Meme has become the most unavoidable and absent opportunity in the industry, serving as a carrier of cultural trends, with the magnitude of these trends determining the ceiling of a Meme. This article is based on a long post by Yetta, organized and translated by PANews (Background: The pathological value crisis hidden behind a kid relying on meme coins to 'harvest quick money') (Background Supplement: Is selling MEME meme culture the new wealth code or the next bubble trap?) Yetta, are you anxious about this market? This was a serious question posed to me at a dinner gathering. I was initially stunned and didn't understand why we should feel anxious, "Because many people believe that Meme is thriving and VC coins are dying, haha." The biggest discussion at this DevCon is indeed about Meme, and colleagues jokingly said that discussing first-tier investments delays trading Meme, while others ask if we have included Meme in our asset allocation. To be honest, we are not very anxious, or rather, we anticipated this situation at the beginning of the year. Primitive is a evergreen fund without external funding, allowing us to view the industry with a longer time dimension. We also do not have the pressure of capital allocation, and do not need to explain to LPs who do not understand our industry the reasons for investing in any track (LPs can often be a huge pressure). Everything we do follows our curiosity to learn where the value and talent flow in this industry. In this primary and secondary market of Crypto, the definition of VC is closer to its essence: Bet on Things with Venture Return. Following any ideology or participating in any political struggle is meaningless; learning from the market is key. First, let me share our understanding of structural changes in the industry. At the beginning of this year, we conducted extensive reviews of industry structural changes and wrote an internal report titled "Cycle of Front Running". TLDR: The polarization in our industry is becoming increasingly severe. On one hand, the industry's size is growing, with TradFi incorporating a large amount of Crypto assets into Wall Street through compliant means like ETFs, which takes away this part of liquidity and makes it difficult to convert into our on-site funds. On the other hand, the strong expansion of populist capitalism is further compressing attention economics, making the entire financialization process increasingly simple and brutal, with the most Crypto Native approach becoming to directly trade Meme, which is also a realm that TradFi cannot touch. Under such a macroeconomic and social background, on-site liquidity is continually shrinking. In the past, we said the Barbell Strategy aimed for integration at both ends, but the result is the opposite; our polarization is intensifying. Thus, the middle ground in our industry is becoming increasingly difficult. Who are these middle grounds? They include all institutions that have risen due to the dividends of the wild era. Offshore CEX, Trading Firms, Crypto financial service providers, and VC, no one can escape this. This structural change will make Offshore CEX anxious; the Future OI of CME has already surpassed Binance. If mainstream coins are increasingly traded in compliant trading venues due to TradFi’s entry, while Meme can also pump out projects exceeding 1B on-chain, is Binance's space being squeezed? Besides Offshore CEX, those Market Makers who previously relied on Crypto see high-frequency quantitative teams from Wall Street entering with their own infrastructure and funds, how should they break through? With their decline, the sense of presence of the third-party financial institutions serving them is also weakening, let alone VCs that cannot trade actively. This polarization and liquidity squeeze are fundamental changes in our industry. Whoever finds the breaking point will be able to win. Secondly, what exactly is the problem with VC Tokens? I completely understand the market's sentiment towards VC Tokens. Projects launch with extremely high FDV, and after going live, they continuously unlock and dump for profit. Since it’s all a casino, why not go to a relatively fairer casino to play Meme PVP? If I lose, I can only blame my slow hands, rather than helping a VC coin worth billions of dollars to take over. What is the essence behind this problem? It is that our industry’s Liquidity Supply Chain has gone awry. Why can Solana keep reaching ATH? Because they have real products that can generate continuous profits for Sol, thus turning the user Community into a Trading Community, and the positive feedback loop becomes a kind of self-fulfilling prophecy, which is key to forming Buy Pressure. The DeFi of the last Cycle was actually similar; products launched with minor innovations were fun, DEX created liquidity and continued value discovery. When the consensus between the product Community and the trading Community formed, CEX listing further released liquidity, achieving a win-win-win among projects, communities, and CEX. A healthy ecosystem is: those playing on-chain are willing to buy coins, and are even more willing to advocate, leading to a positive cycle in this liquidity supply chain. And now? The problem that VC Tokens face is the rupture between these two Communities; the mainnet just launched and TGE happened, but the products have not landed, and the Community is merely here to grab airdrops, resulting in sell-offs. Last Cycle, we still had Sam/Su to help us leverage buy Alts, but this Cycle has basically cleared out leverage; at the same time, many VCs raised a lot of funds in the last bull market and faced pressure to allocate, and in order to show LPs attractive returns, they had to push up the valuations of projects round after round. This led to the current situation of VC Tokens, opening at high valuations with no buying power; what can they do besides drop? Thus, it is natural to understand the logic behind the emergence of Meme; if the projects invested by VCs cannot take off, and they are all trading air, why not trade something with a lower and fairer valuation? Meme has become the most unavoidable and absent opportunity in our industry. Under the polarization analyzed at the beginning of this article, Meme has become one of the most significant tracks in our industry. I always thought Meme was purely speculative, but until this time I realized I was wrong; it is a carrier of cultural trends. Its value lies not in specific functions and technologies, but in its unique ability to carry collective consciousness, emotions, and recognition, which is no different from the logic of religion. Beneath the absurd surface lies a profound social psychological need and value concept, tokenizing thoughts and emotions into products and capitalizing them. In other words, its core product is the thoughts and narratives it carries, and the size of these thoughts and narratives determines the ceiling of a Meme. Pioneer technology, idol worship, emotional IP, subcultural trends, our analysis of its underlying potential is akin to VCs analyzing the prospects of a product's track.