InfoFi Analysis: The Potential and Challenges of Emerging Tracks

Recently, the InfoFi concept is rising rapidly. The leaderboard of top projects has allowed early participants to reap substantial profits, and the prices of other projects have also significantly increased after launching new features.

As market giants have begun to seek opportunities in the InfoFi space, many people may still be wondering: What exactly is InfoFi? It doesn't trade in mainstream cryptocurrencies, but rather in seemingly intangible "attention", "reputation", and even the "probability of events occurring". Is this reliable? More importantly, how can ordinary investors profit from it? This article will delve into the core of InfoFi to provide a reference for grasping the next potential opportunity.

I. InfoFi Deconstruction: When "Information" Becomes a Tradable Asset

Definition of InfoFi 1.1

The core concept of InfoFi (Information Finance) is to transform traditionally hard-to-quantify non-price information, such as project attention, account reputation, proposal approval probability, and even narrative activity, into tradable and priceable financial assets. It can serve as a new speculative tool, allowing market participants to bet on the "information" itself; it can also become a powerful Alpha information mining engine, helping investors discover early signals within complex information.

1.2 The Background of InfoFi's Rise

The emergence of InfoFi is an inevitable result of technological development and the evolution of market demand:

• AI Technology Empowerment: The advancements in AI large models have made it possible to analyze and assess emotions from massive social media data, news, and on-chain behaviors, providing a technological foundation for the quantification and pricing of information.

• The market's thirst for new opportunities: The crypto market has been looking for the next growth point and Alpha opportunities, and the emergence of InfoFi provides a new imaginative space.

• "Attention precedes price" trend: In the current market, the surge in popularity of a project or narrative often precedes price movements. InfoFi aims to make this "precursor" explicit and tradable.

1.3 The Significance of InfoFi for Ordinary Investors

For ordinary investors, the significance of InfoFi lies in:

• Reducing information asymmetry: InfoFi has somewhat brought hidden information asymmetry to the forefront, and interpreting these "information assets" earlier may provide an advantage.

• Decision-making support tool: Even without directly participating in transactions on the InfoFi platform, the data generated (such as project popularity trends and market forecast results) can provide valuable references for investment.

• Small capital participation opportunities: Some InfoFi platforms allow users to participate with smaller amounts of capital, or even just publish content to seek potential returns.

2. InfoFi Landscape: Main Projects and Participation Methods

InfoFi's territory is rapidly expanding, here are some representative projects and how to participate in them:

2.1 Kaito

Kaito is the proposer of the InfoFi concept and a pioneer in the field. Its Yaps platform supports applications such as SocialFi through AI quantitative attention.

Participation method: Register on Kaito Yaps, connect your social accounts and bind your wallet. Publish projects related to the leaderboard or original, in-depth content from Kaito, and interact with high-reputation accounts to accumulate points. Users ranked higher may receive allocations of project tokens.

2.2 Galxe

Galxe has launched the community growth platform Starboard, which combines its task system with comprehensive data capture, dashboards, and AI sentiment analysis to help projects accurately identify high-quality users.

Participation method: Publish high-quality content related to the Starboard collaboration project on social media platforms to accumulate Aura points. At the same time, participate in traditional tasks on the Galxe platform to accumulate loyalty points.

2.3 Cookie.fun

Cookie.fun is an AI-driven instant data dashboard that has launched InfoFi and introduced Cookie Snaps, dedicated to analyzing crypto projects and opinion leaders, rewarding quality content.

Participation method: Publish original content related to the officially designated project on social media platforms to earn "snaps" points. When posting, you need to mention the official account, use relevant tags, and maintain interaction and content consistency.

2.4 Ethos Network

Ethos is an on-chain reputation assessment tool, known as the Web3 version of "Dianping". Its core function is to generate a credibility score to address on-chain fraud issues.

Participation method:

1. Improve reputation score: Evaluate others, vote or reply to evaluations, and use ETH to guarantee for others.
2. Participate in Ethos Markets: Bet ETH to predict the reputation changes of others or projects; after being invited, you can create your own reputation market.

2.5 bam.fun

bam.fun is a decentralized monetization platform for creators, allowing social media users to participate directly in brand marketing and earn income based on their genuine influence.

Participation method: Register with a social account and bind a wallet. Certified accounts can directly select brand tasks to participate; ordinary accounts mainly earn commissions by inviting others to register. Publish content according to task requirements, and the platform automatically tracks data and calculates earnings.

2.6 Noise

Noise is a "mindshare" trading protocol that allows users to speculate on trends of project attention, supporting leveraged trading.

Participation method: After receiving an invitation, you can trade the mindshare of various crypto projects on the Noise platform, speculating on trends such as market attention and discussion heat for the projects.

2.7 Wallchain

Wallchain is a Web3 AttentionFi ecosystem that assesses user influence through X Score, rewarding high-quality content and effective interactions with Quacks.

Participation method: Link social media accounts, publish valuable cryptocurrency-related content, add specific tags or mention the official account. Points can be earned when the content receives interactions, while also increasing the X Score.

2.8 MirraAI

MirraAI is dedicated to the precise selection of high-quality Web3 content, building an open and fair AI ecosystem through community-driven data training and validation.

Participation method: Connect personal social media accounts and follow official and its bot accounts. Publish high-quality content or discover high-quality content from others and submit it. If recognized by AI, both the creator and the discoverer can earn points.

2.9 GiveRep

GiveRep is a SocialFi protocol based on the Sui blockchain that transforms users' social interactions into on-chain reputation assets.

Participation methods: Mention the official account while interacting in comments on social platforms; publish high-quality original content and tag the official account; join the loyalty program list and publish content about designated projects.

2.10 XHunt

XHunt is an AI-driven InfoFi platform that helps users discover valuable opinion leaders and project parties, providing comprehensive rankings and special analyses.

Participation method: Publish comments on project parties and opinion leaders to earn points and token rewards.

2.11 QuoteChain

QuoteChain rewards high-quality content creators through a "content mining" model. After users publish content, it is assessed by AI, and high-quality content can earn native token rewards.

Participation method: After meeting the requirements for certification, number of fans, and account duration, creatively reply under the official posted message. Popular replies may receive official citations and token rewards.

2.12 DexCheck REP

REP is a content creation incentive platform launched by DexCheck, helping project teams accurately identify and reward genuine community supporters.

Participation method: Publish original content related to the promoted project and explicitly mention the project token name. Rewards are calculated and distributed based on weekly or monthly leaderboard rankings.

3. Strategies for Ordinary Investors to Participate in InfoFi

• Content creation type: Users skilled in creation can publish content on multiple platforms to earn rewards, but must be wary of inflated numbers and human manipulation.

• Direct trading type: Users who have judgments on specific events or market hotspots can participate in information asset trading on related platforms.

• Decision Support Type: Use the indicator data from various platforms as a reference for investment decisions.

• Project Investment Type: Research the InfoFi track and select promising project tokens for medium to long-term investment.

• Interactive participation type: Focus on emerging InfoFi projects, actively participate in testnets, community activities, etc., to strive for early airdrop opportunities.

4. Risk Warning for Participating in InfoFi

• Be vigilant about information overload and avoid falling into a new "information cocoon".

• Focus on genuine interactions and community quality, distinguish false popularity.

• Maintain independent thinking; any information provided by InfoFi tools is for reference only.

• Carefully read the project white paper and documentation to understand its mechanism, architecture, and token economic model.

V. The Impact of InfoFi on the Industry and Future Development

InfoFi is changing multiple aspects of the cryptocurrency industry:

• Provides new value realization paths for small and medium creators.

• Changed the traditional way of evaluating influence, but also raised concerns about information quality and market manipulation.

• Exploring a new model of "social behavior = currency."

• May generate stronger synergies with fields such as DeFi, SocialFi, and AI.

In the future, InfoFi may play a greater role in the following areas:

• Combined with DeFi, affecting credit assessment and trading strategies.

• Combined with SocialFi, providing a fairer market pricing for creator tokens.

• Combine with AI to introduce intelligent agents for information arbitrage and risk hedging.

For ordinary investors, understanding the essence of InfoFi, learning to use the tools, and avoiding risks are essential to finding their own opportunities in this emerging field.