The crypto market, which has lost its sense of trust, may need to experience capital sedimentation in the future.
This topic may take a long time to discuss, and I have been too lazy to move these two days, so I will just talk about it briefly today.
The reason for this feeling is that meme coins have been popular since last year, especially recently. We found that after the Ethereum ETF was approved, Ethereum did not bring much growth. Of course, this is also because only half of the ETFs were approved, which is understandable. But why meme coins continue to explode and still eat up the few liquidity funds in the market? This is indeed worth thinking about.
Of course, the liquidity funds mentioned here are not the retained funds in the market. Currently, the retained funds in the market are 161.3 billion US dollars, which is still sufficient. Whether this fund is invested in Bitcoin or Ethereum, it can boost the market in a short time.
When I say liquidity, I put it in quotation marks. It refers to the people and funds that can still actively trade under the current market conditions.
Many people believe that meme created the myth of the crypto market, that meme is constantly recognized by bigwigs from all walks of life, that meme is recognized by Trump, and that meme may be the future narrative. There is even a saying that meme lives in the palace!
I personally have no prejudice against memes. I understand that meme coins are a kind of cultural token that hypes up emotional value, expectations, and the future. They can even be called emotional outlets. However, I do not think that many of the famous meme coins currently on the market are not manipulated by capital.
Why are big guys from all walks of life keen on meme coins? Because the narrative content is simple and does not even require good logic. You only need to create a hot spot, then come up with a loud slogan, and then create a few myths of getting rich in the early stage, and then there will be a large number of Retail investors came to take over. The method of capital harvesting will also be simpler. I don’t even need to find any reasons or rely on K-line trends. I only need to guide the market’s emotions and create emotional focus to generate great value. Where there is room for maneuver, there is profit.
The reason why memes are so popular is to give traders who ignore risks, pursue profits excessively, or even gamblers a place to vent. Human emotions are like this. When a certain emotion that has been suppressed for a long time can find a reasonable outlet, it will bring sufficient "traffic". This is the value created by using Internet emotions. Just like when you watch a live broadcast or a movie, as long as the emotional value is reached, many people think it is worth it.
Again, I have no prejudice against meme. Many people may think that I have not made money from meme, so I belittle meme. It is true that I am very cautious about buying meme coins, and I rarely judge the trend of meme coins, both internally and externally, because I feel that the market is controlled by emotions, and it is difficult for me to analyze some content. Of course, you technical experts can say that I am not good at this, but I admit it.
But I find it hard to agree with you that meme is the value trend of the future crypto market. Although meme is popular, has a strong wealth-making effect, and has a large flow of traffic, where is the core value of meme? What is its real value?
At this point, many people may say that the crypto market is all about speculation on expectations and narratives. What value are you talking about? This is what I want to say today: the crypto market is losing trust!
If you think that memes that rely on narrative emotions can hype the future, then let’s change the scenario. If in the stock market, a stock only tells you that this company will be number one in the world in the future, but you don’t know the actual financial statements, business operations, current financial situation, future plans and financial expectations, and even the personal information of the company’s executives, would you dare to invest in it?
Of course, you can say that the stock market is already an "aging" investment field for the crypto market and does not conform to the investment philosophy of young people, but is this really the case?
A normal token will tell you a narrative, make a plan, and then implement the plan, or promote a certain encryption technology, and then realize the technology bit by bit. Although in the end we find that most of them are just empty promises, at least there is a plan. Memes often don’t even have a plan, but they can become popular. In fact, it is also reminding us through the market that investors in the encryption market are losing trust!
The crypto market has lost trust!
As the crypto market matures, blockchain technology continues to change, and various technologies and financial methods emerge one after another, many sectors have relatively mature areas, and many token projects need to continue to innovate if they want to seize the market or attract traffic. However, as blockchain technology has developed to date, with the rapid expansion of the financial market, many developers have also found that their creativity may not keep up with the pace of capital expansion. At this time, if you are patient in creation and research and development, you may not be able to make money.
So what should we do? That is to force narrative, forced planning, and forced online immature technology.
Then they raise funds and develop through narratives, plans, and technology. Finally, when they can no longer hold on, they start issuing coins and building momentum, allowing the market to bring in funds and gain profits.
What is the final result?
The narrative failed and could not be continued. Plans were delayed, expected plans could not be completed, investors and VCs could not be explained, the technology was immature, it was forced to go online, there were various loopholes, bugs, and even attacks. In fact, we have seen too many of these things in recent years.
The popularity of inscriptions directly tore off the fig leaves of many public chains. The inscription casting of tens of thousands of people directly caused the website and the chain to crash. Various pledges, when pledge projects became popular, ended up with either pledge problems or refunds of pledges, or some people ran away. Public offerings of coins, various runs away. It seems that a newcomer to the currency circle may face many pitfalls in a year. The stupid leeks have gradually become vigilant, and in the current era of mutual appearance, news is also very developed and spreads faster.
result!
As a result, many excellent tracks were developed hastily, launched online, and then harvested, which made the subsequent project parties who really wanted to do things seriously dare not do it again because the previous harvest caused some sectors to lose credibility and popularity. This made it difficult for the originally good projects to continue.
Retail investors are also gradually becoming realistic. They have participated in so many awesome projects throughout the year, but in the end, they are all destined to be harvested. Those who make money don’t keep up, and those who lose money are all left behind. The pie drawn by the project party is probably too big to fit in several wallets. In this case, it is indeed impossible to blame retail investors for not trusting, nor can it be blamed on traders for losing trust in the market.
When I realized that after studying various tracks and doing investment research, I finally found that the core was just a cake sprinkled with sesame seeds, why didn’t I choose to eat the cake directly? When I eat the cake, I can choose the flavor.
The deformity of losing trust has become a market
Rather than telling a story or venting emotions, I think meme is just selling cakes. This cake has this flavor. In the future, you may eat silver cakes or gold cakes, but the future is uncertain. At least you can eat sesame seeds now. I won’t package any technology, token model, or future for you. I will just tell you that if you eat this cake, you may live longer in the future. Therefore, the most realistic probability-based mentality has given rise to the booming meme market.
What does the future hold?
For meme, since it has appeared, there must be a reason for its appearance. How long it can survive and how powerful it will be in the future is hard to say, but it will definitely exist. But will it be stronger than the traditional encryption market? I don’t think so. It’s just that the current market has entered an adjustment period.
In fact, everyone knows what happened recently. The most recent one is the issue of VC tokens. There is a lot of controversy on the Internet, and even Binance issued an announcement to adjust its own strategy.
VC matters are actually only a very small part of the market, and this market needs to experience some capital sedimentation.
After the crypto market has experienced rapid expansion, we will slowly find that the bright future we thought of before is really a fantasy now. Therefore, the rapidly developing market does need to press the pause button to make adjustments.
Things about VC may change in the future, and the emotions aroused this time may change the structure of VC in the future. At the same time, in the market, whether it is DeFi or technology, everyone should settle down, because if they don’t settle down, everyone will find that not only the market will not buy it, but even VCs will not buy it.
The market needs to go through a stage where technology development is solid, narratives are complete, plans are carried out step by step, and then things are done steadily. It needs to change the era where a market hotspot can create dozens or hundreds of token projects in the market. Of course, this is not that they really want to slow down, but the capital of the capital market is gradually settling, and money is not so easy to get. Naturally, everyone needs to improve their strength and engage in a wave of internal circulation. Although internal circulation is cruel, it can enhance the strength of all parties. Projects that survive internal circulation are expected to be very strong.
You see, last year, everyone was still dreaming about how decentralized the future would be. This year, with the approval of Bitcoin ETF, Ethereum ETF, and the advancement of US crypto regulatory measures, we found that true decentralization has become a false proposition. The process of the market turning from the dream of decentralization to pseudo-centralization will experience a period of sedimentation. Whether this sedimentation is due to internal circulation or external supervision, although it will temporarily slow down the development of the crypto market, it is a good thing for the future of the crypto market.
Finally, I wish you all a happy weekend, and may the memes you buy get a hundred times more!