What does the real money-making in the currency circle do?
Jul 29, 2025 pm 04:00 PMParticipants who truly make money in the currency circle follow five core logics: 1. The underlying asset capturers control the release of tokens through early investment or issuance of coins and cash out at high points, such as the Ethereum Foundation and SOL private equity investors; 2. Liquidity service providers include market makers to earn spreads and commissions, and DEX liquidity providers obtain 30%-300% annualized returns through handling fees, but they need to bear impermanent losses; 3. Infrastructure operators such as miners rely on low-cost electricity and advanced equipment to maintain profits, verification nodes obtain stable returns through pledge, and exchanges rely on transaction fees, listing fees and contract fund rates to achieve high income, such as Binance's estimated revenue in 2023 will reach US$12 billion; 4. Information arbitrageurs use on-chain data analysis tools (such as Nansen) or MEV robots to capture trading opportunities, and KOLs obtain high commissions through promotion projects; 5. Compliance service providers provide OTC bulk transactions, smart contract audits and compliance consultations, and a single service can charge tens of thousands to more than 100,000 US dollars; the key conclusion is that wealth distribution in the currency circle follows the "28 Law", and about 20% of participants with technical, resource or information advantages earn 80% of the profits. Ordinary investors should establish professional capabilities rather than blindly follow the trend. The long-term holding of Bitcoin (58% annualized in 10 years) has more than 90% of short-term traders.
Participants who really make money in the currency circle often follow the following core logic rather than relying on short-term speculation or luck:
1. Low-level asset capturers (project party and early investors)
Coin issuing team: control the rhythm of token release by designing economic models and cash out at high levels when liquidity is sufficient. For example, the Ethereum Foundation funded the ecosystem through early ETH reserves, and its value grew with the network effect.
Institutional investors: participate in private/public offerings at extremely low costs (such as SOL initial price 0.22 US dollars), and exit at the right time after the exchange is launched. The risk of project failure is required, but the return on successful cases can reach a hundred times.
2. Liquidity service provider
Market makers: Use algorithms to earn price differences between exchange trading orders and charge project commissions (usually US$50,000-200,000 per month). Leading teams such as Wintermute manage assets of over $500 million.
DEX liquidity provider: deposit funds (such as ETH/USDC) to earn transaction fees, with annualized returns up to 30%-300%, but you have to bear the risk of impermanent losses.
3. Infrastructure operators
Miners/Verification Node: Bitcoin miners maintain profitability through low electricity prices (needed to be
Exchanges: Binance and other platforms make profits by trading fees (starting from 0.1%), currency listing fees (hundreds of thousands of dollars) and contract funding rates (average daily 0.01%-0.05%). Binance's revenue in 2023 is estimated to be 12 billion US dollars.
4. Information arbitrageur
On-chain data analysis institutions: For example, Nansen's annual fee exceeds US$10,000, provides institutions with giant whale address tracking services. Professional traders are pioneering trading through MEV robots, and a single profit of up to hundreds of ETH can be achieved.
KOL/Community: Top cryptocurrency bloggers can receive commissions of $500,000 to $500,000, but they need to bear credibility risks.
5. Compliance service provider
OTC institutions: Provide bulk transactions for high-net-worth customers, with a price difference of 0.5%-2%, requiring bank channel resources.
Audit/Legal Institutions: Smart contract auditing single report charges US$10,000-50,000, and compliance license consultation fees exceed US$100,000.
Key Conclusion
The distribution of wealth in the currency circle follows the "28 Law": about 20% of participants make 80% of the profits, among which groups with technical advantages (such as development capabilities), resource barriers (such as low-priced electricity) or information poor (such as insider information) continue to make profits. If ordinary investors want to make breakthroughs, they need to establish professional advantages in specific areas (such as on-chain analysis and community operations), rather than blindly following the trend of trading. Historical data shows that short-term traders who have long-term holdings of Bitcoin (58% annualized in 10 years) have earned more than 90%.
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