank of China, China Securities Regulatory Commission, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, State Administration of Foreign Exchange, Cyberspace Administration of China, and other departments continue to improve monitoring techniques and system support, enhance cross-departmental data analysis and sharing, establish sound information sharing and cross-validation mechanisms, promptly grasp the risk situation of activities related to virtual currency and real-world asset tokenization. Local governments at all levels give full play to the role of local monitoring and early warning mechanisms. Local financial regulatory authorities, together with branches and agencies of the State Council's financial regulatory authorities, as well as departments of cyberspace and public security, ensure effective connection between online monitoring, offline investigation, and fund tracking, efficiently and accurately identify activities related to virtual currency and real-world asset tokenization, promptly share risk information, improve early warning information dissemination, verification, and rapid response mechanisms.


  (6) Strengthened Oversight of Financial Institutions, Intermediaries, and Technology Service Providers. Financial institutions (including non-bank payment institutions) are prohibited from providing account opening, fund transfer, and clearing services for virtual currency-related business activities, issuing and selling financial products related to virtual currency, including virtual currency and related financial products in the scope of collateral, conducting insurance business related to virtual currency, or including virtual currency in the scope of insurance liability. Financial institutions (including non-bank payment institutions) are prohibited from providing custody, clearing, and settlement services for unauthorized real-world asset tokenization-related business and related financial products. Relevant intermediary institutions and information technology service providers are prohibited from providing intermediary, technical, or other services for unauthorized real-world asset tokenization-related businesses and related financial products.


  (7) Enhanced Management of Internet Information Content and Access. Internet enterprises are prohibited from providing online business venues, commercial displays, marketing, advertising, or paid traffic diversion services for virtual currency and real-world asset tokenization-related business activities. Upon discovering clues of illegal activities, they should promptly report to relevant departments and provide technical support and assistance for related investigations and inquiries. Based on the clues transferred by the financial regulatory authorities, the cyberspace administration, telecommunications authorities, and public security departments should promptly close and deal with websites, mobile applications (including mini-programs), and public accounts engaged in virtual currency and real-world asset tokenization-related business activities in accordance with the law.


  (8) Strengthened Entity Registration and Advertisement Management. Market supervision departments strengthen entity registration and management, and enterprise and individual business registrations must not contain terms such as "virtual currency," "virtual asset," "cryptocurrency," "crypto asset," "stablecoin," "real-world asset tokenization," or "RWA" in their names or business scopes. Market supervision departments, together with financial regulatory authorities, legally enhance the supervision of advertisements related to virtual currency and real-world asset tokenization, promptly investigating and handling relevant illegal advertisements.


  (IX) Continued Rectification of Virtual Currency Mining Activities. The National Development and Reform Commission, together with relevant departments, strictly controls virtual currency mining activities, continuously promotes the rectification of virtual currency mining activities. The people's governments of various provinces take overall responsibility for the rectification of "mining" within their respective administrative regions. In accordance with the requirements of the National Development and Reform Commission and other departments in the "Notice on the Rectification of Virtual Currency Mining Activities" (NDRC Energy-saving Building [2021] No. 1283) and the provisions of the "Guidance Catalog for Industrial Structure Adjustment (2024 Edition)," a comprehensive review, investigation, and closure of existing virtual currency mining projects are conducted, new mining projects are strictly prohibited, and mining machine production enterprises are strictly prohibited from providing mining machine sales and other services within the country.


  (X) Severe Crackdown on Related Illegal Financial Activities. Upon discovering clues to illegal financial activities related to virtual currency and the tokenization of real-world assets, local financial regulatory authorities, branches of the State Council's financial regulatory authorities, and other relevant departments promptly investigate, determine, and properly handle the issues in accordance with the law, and seriously hold the relevant entities and individuals legally responsible. Those suspected of crimes are transferred to the judicial authorities for processing according to the law.


 (XI) Severe Crackdown on Related Illegal and Criminal Activities. The Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, as well as judicial and procuratorial organs, in accordance with their respective responsibilities, rigorously crack down on illegal and criminal activities related to virtual currency, the tokenization of real-world assets, such as fraud, money laundering, illegal business operations, pyramid schemes, illegal fundraising, and other illegal and criminal activities carried out under the guise of virtual currency, the tokenization of real-world assets, etc.


  (XII) Strengthen Industry Self-discipline. Relevant industry associations should enhance membership management and policy advocacy, based on their own responsibilities, advocate and urge member units to resist illegal financial activities related to virtual currency and the tokenization of real-world assets. Member units that violate regulatory policies and industry self-discipline rules are to be disciplined in accordance with relevant self-regulatory management regulations. By leveraging various industry infrastructure, conduct risk monitoring related to virtual currency, the tokenization of real-world assets, and promptly transfer issue clues to relevant departments.


  IV. Strict Supervision of Domestic Entities Engaging in Overseas Business Activities


(XIII) Without the approval of relevant departments in accordance with the law and regulations, domestic entities and foreign entities controlled by them may not issue virtual currency overseas.


  (XIV) Domestic entities engaging directly or indirectly in overseas external debt-based tokenization of real-world assets, or conducting asset securitization activities abroad based on domestic ownership rights, income rights, etc. (hereinafter referred to as domestic equity), should be strictly regulated in accordance with the principles of "same business, same risk, same rules." The National Development and Reform Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other relevant departments regulate it according to their respective responsibilities. For other forms of overseas real-world asset tokenization activities based on domestic equity by domestic entities, the China Securities Regulatory Commission, together with relevant departments, supervise according to their division of responsibilities. Without the consent and filing of relevant departments, no unit or individual may engage in the above-mentioned business.


  (15) Overseas subsidiaries and branches of domestic financial institutions providing Real World Asset Tokenization-related services overseas shall do so legally and prudently. They shall have professional personnel and systems in place to effectively mitigate business risks, strictly implement customer onboarding, suitability management, anti-money laundering requirements, and incorporate them into the domestic financial institutions' compliance and risk management system. Intermediaries and information technology service providers offering Real World Asset Tokenization services abroad based on domestic equity or conducting Real World Asset Tokenization business in the form of overseas debt for domestic entities directly or indirectly venturing abroad must strictly comply with relevant laws and regulations. They should establish and improve relevant compliance and internal control systems in accordance with relevant normative requirements, strengthen business and risk control, and report the business developments to the relevant regulatory authorities for approval or filing.


  V. Strengthen Organizational Implementation


  (16) Strengthen organizational leadership and overall coordination. All departments and regions should attach great importance to the prevention of risks related to virtual currencies and Real World Asset Tokenization, strengthen organizational leadership, clarify work responsibilities, form a long-term effective working mechanism with centralized coordination, local implementation, and shared responsibilities, maintain high pressure, dynamically monitor risks, effectively prevent and mitigate risks in an orderly and efficient manner, legally protect the property security of the people, and make every effort to maintain economic and financial order and social stability.


  (17) Widely carry out publicity and education. All departments, regions, and industry associations should make full use of various media and other communication channels to disseminate information through legal and policy interpretation, analysis of typical cases, and education on investment risks, etc. They should promote the illegality and harm of virtual currencies and Real World Asset Tokenization-related businesses and their manifestations, fully alert to potential risks and hidden dangers, and enhance public awareness and identification capabilities for risk prevention.


  VI. Legal Responsibility


  (18) Engaging in illegal financial activities related to virtual currencies and Real World Asset Tokenization in violation of this notice, as well as providing services for virtual currencies and Real World Asset Tokenization-related businesses, shall be punished in accordance with relevant regulations. If it constitutes a crime, criminal liability shall be pursued according to the law. For domestic entities and individuals who knowingly or should have known that overseas entities illegally provided virtual currency or Real World Asset Tokenization-related services to domestic entities and still assisted them, relevant responsibilities shall be pursued according to the law. If it constitutes a crime, criminal liability shall be pursued according to the law.


  (19) If any unit or individual invests in virtual currencies, Real World Asset Tokens, and related financial products against public order and good customs, the relevant civil legal actions shall be invalid, and any resulting losses shall be borne by them. If there are suspicions of disrupting financial order and jeopardizing financial security, the relevant departments shall deal with them according to the law.


  This notice shall enter into force upon the date of its issuance. The People's Bank of China and ten other departments' "Notice on Further Preventing and Dealing with the Risks of Virtual Currency Trading Speculation" (Yinfa [2021] No. 237) is hereby repealed.


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