Weekend idle thoughts: Why did http://pump.fun successfully cross the cycle, but http://friend.tech and Oridnals inscriptions did not?
Possible causes:
1⃣http://pump.fun wisely chose Solana as its infra, which has a very high cost-effectiveness of Gas/TPS and abundant liquidity. The base chosen by http://friend.tech and Bitcoin with Oridnals inscriptions do not have both of these conditions;
2⃣http://pump.fun's product positioning is more in line with the first principle. It is a pure on-chain slot machine that serves one of the most primitive and basic needs of human beings: gambling. This allows http://pump.fun to survive well in both bull and bear markets and has relatively stable cash flow income.
Meanwhile, the positioning of http://friend.tech and Ordinals inscriptions is much more complex, making the narrative easy to disprove and thus harder to transcend cycles.
3⃣ http://pump.fun solves two problems at once:
a/ Standardization and simplification of token issuance in the primary market;
b/ Liquidity and attention acquisition in secondary market trading;
Although http://friend.tech addresses problem a, the product positioning of social media influence tokenization inadvertently sets a high threshold for token issuance in the primary market, forcing ordinary players to unfairly become exit liquidity for vested interests.
While http://friend.tech continues to use joint curves instead of AMM curves for secondary market pricing strategies, which helps attract market attention but significantly increases players' transaction costs and wear (with a single transaction cost as high as ~22%), it shortens the product's lifespan.
And Ordinals inscriptions have yet to effectively solve the above two issues.
Above.
