In response to the dull and weird atmosphere that has filled the crypto market recently, chain researcher Haotian started with "The Darkest Moment of the Crypto Community" to explain the distorted values of current market project developers, investors and retail investors, and showed that the crypto ETFs that have been successively passed It is accelerating the speed at which traditional finance cannibalize the dividends of the currency circle.
Is the “darkest moment” coming for the crypto community?
Haotian pointed out that he feels powerless over the current value distortion of "innovation is useless" in the primary market and "MEME everything" in the secondary market, saying that the encryption industry seems to have really reached the so-called "darkest moment."
Industry and market sentiment are sluggish
He first pointed out that driven by the market atmosphere in the past two months, few projects can arouse investor excitement; perhaps due to lack of innovation, repeated narratives or disconnection between primary and secondary markets, but the community often talks about technology , narrative or commercial content, have become quite weak.
(Ignas: There is a lack of real innovation in the current market, naming communities, prediction markets, and game projects as potential innovation drivers in the future)
In this regard, Haotian emphasized that industry participants still need to maintain their spirit and continue to pay attention to hot spots and technologies:
This includes technical exchanges with front-line developers, or meetings with founders of some project partners for in-depth communication, etc. This will not only avoid the interference of secondary market sentiment, but also clearly touch the "innovative vitality" flowing in the industrial base.
Memes become the main theme of the market
At the same time, regarding the current situation where narratives such as "high FDV (fully diluted valuation), VC disruption, no takeover, and MEME is everything" have become the main theme of the market, he said frankly:
To be honest, from a purely speculative perspective, all cryptocurrencies are MEMEs, whether they rely on VC packaging narratives or are simply meme coins.
He added, "The former is easier to find value in the long term, while the latter creates wealth stories in the short term with a gaming mentality."
(Community opinion: Meme coins will gradually disappear and will not change venture capital)
Haotian emphasized that VC coins and meme coins each have their own advantages and disadvantages, and the choices are different with different risks. There is no right or wrong:
In any investment market, there are two groups of people with completely different long-term and short-term cycle concepts. If you choose VC coins, you have to endure the pain of slow growth, while if you choose meme coins, you have to bear the risk of zero. They just have different routes.
However, he still expressed his affirmation of the firm belief of many developers at the time when meme coins were taking off, emphasizing that there are uncertainties in the costs, costs and potential returns of any ecosystem chosen:
Even though this process is painful, every step is an accumulation of experience. Unlike MEME, once gambling gets out of hand, any big gamble may lead to irreversible consequences.
See ETFs both pass: No reason for long-term market negativity
In addition, Haotian is also optimistic about the adoption of Bitcoin and Ethereum spot ETFs, saying that it has brought the entire encryption industry into an unprecedented stage of prosperity.
(Ethereum vs. Bitcoin Spot ETF, Bloomberg Analyst: Very solid first day launch!)
He believes that as long as he is not too obsessed with trading and the short-term market sentiment itself, he can't find any reason to feel negative about the current market and industry:
From the perspective of the overall environment, the encryption industry is gradually breaking the niche feeling and rules of the past few cycles, and is rapidly integrating with web2 as web3.
Do currency circle dividends cease to exist?
Haotian shows that in the process of rapid convergence, developers, projects, narratives, scams, gameplay and options continue to increase.
However, he also admitted that the wealth growth of diamond handheld coins will also slow down as a result, and the transaction risks of frequent position changes will also become higher. In particular, it will no longer be useful to use past currency speculation experience to deal with the current environment:
Negatively, everyone’s early currency speculation dividends are disappearing; but positively, the web3 industry has become more competitive and mature.
Maturity is the only way for Web3
Finally, Haotian also emphasized that intensified competition and maturity are inevitable processes in the growth of the industry. Developers and investors need to face the difficult situation of starting a business and investing, and try to find more opportunities.
In this regard, he called on industry participants to still maintain their original intentions and not to be tempted by market sentiment:
You must not think that the industry is failing due to confusion of values, so returning to the so-called true nature of gambling, at least for most people, this is not the original intention of joining the encryption industry.
This article: Is the crypto industry’s “darkest hour” coming? Will currency circle dividends cease to exist after traditional finance enters the market? First appeared in Chain News ABMedia.
