Yesterday, Binance listed three meme coins. In fact, listing coins is also a normal exchange behavior. What we care about is how to make money on new coins. Later, Binance News specifically reported He Yi's views on this. After reading it, I still want to evaluate it comprehensively and objectively from the perspective of an investor, and give all coin friends a comprehensive picture of cognition.
He Yi said: Binance has no intention to lead the sharing to meme. Currently, there are roughly three types of projects in the market:
1. TG mini games, lots of fun;
2. A large number of infrastructure projects and other tokens are issued, all of which are highly valued VC tokens
3. Memecoin is the only hot project in the market. Previously, the contract followed the trend and listed NEIRO. The community reported that Meme was becoming a cryptocurrency, so we spent some time looking for projects with relatively low market capitalization and dispersed coin holdings to test the waters.
4. We are also keeping an eye on other types of projects. If you think a coin is good, you are welcome to recommend it.
I have been in the cryptocurrency circle for a while, and I have been exposed to a lot of VCs and Labs. It is very important to have a reasonable evaluation process. Let's talk about "TG games, many games". Let's not talk about the launch of dogs on binance. The subsequent hamster and catizen are all TG games. Catizen is invested by binance, and the launch is a natural process. Hamster has more than 50 million users, and there should be 5 million real users. In the cryptocurrency circle, a project with 10,000 to 20,000 real users playing a coin can have Lafite. From the earliest ICP email registration, you can get airdrops, to UNI, you can get airdrops after delivery, and there are too many gitcoin, dot, op, arb, zk, alt, xai, saga, strk, etc., only in the early stage of the project, someone needs to do delivery. I remember that after we invested in the project, we would help the project party find the community to do delivery. Delivery is a necessary process for the project party to modify bugs, and problems are discovered through everyone's delivery. At the same time, airdropping tokens is also very necessary. People can't work for you for free. If you deliver data for half a year or a year without any benefits, no one can think it's okay. For the hair-pulling studio or large-scale operations, the project party can completely ban them through witch means, ZK and ZRO have done it. Why not ban it? This is also the charm of the currency circle, you can make a lot of money. The get-rich-quick effect is what attracts everyone to the currency circle. Without the myth of Shib 100,000 times and the myth of BTC getting rich, many people would not enter the currency circle. Hair-pulling is part of the currency circle ecosystem. The g project is a platform dedicated to hair-pulling projects, and now it is traded on Binance. If hair-pulling is gone, the delivery test of the project is basically for display.
"A large number of infrastructure projects and other tokens are all highly valued VC tokens." The tokens with basic settings are indeed highly valued. It is a fact that they are being sold to make money. Binance is also helpless. If it does not go public, it will be listed on other exchanges and will be very popular. The root cause is that many projects did not have VCs at the beginning, and retail investors could invest in them, and the valuations were also small, such as link, uni, dot, ada, etc. in the last bull market. Later, they developed into formal VCs entering the market. With a large investment volume, the valuations are naturally high. Before, a good project could be launched with a few million, but now it is easy to invest hundreds of millions. It can be low, and all we can do is not touch it!
Testing the waters of memeCoin. Testing the waters is not a big problem. Three of them were listed at once during launchpool mining. The liquidity of the exchange was not enough to begin with, so it was directly drained. Is there a consensus in the currency circle? Yes, there was in the past, but it disappeared after the Bitcoin ETF was approved. The consensus was defeated by capital. The rise of VC was not due to consensus, but to market makers. The rise of Meme Coin was not due to consensus, but to market makers. From the beginning of the market at the end of last year to now, have the currencies with high growth rates (5-10 times) risen by consensus? I don’t think so. Therefore, it is inappropriate to choose meme coins based on this standard. Popularity and dispersion are not the reasons for the rise. BTC holdings are dispersed, with only 3% held by institutions and 53% held by retail investors. They are also unambiguous when they smash the market, and it will plummet as it should. This is the case with Bitcoin, let alone meme coins.
For this reason, I think we should not say that other projects have too many investors, nor should we say that VC projects are bad. It is okay to test the waters with memes. From the perspective of an investor, from the perspective of a retail investor, you should have the ability to identify, don't just go all-in when you see the increase or fomo, go for it! Manage your positions well, do a good job of investment research, and make the money you can make. You can still make money by listing new coins on Binance, the key depends on your cognition and technology. Investing is your own business, and investment is risky, so you need to be cautious when entering the circle. As an exchange, Binance also needs profit points, it depends on whether you become a fuel or a profiteer.
