Some people say that Meme Coin has ruined this cycle, although most of the time I call for “technical narrative + long-termism”, but still want to objectively sing a counter-argument: Meme Coin did not “ruin” this cycle, but 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 embodiment of this shift, most of the technical narrative of the project is often three or five years Roadmap Deliver cycle, the market has no patience to wait for, believe, and trust, so the Meme Coin rely on the short-term wealth of the Fomo effect of the attraction of liquidity in the window of time.
(2) Meme Coin forced the technical narrative of self-reinvention, the past VC coin “technology packaging” involution model has reached a dead end, relying on financing valuation, technology packaging, concept stacking can harvest leeks of the era is over. Technology projects are forced to return to the real delivery, because investors have tasted the sweetness of “simple and straightforward, clear wealth effect” in Meme Coin, and can no longer accept those “technologically complex but long-term non-delivery” of the project.
(3) Meme Coin expands the boundaries and foundation of the entire market, the technical narrative is subtle can only attract the part of the elite group who can read and understand, and Mass Adoption needs to be simple and easy to understand and can quickly generate a consensus of the interaction mode.
When a large number of ordinary users due to Meme Coin admission, some of them will inevitably carry out deeper ecological exploration, which is precisely for the technology project has brought an unprecedented incremental user pool, to solve the long-term technology project “no one use” predicament.
(4) Meme boom will not cover the entire cycle, while its overflow of market vitality will benefit most of the crypto ecosystem. The nature of the hot money for profit decided Meme Coin can not be sustained wealth effect, when most people have seen the two sides of the short-term wealth and zero, will naturally look for a more balanced investment target (tend to be more prudent investors).
At that time, the real solution to the actual problem, the establishment of user stickiness, with a clear business model of the technology project will usher in the valuation reconstruction, complete the metamorphosis from the concept to value. Therefore, for the technology narrative, this is not the end, but the beginning of nirvana rebirth.
5) Meme Coin is a complete reshuffle of the high FDV and low circulation model of VC coins. In the past, the VC-led financing model created a deformed market structure of “high valuation and low liquidity”, which led to a general decline after the TGE, and this market structure left little room for ordinary investors to hold coins to go up, killing the Crypto dream of retail investors to get rich with their coins.
On the contrary, although the risk is huge, Meme Coin, with its transparency, simplicity and equal participation for all, has reawakened the vitality of the market and returned the market to a more fair and transparent competitive environment. It is hard to say that the diminishing market space and forced exit of some VC organizations are not unrelated to the increasing mainstreaming of MEME Coin.
