An In-Depth Analysis of the Essence Behind Meme Market Phenomena

In the meme field, there is a saying: 'A fantastic market must undergo multiple rounds of 70% washout.' Murad has always emphasized this point. However, most people merely stay at the descriptive level of this phenomenon, while I will delve into its intrinsic essence for you.

Essentially, this phenomenon results from the combined actions of market makers and the market. Firstly, the sufficient turnover achieved through multiple surges and significant corrections will cause the comprehensive cost for investors to continuously rise.

As a result, when prices rise afterward, the stability of the entire market will greatly enhance. Otherwise, a situation may easily arise: after a surge, if a large holder chooses to sell, it may trigger a series of domino-like sell-offs, known as a 'meltdown.' This situation is most evident in PVP markets, and preventing such occurrences is the primary responsibility of a qualified market maker.

Secondly, the core of meme lies in the community. Whether considering the dimension of dissemination or based on the factors of exchanges 'selecting brides' (picking quality projects), a meme coin that does not possess the characteristic of 'picking up passengers on the way back' (i.e., corrections attracting more investors) is unlikely to build a strong and active community.

A strong community plays an indispensable role in the long-term development, value dissemination, and market recognition of meme coins; it is the foundation and driving force for a meme coin's sustainable and stable development in the market.