jakiro
Author: Haotian
I saw someone in the English community saying that Meme Coin ruined this cycle. Although I have been calling for “technical narrative + long-termism” most of the time, I still have to objectively sing a negative tune: Meme Coin did not “destroy” this cycle, but acted as a market catalyst to accelerate the maturity of the industry:
1) The market has transitioned from “technology is king” to “attention is king”. Meme Coin has become the most intuitive manifestation of this transformation. Most technical narrative projects often have three to five years of Roadmap Deliver cycle. The market has lost patience, belief and trust, so it gives Meme Coin a time window to attract liquidity through the short-term wealth Fomo effect.
2) Meme Coin forces technical narratives to innovate themselves. In the past, the inverted model of VC coins “technical packaging” has reached a dead end. The era of harvesting leeks by financing valuation, technology packaging, and concept stacking is over.Technology projects are forced to return to real delivery because investors have already tasted the sweetness of “simple and straightforward, clear wealth effect” in Meme Coin, and can no longer accept projects with “complex technology but no delivery for a long time”.
3) Meme Coin expands the boundaries and foundation of the entire market. No matter how exquisite the technical narrative is, it can only attract some elite groups that can be understood. What Mass Adoption requires is a simple and easy-to-understand interaction method that can quickly generate consensus.
When a large number of ordinary users enter the market due to Meme Coin, some of them will inevitably conduct deeper ecological exploration, which has brought an unprecedented incremental user pool to technical projects and solved the long-term dilemma of “unused” technology projects.
4) The Meme boom will not cover the entire cycle, and its overflowing market vitality will benefit most of the crypto ecosystem.The nature of hot money pursuing profit determines that Meme Coin cannot continue to produce wealth effects. When most people have seen the duality of short-term wealth and zeroing, they will naturally find more balanced investment targets (who tends to be more stable investors).
At that time, technical projects that truly solve practical problems, establish user stickiness, and have a clear business model will usher in valuation reconstruction and complete the transformation from concept to value.So, for technical narratives, this is not the end, but the beginning of Nirvana rebirth.
5) Meme Coin is a complete reshuffle of the VC coin high FDV low circulation mode.The financing model dominated by VC in the past has created a distorted market structure of “high valuation and low circulation”, which has led to a general decline after TGE. This market structure has almost no room for ordinary investors to hold coins to rise, and has stifled the Crypto dream of retail investors to get rich by holding coins.
On the contrary, although the risks are huge, Meme Coin has reawakened the vitality of the market with its transparent, simplicity and equal participation by everyone, and brought the market back to a more fair and transparent competitive environment.It is hard to say that the smaller market space of some VC institutions and the forced withdrawal are related to the increasing mainstreaming of MEME coins.
