In this industry, I have always emphasized two key points: sustainability and cash flow. BananaGunBot stands out because of these two points. This article will deeply analyze the reasons behind its success and why cash flow and sustainability are the key to the survival of a project.
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If you haven't noticed BananaGunBot yet, you may be missing out on a gem. I've been emphasizing two key factors: sustainability and cash flow. @BananaGunBot will be the biggest winner in this cycle.
Let's first look at its revenue compared to its market cap:
- Revenue: $4M for $BANANA and $4.5M for $AAVE
- Market capitalization: $BANANA is $160M, $AAVE is $2B
Although $BANANA's market cap is only one-tenth of $AAVE's, its revenue is almost the same. What does this striking gap illustrate? The importance of sustainability and cash flow in the current market environment.
I have been speaking to multiple project teams recently and have learned that we must seriously consider cash flow and sustainability in this space. If we were to do a reality check right now, I would bet that 80% of projects would be forced to surrender. The reason is simple: without cash flow, there is no business.
Here are some common questions I hear in discussions with other projects:
- "We only have three months of cash left to burn."
- “We are very strong but need $20,000 per month to maintain the market and that is not in the budget.”
- "We have $0 in daily expense income, but $15,000 in daily expenses."
- "We hired four team members and can't let them go, so we're working on another round of funding."
Do these questions sound familiar? They are everywhere.
So, what do these questions actually mean?
1. Token addiction: Too many projects treat their tokens as everything, when in reality it is just a condiment. You need to diversify your income sources.
2. Putting the cart before the horse: I often see projects expand too quickly, hire unsustainable teams, and go public too soon. These are all wrong decisions that increase financial burdens.
3. Market illusion: In a true bull market, liquidity is abundant and it doesn’t matter what you do. But we are not in that kind of market now. Cash flow is the key to life and death.
4. Money-burning frenzy: Spending $15,000 a day with no income? This is not a business, it's a ticking time bomb.
5. Runway Reality: Three months of funding is not a strategy, it’s the road to hell.
We need to get back to basics. Real businesses that generate real income, have diversified income streams, and are not dependent on the miracle of a bull market.
It’s time for a serious reality check. Ask yourself:
- Are we generating actual revenue or are we just burning cash?
- Do we have diversified revenue streams or are we completely dependent on tokens?
- Do our expenses match our actual income?
- Do we have a realistic plan to achieve sustainability or are we waiting for a market miracle?
In a bear market, cash flow is king. Many projects are not ready for this.
So what’s the solution? It’s not fancy, but it works:
1. Diversify your income sources. Owning tokens is not enough.
2. Start small and scale up. You don’t need VC money to validate your concept.
3. Focus on generating real, sustainable cash flow before scaling.
4. Be realistic about your spending and financial runway.
That is exactly what the BananaGunBot team did. Study their success, learn and make the right decision.
