Original author: CM, founder of BV DAO
Recently I have seen many big Vs talking about DWF. Combining this round of cycle narrative and the changes in market sentiment, I have discovered some interesting viewpoints. Is the entire Crypto being meme-ized and simplified from top to bottom, and is it in urgent need of a shot of stimulant?
1. De-complication and emotional release
Judging from the characteristics of this round of bull market, in addition to the institutional bull market brought about by the passage of ETFs, the gameplay in other fields is "de-complexification" and "de-disguise". To put it simply and crudely, the sentiment of pursuing "simple and high volatility" in this round of bull market has reached its extreme. Specifically,
DeFi has been labeled as being too complex, and the more complex it is, the easier it is to lose money.
NFT used to be the most valuable asset in the storytelling and pie-in-the-sky space, but so far there is not even a sign of a second explosion in this round.
The performance of these two king tracks in the previous cycle is very average in this round. There are many reasons for this phenomenon, including the stagnation of innovation and the loss of user confidence. After all, many people have experienced the collapse of FTX LUNA and the frequent security issues of DeFi. They are left with a bunch of monkeys singing alone. Rebuilding market confidence requires fresh blood, time, and a shot of stimulant.
This is the background for the birth of this round of bull market, which is extremely special and very polarized.
Therefore, this round of meme coins is community-driven, simple enough, expressive enough, and volatile enough. These characteristics have the best timing, location, and people.
2. Market Makers and Polarization
On the other hand, when it comes to market makers, after the various "elite" market makers in the last cycle experienced the FTX, LUNA and other incidents, the results were also very tragic. The era when everyone saw Sanjian and Alameda and just mindlessly played has passed. , the market suddenly discovered that it turns out that Crypto’s altar may really be a little more grass-roots than a grass-roots team. In such an environment, the extremely controversial DWF emerged in this round. DWF, which is known for only using strong drugs, seems to be playing the role of doping in this special era.
From the perspective of market makers, Crypto is different from traditional fields:
1. Scale: Compared to traditional financial markets, cryptocurrency market makers operate on a smaller scale.
2. Liquidity and Volatility: The crypto market has low liquidity and high volatility.
3. Regulation: Crypto market regulation is not perfect, and the relationship between exchanges, project teams, and market makers is complex.
4. Technology: Some market makers may be involved in some on-chain or DeFi financial strategies, so they need to have sufficient technical support to support the security of their transaction execution.
3. What is the controversial point?
Traditionally, the main functions of market makers are:
(1) Providing liquidity: By continuously providing buying and selling depth, we ensure that there is always liquidity in the market and investors can buy or sell at any time.
(2) Price Fluctuations and Discovery: Market makers help smooth out market price fluctuations and guide price discovery by adjusting bids and offers.
(3) Improving market efficiency: By matching transactions quickly, market makers can reduce transaction delays and improve market efficiency.
Therefore, we usually think that a good market maker has strong capital strength, can provide sufficient liquidity and make price fluctuations smoother. However, DWF's style has always been characterized by high volatility and drastic measures. It focuses on market making but also invests in many projects. Therefore, DWF often causes controversy due to its aggressive trading strategies and is accused of market manipulation.
4. Give you what you want
In fact, DWF has captured the main emotions and power of users in this cycle in a very controversial way - "giving you what you want", such as $NOT $FlOKI $LADYS, etc. In the current market environment, it has taken advantage of the right time, place and people. Although I am also a person who insists on long-termism and value investment, in fact, doing the right thing is not to sneer at anything like meme, ponzi or speculative attributes. Value investment is not an obsession, and long-termism is not high and mighty. I often see many people who have a very thorough analysis of market conditions and problems. It is great to be able to see the problem clearly, but only those who can adapt to every era are true heroes.
Judging from the current special bull market, DWF emerged in a very controversial way. No one knows how or where it will go in the future, but now it has been remembered by everyone in the market.
