With most crypto narratives weak, memes are undoubtedly the largest traffic area in this bull market. Major exchanges, including major exchanges, use this sector as one of the means to leverage traffic and win community reputation. Recently, the leading exchange Binance has been questioned and criticized by the community after launching multiple meme coins one after another. The biggest controversy has become whether to follow hot traffic or stick to narrative value.
Exchanges take sides to intensify meme capitalization war
The crypto market has fallen into a crisis of liquidity depletion, and memes have turned into white horses to rescue the market, reappearing the "gold rush" and showing strong market performance. According to crypto analyst arndxt, only 42 projects have outperformed Bitcoin this year, with 11 of the top 15 being meme coins.
The outbreak of this round of memes originated from the community’s dissatisfaction and resistance to the VC coin model, which satisfied the general public’s imagination of fair issuance and grassroots atmosphere. This also forced exchanges such as Binance to change their currency listing logic.
Take Binance as an example. In just one month, Binance has successively launched the spot and contracts of multiple meme projects such as BRETT, DOGS, POPCAT, NEIRO, HMSTR and Neiro, and even launched 3 meme projects at the same time in one day, covering Base, TON and Ethereum are industries. Of course, this also confirms from the side that Solana is losing its dominance in the meme industry.
Affected by the exchange's launch, these meme coins have experienced a sharp rise. For example, after Neiro announced its listing on Binance, its market value increased from tens of millions of dollars to over $300 million today.
However, along with the huge wealth effect, the collective launch of meme coins by exchanges has also caused huge controversy. On the one hand, there’s the battle of uppercase and lowercase memes of the same name. For example, because Binance, OKX, etc. launched the uppercase NEIRO contract, the project skyrocketed in several days. Due to the rat warehouse problem, this caused dissatisfaction among the lowercase Neiro community and also caused the community to question the value of currency listing on the exchange.
In response to this, Binance co-founder He Yi’s latest response said, “In the dispute between big and small neiros, it is also because of the criticism from the community that we are more reflective about what are good memes. If the nature of the meme community is something else, A "GameStop", the tokens are highly concentrated, and the price has been inflated by Pump. Is it still a meme that the bubble will burst? Or is it Ponzi wearing a meme coat, so there are a few relative tokens? Among the scattered projects and meme projects with low market value, more than a dozen projects were initially screened, and many of them failed due to compliance review and token concentration. ”
Crypto KOL @neso explained this capitalization phenomenon. In fact, the various capitalization and punctuation coins that have appeared recently are only a small part of the meme coins in terms of market value and holder size. They are also a stage. Some characteristics of sex hot coins do not represent the mainstream, let alone all. There are still many high-quality memes and projects with strong community consensus on the market, but Binance and OKX have not paid attention to them. Maybe it's because of interests or review standards, maybe they're stuck in some kind of information cocoon. In the long term, meme coins that focus on the spread of meme culture, meme brand building, and the cultivation of community culture will eventually have the opportunity to succeed and cross the cycle.
Do high-frequency online memes guide market trends? The exchange’s currency listing logic is being questioned
On the other hand, exchanges including Binance have launched meme coins so frequently, which has also been questioned by the outside world as influencing the market direction.
"Meme coins are to a large extent more like gambling products. Although one of the natural properties of encryption is to stimulate dopamine secretion, memes can do this better. But if most industry builders go By creating this kind of thing, even leading exchanges tend to provide greater stimulus space for meme coins, and the encryption industry will gradually become a gambling den. Of course, there are now a large number of projects other than memes. There are also problems. Excessive valuations and the accumulation of stories that cannot be implemented to create value make the market look lively, but there are not many good targets to choose from. BroLeon, the crypto KOL, said frankly in a post.
@neso believes that meme currency has changed a lot from the previous cycle and is entering a 2.0 stage. He hopes that CEX can deeply observe and understand the changes and continue to promote the development of the track instead of really Think of it only as a tool to attract traffic and create hot spots. Otherwise, their influence in meme coins may continue to be diminished.
In fact, OKX CEO Star also posted a question about the listing of tokens on the exchange. What is the original intention of the cryptocurrency exchange List Token? The only thing some Token project parties do after the List arrives at the exchange is to release, reduce holdings, and harvest users. Exchanges should not become an accomplice of such projects. Since there is currently no regulation on listing and holding reduction, how to protect this market? This is something worthy of reflection by the entire industry.
He Yize responded to Binance’s basic currency listing structure and process by saying that Binance listing projects are mainly divided into three categories:
Provide items that users need: As a trading platform, it cannot be good for itself, it must be good for users;
Projects that have been around for a long time: It is not Binance that determines the price of tokens, but the token model, circulation, buying and selling. These high-valued projects of top teams have a large number of MMs around them who are willing to advise them to maintain them. With its high market capitalization, a large number of exchanges are flocking to it, especially AMM, which has brought about the rise of DEX. It is not impossible without a trading platform. But it is undeniable that while other projects rise and fall, they live longer and have more opportunities;
Projects with business logic: Whether Web2 or Web3, the essence of entrepreneurship is to create what the world needs. We like projects with solid business models and income. We hope to have a reliable team that has entrepreneurial potential and can take responsibility. We also hope that your valuation will not be too high and that you can take care of the community to grow together. We want you to empower your tokens because if you stand with your users, your users will stand with you.
"The dilemma reflected behind Binance's listing may also be the huge bottleneck and confusion faced by the current market. Now it seems that no one knows where the next innovation will come from." Crypto KOL qinbafrank believes that the current currency market may have changed from When the "anchor" is removed from the state of being "anchored", the past history no longer has the meaning of reference, and the future direction is plunged into great confusion. What we should discuss more is: the industry has changed from "anchored" to "anchorless". ", how to "find anchor" again, and which are more valuable and meaningful attempts. The currency market's search for an "anchor" again is more difficult and bumpy than that of the U.S. stock market. There is no value in reinventing the wheel, falsely high valuations pushed up by the primary market, unreasonable issuance structures with low circulation and high FDV, and project incompetence. Controlling bottomless dumping, etc., have all led to the current bleak market and are also the crux of the problem. Starting from these aspects and guiding and protecting step by step, the results may not always be as expected, but it is also correcting deviations and the only way for us to re-find anchors and correct chaos.
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
This article is reprinted with permission from: "PANews"
Original author: Nancy, PANews
