ZK (Zero-Knowledge Proof) is recognized as the holy grail of blockchain technology, capable of solving both privacy and scalability issues. Projects like ZK-Sync and Starknet have raised astonishing amounts of funding. But why do their token prices always perform disappointingly?
Key Insights:
1. The technology is too hardcore, and the narrative is not attractive: Compared to MEME or AI, privacy technology is too difficult to understand, making it hard to tell a compelling story of getting rich quickly to new investors.
2. The Damocles sword of regulation: Privacy is a double-edged sword; it is at the core of decentralization and also a thorn in the side of regulatory bodies (for example, Tornado Cash was sanctioned). This leads to large funds being wary of excessive involvement.
3. Long-term value vs short-term speculation: ZK is infrastructure, and its value takes a long time to manifest. If you are a short-term trader, this field may not be suitable for you; if you are a long-term believer, now is actually a good time to accumulate positions.
Key Insights:
1. The technology is too hardcore, and the narrative is not attractive: Compared to MEME or AI, privacy technology is too difficult to understand, making it hard to tell a compelling story of getting rich quickly to new investors.
2. The Damocles sword of regulation: Privacy is a double-edged sword; it is at the core of decentralization and also a thorn in the side of regulatory bodies (for example, Tornado Cash was sanctioned). This leads to large funds being wary of excessive involvement.
3. Long-term value vs short-term speculation: ZK is infrastructure, and its value takes a long time to manifest. If you are a short-term trader, this field may not be suitable for you; if you are a long-term believer, now is actually a good time to accumulate positions.