Turning Data into Gold: A Deep Dive into veDAO's Smart Money Products
Currently, with the boost of various emerging technologies, data is experiencing explosive growth. The era of big data was proposed more than a decade ago. Big data, AI, and web3 are at the forefront of the digital economy. Although they have specific differences in direction, there is a great potential for integration. The veDAO team is based on on-chain and off-chain big data, conducting large-scale data mining and pattern recognition through AI algorithms, exploring the wealth and value of on-chain and off-chain data in the web3 industry. This allows veDAO users to make more data-driven and analytical decisions related to encryption, rather than relying on experience and intuition. In order to enable users to make more efficient and convenient decisions in the encrypted world, veDAO will continue to be at the forefront of transforming big data into valuable signals (turning data into gold). This article will first share veDAO's understanding of data and its role, and then introduce veDAO's newly launched smart money products. In the future, we will detail the functions of veDAO's various segmented products and how to use them.
1. What is Data
Data is the record of phenomena on-chain or off-chain, and it has rich forms of expression: it can be in the form of numbers, text, images, sound, etc., recording and describing the attributes, relationships, and behaviors of things. Data can come from various channels and fields: individual users generate a large amount of personal data through on-chain behavior, social media, email, etc.; web3 projects or traditional enterprises obtain business data through business records, customer information, market research, etc.; encryption and other scientific research collect experimental data through observation, experiments, and surveys; third-party organizations and governments collect macro data through statistics and monitoring, etc. Data has various storage forms. In computers, data is diverse and complex. It can be structured data, such as tables and relationships in databases; it can also be semi-structured data, such as log files and emails; it can also be unstructured data, such as documents, images, and videos, etc.
2. The Role of Data
Data plays an important role in web3. Through data analysis and mining, we can discover the trends and rules of the web3 industry hidden in the data, providing a basis and guidance for decision-making. Data can also be used for prediction and forecasting, helping us make plans. Data is the contemporary oil and gold.
However, data itself is not equivalent to knowledge, let alone wisdom. Only after correct analysis, can data highlight its value. Oil and gold are of no value without extraction and processing. Overall, from data to wisdom, it is essentially a process of continuous processing of data, sorting out data from noise, transforming it into information, upgrading it to knowledge, and sublimating it into wisdom, which is the field where artificial intelligence technology excels. Especially in the current era of big data, data has the characteristics of large volume, fast processing speed, diverse types, and low value density. The value contained in data and the importance of data-driven decision-making are increasing, and the requirements for data analysis are also becoming higher. The veDAO team is continuously striving to accumulate big data and strong algorithms, striving for excellence, and is committed to creating a high-value and easy-to-use platform.
3. Tracking Smart Money: Walking with the Smartest People in the Encrypted World
Due to the characteristics of blockchain, on-chain data has the features of openness, transparency, immutability, and security. In other words, any data generated by smart contract interactions is published on the blockchain. Anyone can access this on-chain data, making it a public good. We believe that the current most popular and valuable product based on on-chain data is "smart money." In our previous article on smart money (How to Track Cryptocurrency Smart Money? The First Step to Financial Freedom | veDAO Research Institute — veDAO (mirror.xyz)), we have detailed what smart money is, why to track smart money, and how to track cryptocurrency smart money. Friends who are not familiar with or interested in smart money can review the article.
In short, a large amount of research has proven that smart money performs much better than retail investors in the long run in the cryptocurrency market, which is also the reason why they are called smart money. Based on in-depth research on user needs and competitive products, the veDAO team has launched its own smart money 1.0 version. Its unique innovation lies mainly in the fact that veDAO's smart money is not based on individual smart money wallets, but considers all smart money as a group, fully leveraging collective intelligence to provide users with more accurate decision-making basis. At the same time, veDAO's products are relatively more intelligent and easier to use.
3.1. Smart Money Based on Collective Intelligence
Collective intelligence, also known as collective intelligence, is a shared or collective intelligence, as well as a process of gathering people's opinions into decisions. It has been recognized for a long time that collective cooperation is more effective in solving problems than individual wisdom alone. "Collective intelligence" has long been recognized, and the ancient Greek philosopher Aristotle pointed out that the collective judgment of many ordinary people is often better than that of great individuals. The modern concept of collective intelligence is based on the observation of the collective intelligence of social animals in the natural world, which has the characteristic of the wisdom of the group surpassing individual wisdom, such as ants building bridges, birds foraging, and bees building nests. Collective intelligence is a rapidly developing field of artificial intelligence in recent years, which achieves distributed and decentralized intelligent behavior through the study of dispersed and self-organizing collective intelligence in biological groups.
Based on the above analysis, we believe that the decisions made based on a single smart money wallet address are often less accurate than those made by the collective smart money wallet addresses. Leveraging the collective intelligence of smart money provides far greater value in solving problems than the sum of the individual information of smart money wallets.
3.2. Using Collective Intelligence of Smart Money for Cryptocurrency Market Prediction
Based on the analysis of on-chain big data and collective intelligence above, using the collective intelligence of smart money for cryptocurrency market prediction has become feasible in the long or short term. Utilizing these attributes, veDAO collects cryptocurrency market information as quickly as possible, combining the on-chain interactions, transfers, trades, and holdings of over 20,000 smart money wallet addresses, and creates a general opinion about specific cryptocurrency projects or the overall cryptocurrency market based on AI technology and collective intelligence theory. In the article "How to Track Cryptocurrency Smart Money? The First Step to Financial Freedom," we mentioned that not all smart money wallets are as smart as they appear on the surface, and some smart money addresses are malicious, aiming to enter the market at lower prices than other traders and exit after other traders enter. There are also smart money wallets with multiple accounts, and the behavior of a single account cannot represent the true behavior of smart money. Predictions based on the collective intelligence of smart money can perfectly avoid the above problems. Effectively implementing the collective intelligence of smart money wallets can theoretically be used to more accurately predict changes in the cryptocurrency market. The collective intelligence of smart money wallets supports the efficient market hypothesis proposed by Eugene Fama—although the concept of collective intelligence is not explicitly used in his paper.
https://baike.baidu.com/item/%E5%B0%A4%E9%87%91%C2%B7%E6%B3%95%E9%A9%AC/0?fromModule=lemma_inlink
Several smart money tools recommended in the article "How to Track Cryptocurrency Smart Money? The First Step to Financial Freedom" are tools that facilitate analysis and tracking based on individual smart money. veDAO considers over 20,000 selected smart money wallet addresses as a group, based on AI technology and collective intelligence theory, to provide users with more fundamental and accurate project values and cryptocurrency market judgments.
3.3. Introduction to veDAO's Smart Money Products
veDAO's smart money is divided into Whale Smart Money and MEME Smart Money. Whale Smart Money tracks real-time changes in the behavior of the whale smart money group; MEME Smart Money tracks real-time changes in the behavior of the MEME coin smart money group.
In the details page of Whale Smart Money, you can see all the project tokens held by the smart money group, with 241 project tokens at 10:48 on September 20, 2023.
For the project tokens held by the smart money group, the details page of Whale Smart Money provides the number of smart money addresses holding the project tokens, the total holding quantity of the project tokens, and the total value of the holdings (cumulative stock data). You can click on the corresponding sorting button to perform sorting operations. This allows users to filter projects based on addresses, holding quantities, and holding values, in order to select high-quality projects that suit them.
The details page of Whale Smart Money also provides address and holding changes, and you can choose a 1-day or 7-day period in the upper right corner, making it convenient for users to select projects from an incremental perspective. Incremental sorting can select projects that smart money is most willing to hold in the near term, as well as projects that smart money has reduced holdings the most in the near term.
Cumulative stock is more conducive to users to select long-term valuable projects, which are mostly relatively mature and large-scale projects; incremental stock is more conducive to users to select short-term valuable projects, which are mostly relatively new and small-scale projects.
By clicking on a specific project held by smart money, you can enter the project's details page, where you can see more comprehensive, in-depth, and multi-dimensional information about the project (specific details will be introduced in subsequent articles), including on-chain, off-chain, and professional evaluations, etc.
In the details page of MEME Smart Money, you can see all MEME tokens held by the MEME smart money group, with 212 project tokens at 10:48 on September 20, 2023.
The stock and incremental indicators on the details page of MEME Smart Money are basically the same as those of Whale Smart Money, and will not be further introduced here. Interested users can experience them in depth. The difference lies in the selection of periods when performing incremental filtering.
By clicking on a specific project held by smart money, you can enter the project's details page, where you can see the historical data change trend chart of the number of smart money addresses holding the project and the quantity of holdings. Through visualized data, it presents the historical change trend of the number of holding addresses and the quantity of holdings; through the smoothness and overall change trend of the curves and bar charts of the number of holding addresses and the quantity of holdings, it shows whether the indicators are abnormal and the overall change trend of the indicators. This further helps to judge whether the anomaly is within a reasonable range; on the other hand, it helps to judge whether the anomaly has a periodic feature. At the same time, the historical data change trend chart can also be used for trend prediction.
In conclusion, in the era of AI, fully utilizing various intelligent tools and platforms to empower your investment strategy will become a norm in the future. Investors will be freed from the meaningless manual data organization and analysis process, relying on more intelligent tools to present the data and dimensions they want. veDAO's smart money feature is doing just that. Based on veDAO, you can find any data you want to reference, and AI intelligent investment advisors will help you with analysis, assisting your decision-making, ultimately achieving precise capture of Alpha, one-click investment, and calm profit-making.
TrendX
