InfoFi: A New Track in the Encryption Industry

Recently, the InfoFi concept is rapidly rising. Early participants in leading projects are reaping substantial rewards, and other project tokens have also seen significant price increases.

As the market's attention focuses on this emerging field, many may still be wondering: What exactly is InfoFi? It trades neither Bitcoin nor Ethereum, but rather abstract concepts like "attention", "reputation", and even "the likelihood of an event occurring". Is this reliable? More importantly, how can ordinary investors profit from it? This article will delve into the core of InfoFi, providing a reference for investors to grasp the next opportunity.

1. InfoFi Deconstruction: Information is Asset

1.1 Definition of InfoFi

InfoFi(Information Finance)'s core concept is to convert traditional non-price information that is difficult to quantify, such as project attention, social account influence, and proposal approval probability, into tradable and priceable financial assets. It is both a new type of speculative tool and a powerful information mining engine, helping investors capture early signals amidst vast amounts of information.

1.2 The Background of the Rise of InfoFi

The emergence of InfoFi is rooted in technological advancements and market demand:

• The advancement of AI technology has made it possible to analyze a large amount of social data, news, and on-chain behavior, laying the foundation for information quantification and pricing.

• The encryption market's ongoing exploration of new narratives and investment opportunities has led InfoFi to provide new ideas.

• The trend of "attention preceding price" is particularly evident in popular projects. InfoFi aims to make this "precursor" visual and tradable.

1.3 The significance of InfoFi for investors

For ordinary investors, the value of InfoFi lies in:

• Reduce information asymmetry: Make hidden information differences explicit to provide new perspectives for investment decisions.

• Assist in discovering investment opportunities: The data generated by the InfoFi platform can serve as investment references, helping to assess market sentiment.

• Small investment, big opportunity: Some InfoFi platforms allow small amounts to participate, and even just posting content can yield potential returns.

2. InfoFi Project Overview and Participation Methods

The InfoFi sector is rapidly expanding, here are some representative projects and how to participate in them:

2.1 Kaito

Introduction: Kaito is the proposer and pioneer of the InfoFi concept, and its Yaps function uses AI to quantify attention, supporting various application scenarios. Kaito is committed to becoming the interoperable financial layer of internet information, connecting creators, users, and brands.

Participation method: Register for Kaito Yaps, connect your social accounts, and bind your wallet. Publish original, in-depth content and interact with high-reputation accounts to accumulate points. Users ranked higher may have the opportunity to receive project token allocations.

2.2 Galxe

Introduction: Galxe has launched the community growth platform Starboard, which combines its task system to help projects accurately identify high-quality users through comprehensive data analysis and AI sentiment analysis. Users can earn rewards through genuine contributions and accumulate verifiable reputation assets.

Participation method: Publish relevant high-quality content on social media platforms to accumulate points. Continue participating in tasks on the Galxe platform; these points may collectively serve as a basis for reward distribution.

2.3 Cookie.fun

Introduction: Cookie.fun is an instant data dashboard that has launched the Cookie Snaps feature, analyzing encryption projects and opinion leaders, rewarding high-quality content. The platform offers multi-dimensional metrics, being more open compared to other projects.

How to participate: Publish original content related to the specified project on social media platforms to earn points. When posting, you must mention the official account, use relevant tags, and maintain interaction and consistency.

2.4 Ethos Network

Introduction: Ethos is an on-chain reputation assessment tool, known as the Web3 version of "Dianping". Its core is to generate credibility scores to address on-chain fraud issues. Ethos has also launched a reputation market where users can speculate on various reputations by buying and selling "trust tickets".

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

Introduction: bam.fun is a decentralized monetization platform for creators, allowing social media users to participate in brand marketing and earn income based on their real influence. The platform automatically tracks content performance and distributes rewards based on a comprehensive scoring mechanism.

Participation method: Register and bind your wallet using a social account. Verified users can directly choose brand tasks to participate; regular users mainly earn commissions through invitations. After the task is completed, rewards are automatically distributed to the bound wallet.

2.6 Noise

Introduction: Noise is a protocol for "attention share" trading, allowing users to speculate on project popularity trends, supporting high leverage, and pricing based on third-party data streams.

Participation method: After receiving an invitation, users can trade the attention trend of various encryption projects on the Noise platform. The specific incentive plan has not been announced yet.

2.7 Wallchain

Introduction: Wallchain aims to measure and reward the real impact of encryption content. It evaluates user influence through the X Score, and Quacks rewards high-quality content and effective interactions.

Participation methods: Bind social accounts, publish valuable encryption-related content, add specific tags or mention official accounts. Earn points through interactions while enhancing X Score.

2.8 MirraAI

Introduction: MirraAI is committed to the precise selection of high-quality Web3 content, building an open and fair AI ecosystem through community participation in data training and validation. Participants earn points or token rewards by contributing content.

Participation method: Connect personal social accounts, follow official and bot accounts. Earn points by creating content, discovering high-quality content from others, etc. Each person has a limit on the number of content scouting attempts per day.

2.9 GiveRep

Introduction: GiveRep is a SocialFi protocol based on Sui that transforms user social interactions into on-chain reputation assets $REP. The core functionality establishes on-chain reputation by tracking user behavior, with a Trophy Score metric.

Participation method: Mention the official account while interacting on social platforms; publish original content and tag the official account; join the loyalty program list and post content related to specified projects.

2.10 XHunt

Introduction: XHunt is an AI-driven InfoFi platform that helps users discover valuable opinion leaders and projects. Users can view comprehensive rankings, specialized rankings, financing conditions, and other information, and rate projects and opinion leaders.

Participation method: Comment on projects and opinion leaders to earn points and token rewards.

2.11 QuoteChain

Introduction: QuoteChain rewards high-quality content creators through a "content mining" model. AI evaluates content quality, and high-quality content can earn the native token $QT as a reward. The participation threshold is relatively high, requiring a certified account and meeting certain conditions.

Participation method: After meeting the threshold requirements, reply under the official post released. Popular replies will be quoted and receive token rewards. You can check the rankings and reward status on the platform.

2.12 DexCheck

Introduction: REP is a content creation incentive platform launched by DexCheck, helping projects to accurately identify community supporters. The entry threshold is low, and the content is divided into "meaningful" and "promotional" categories. Projects must pass official review and token holder voting before going live.

Participation method: Publish original and relevant content, clearly mentioning the project's token name. Rewards are calculated and distributed based on weekly or monthly rankings.

3. Strategies for Retail Investors to Participate in InfoFi

1. Content Creation Type: Users skilled in creation can publish content on multiple platforms to earn revenue, but they should be wary of inflated metrics.

2. Direct Trading Type: Users who have a grasp of specific events or market hotspots can trade information assets on relevant platforms.

3. Decision Support: Use the data from the InfoFi platform as an investment reference to assist in project investment decisions.

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

5. Interactive Participation Type: Focus on emerging InfoFi projects, actively participate in testnets, community activities, etc., and strive for early airdrop opportunities.

4. Risk Warning

1. Be wary of information overload and avoid falling into a new "information cocoon."

2. Focus on real interactions and community quality, and discern false popularity.

3. Maintain independent thinking; the information provided by InfoFi tools is for reference only.

4. Carefully study the project white paper and documentation to understand the project mechanism and token economic model.

5. The Industry Impact and Future Development of InfoFi

InfoFi is reshaping the way information dissemination and value assessment are conducted in the encryption industry. It provides a new platform for small and medium creators, but also raises concerns about content quality and market manipulation. In the future, InfoFi may generate stronger synergies with fields such as DeFi, SocialFi, and AI.

• InfoFi + DeFi: On-chain reputation may become a reference for lending credit; quantitative strategies can use InfoFi data as trading signals.

• InfoFi + SocialFi: The pricing of creator Social Tokens may be more market-oriented.

• InfoFi + AI: AI agents may participate in the InfoFi market for information arbitrage and risk hedging.

For investors, understanding the essence of InfoFi, making good use of tools, and avoiding risks are the keys to becoming "information prospectors". InfoFi has brought new opportunities to the encryption market, but it has also posed new challenges. The future development is worth continuous attention.