Written by: JiaYi

This picture is very interesting. From the perspective of users, the endless stream of Meme and Ton mini-game projects have almost engulfed the market. Many people point their arrows at Binance, thinking that it has "brought bad influence" to the trend. After checking one by one, it turns out that The steps of the big offices are surprisingly consistent, "The eldest brother does not make fun of the second brother."

To put it bluntly, this is not just a problem for any CEX, but the entire market is going through a painful period of adjustment.

It’s just that Binance’s externalities are too great. Every move it makes directly affects everyone’s nerves and becomes a weather vane. Therefore, when the market is systematically in trouble, it becomes the biggest and most natural target. This also shows that everyone has a strong interest in Binance. has the highest expectations.

The Crypto industry is “accelerating its liquidation”

So what's the problem?

In my opinion, the entire Crypto industry is experiencing an "accelerated liquidation" involution. In fact, we only need to ask ourselves: apart from mainstream coins, are you trading more Meme or VC coins this year?

There is no doubt that the answer is that since 2023, everyone has piled up Meme coins that they know are worthless but are actually "making wealth myths". This is a fact...

Voting based on the actual use of funds will not deceive anyone. Crypto itself is the industry closest to money. Users, entrepreneurs, and project developers all instinctively tend to opportunities and hot trends that can bring tangible benefits. Therefore, before, everyone criticized CEX for praising those VC projects with billions of valuations that only told stories but lacked real value were left to retail investors to take over. As a result, Meme became a symbol of grassroots resistance to VC.

It's just that Meme and Ton mini-games are like lighting up a box of gorgeous fireworks. The user flow, incremental funds, and attention are all immediate. They look beautiful on the books for a while, but they are also accelerating the drain of market liquidity and overdrafts. Users have trust in exchanges and Crypto, so the situation has changed, and now the voices of Meme scolding are getting louder and louder.

The exchange is not the referee

This moment is just like that moment.

In the final analysis, before a project is listed, the core should be to build and establish its own community consensus. If you don’t believe in your project and tokens, and just want everyone to take over and cash out, then the atmosphere of the entire community will be bad. Will completely collapse:

The current community consensus among big FDV projects is this, "I'm just here to play. After going online, as long as the FDV is high and I have more airdrops, I will sell it immediately."

Therefore, the entire market is now in a confused state that is both involved and out of focus. The exchange is not a referee. It looks at the emotional value of the community and retail investors. When the community’s attention is on Meme and Ton games, when this kind of When consensus becomes mainstream, exchanges will become timid and afraid to engage in large projects.

After all, for CEX, you can make money no matter what, so following the trend of the community has naturally become the smoothest option. It is precisely because of this situation that some really good Builders have been buried. To put it bluntly, there is something wrong with the underlying logic of the market. At most, CEX just stepped on the accelerator.

So everyone stopped pretending and directly embraced Meme and mini-games, which are like products quickly matured by fanatical beliefs. Even if they are not recognized by the market as imagined, at this juncture, who cares about whether the belief can be recharged, whether it can make money, or not. Taking over is the highest criterion.

As shown in the figure above, even when the market continues to decline, major VCs still have dozens or even hundreds of times of floating profits on their investment in these tokens, and the overall unrealized profits of VCs are still as high as 8 times.

Breaking the impasse requires tacit understanding among three parties

How can the industry escape from this spiral?

To be honest, this first requires the project parties to carefully build truly valuable projects instead of chasing flashy concepts for short-term interests. Then the community will slowly stop blindly following the trend and use its own voice and actions to support those with potential and potential. A sincere project - only when the project team and the community work together can the exchange realize the real needs of the market and make the decision of "good money drives out bad money".

I asked myself, what is a good project? Projects that provide value? What is value? To put it simply, let users trust you; make users think they can make money by holding your tokens; make users reluctant to sell your tokens; let users make money.

Of course, in this chaotic moment of the market, CEX needs to have a heavyweight character who can make the final say, stand up, withstand the pressure, live as a baton for the industry, and tell everyone: Look, as long as the project truly does things with sincerity and is committed to If they are committed to promoting the progress and innovation of Web3 and creating value for users, then they will reap the rewards they deserve, and they deserve to make money.

We need more developers and founding teams who deserve to make money.

There is only such a fixed star with both ability and willingness (to be honest, only Binance can stand up and do something at the moment), who uses the money-making effect as a baton, and is willing to cut himself off, so that those who really have strength and potential can The project will receive more attention and support, which will lead the entire industry to re-examine its own development model, allowing market confidence to gradually recover and investors to slowly return to rationality.

It’s just that this requires a tacit understanding among the project team, the community, and CEX.

Of course, the worst situation will also give rise to the most brilliant opportunities - in the final analysis, it is just another complete purge. "This cruel joy will eventually end cruelly", a long dark period After the storm has passed, everything is clean, the horses are still running, the dance is still dancing, at most the protagonist has been changed.

Summary: Finally, I want to say something secretly. When Binance launched Nerio, I cursed and bought it, and then I made money in shame... It’s so delicious. This is the current market.

(The above content is excerpted and reprinted with the authorization of our partner PANews, original text link )

Statement: The article only represents the author's personal views and opinions, and does not represent the objective views and positions of the blockchain. All contents and opinions are for reference only and do not constitute investment advice. Investors should make their own decisions and transactions, and the author and Blockchain Client will not be held responsible for any direct or indirect losses caused by investors' transactions.

〈Meme and Ton mini-games are engulfing the market. Is there an “industry clearing” that is not limited to CEX? 〉This article was first published in "Block Guest".