📈 [Analysis] The importance of converting speculators into users - Tony Sheng

George Soros' Principle of Reflexivity, which relates false perceptions of fundamentals to bad actions, often drive price cycles in crypto markets. Projects typically ignore price, focusing on building networks or strengthening fundamentals and failing to address user reflexivity as a simple cause of price drops. Growth cycles are made up of three stages: acquisition, activation, and contribution. When paired with common conceptions of market price movement cycles, projects gain information to stop the downward cycle. For instance, if a project is failing to make acquisitions stick, they know to address the activation stage in order to control price movements. Relating true information well is key to battle reflexivity, so projects should control growth cycles through active management.