On August 20, a phenomenal game “Black Myth: Wukong” was officially launched, instantly breaking through 2 million online players on the Steam platform and directly topping the rankings.
The circle of friends is full of dynamic game screens of the tanned mythical Monkey King, and the popularity is simply overwhelming.
As a marketing master, Justin Sun certainly would not miss this wave of traffic dividends. He first gave away 100 activation codes for "Black Myth: Wukong" for free on Twitter.
Then he changed the Twitter account's avatar to Sun Wukong. This series of operations directly ignited market sentiment and led to a surge in the price of Sun Ge's tokens.
At the same time, Binance also seized the opportunity and launched the meme coin DOGS of the Ton ecosystem.
Although on the surface there seems to be no direct connection between the two, in fact they are based on the same market logic. So why is Meme coin so popular? Why did Binance list DOGS? And what is the logic of Binance listing coins?
In today's episode, we will analyze these issues in detail.
1. Why is Meme Coin so popular?
Meme coins are unique in the cryptocurrency market, being more of a cultural phenomenon that quickly attracts a lot of attention and funding.
The success of Meme coins is mainly due to the spread of social media and the support of the community, which enables them to gain huge market influence in a short period of time and bring a large number of new users to the crypto market.
For example, at the beginning of 2021, the price of Dogecoin rose from less than $0.01 to $0.68 in May, an increase of more than 6,800%.
The number of Dogecoin holding addresses increased from about 3 million to more than 4 million between April and May 2021. Musk mentioned Dogecoin many times on Twitter, causing its price to rise sharply.
For example, in April 2021, Musk posted a tweet about Dogecoin, causing its price to rise by more than 20% in 24 hours.
Moreover, Dogecoin has a very active community, and these community members are promoting and promoting it in various ways. For example, the dogecoin community on Reddit played a key role in the promotion of Dogecoin.
In addition to Dogecoin, Shiba Inu Coin also performed well. The price of Shiba Inu Coin rose from US$0.0000006 to US$0.0000388 in May 2021, an increase of more than 6,400%.
The number of Shiba Inu Coin holding addresses increased from about 500,000 to more than 1 million in May 2021. The success of Shiba Inu Coin is also inseparable from the promotion of social media.
For example, Ethereum founder Vitalik Buterin donated 50 trillion Shiba Inu coins to India's COVID-19 relief fund in May 2021, an event that further boosted Shiba Inu coin prices.
Therefore, it can be seen that the value of Meme coin mainly comes from the consensus of the community. As long as everyone recognizes it, its value will continue to rise, and it brings more profit expectations and emotional value to retail investors.
Many people do not understand blockchain technology, but when they see the skyrocketing price of coins and the wealth effect, they will rush into the market immediately.
It should be noted that Meme coin is characterized by high risk and high volatility, and it has no actual use value and is completely driven by market sentiment. Therefore, risk management must be done well and you cannot invest heavily in a certain Meme coin project.
2. Why does Binance want to list DOGS?
Recently, Binance announced the launch of Launchpool’s 57th project, Dogs, which is a MEME coin project based on the Telegram and TON ecosystem.
Its logo is a cute black and white puppy, which is inspired by Spotty, the pet dog of the founder of TON.
The original intention of this project is to use the large number of users in the TON ecosystem to create a cryptocurrency that is both interesting and accessible to everyone.
What is unique about DOGS compared to other meme coins?
DOGS is a dark horse in the TON ecosystem since July. Unlike Notcoin, Hamster Kombat and other projects that require users to play mini-games to earn points, DOGS uses a completely new way to determine the airdrop share.
It calculates points through an algorithm based on the user's usage time and activity on Telegram, rather than relying on the user's active participation.
This "free" airdrop method quickly attracted widespread attention from the community. Within less than 10 days of its launch, DOGS attracted more than 10 million users to join its community channel.
As of August 22, the channel has more than 16 million users, making it the fourth largest Telegram channel in the world.
In addition to its unique airdrop calculation method, DOGS is also the project with the fastest airdrop distribution speed in Telegram ecosystem games recently.
According to official news, the DOGS airdrop claim period will be extended to August 23, and TGE and listing will be carried out on August 26.
In contrast, the TGE time of previously popular mini-games such as Hamster Kombat and tapsswap has not yet been determined after attracting user interaction for several months.
Hamster Fight was even exposed by Russian media for internal strife within the team, and the subsequent revelations were deleted.
According to the official announcement, the total amount of DOGS tokens is limited to 550 billion, of which 81.5% belongs to the community (no lock-up period), 10% is used for the team and future development (12-month lock-up period), and 8.5% is used for CEX and DEX liquidity and listing-related activities.
Therefore, it can be seen that the popularity of the DOGS project is mainly due to its low threshold and its viral marketing method.
Currently, the market’s expectations for TON ecosystem to break out of the circle again are all focused on the Meme coin project, and the emergence of DOGS just meets this demand.
At the same time, Binance’s willingness to launch a new Launchpool project at this time means that Binance believes that the market has the potential to continue to grow, which may be a signal that the market is about to recover.
Why did Binance choose DOGS?
Because DOGS has become a popular project in the market, in this era where traffic is king, the world's four major exchanges are competing to list DOGS.
In addition to the driving force of capital, the core reason is that Telegram's traffic is too large, which can bring a large number of new users to the exchange.
This year, there is very little new traffic in the crypto market, and almost all of it is the existing users who are playing the game. From Binance launching not, ton to dogs, the purpose is to gain more new traffic.
At present, Binance is vigorously supporting the projects in the Ton ecosystem. It has not only launched not, ton, and dogs, but also invested in the Ton ecosystem's mini-game catizen.
3. What is the logic behind Binance listing coins?
Binance’s listing strategy not only looks at the quality and long-term potential of the project, but also takes into account market demand and user behavior.
Binance once tried to launch projects that they believed to be high-quality and had long-term potential, but the market response was not ideal and sales results were far below expectations.
On the contrary, the Meme Coin project has attracted a large number of users and trading volume in a short period of time. From the perspective of the exchange, it is difficult for Binance to completely abandon this field.
This is not only a choice of capital, but also the result of market user behavior. What the market wants, the exchange must provide.
Recently, I also discovered some rules for listing coins on Binance.
Binance likes to launch several projects in the same section in succession, and its coin listing rhythm is usually synchronized with market hotspots.
For example, everyone has been discussing the Ton ecosystem recently, and Binance has successively launched NOT, BANANA, TON and DOGS.
When GameFi was popular in February, Binance launched several GameFi projects, including RONIN, PIXEL and PORTAL.
When the Meme project on the SOL chain became popular in March, Binance launched BOME and WIF.
Therefore, when a sector becomes a hot topic, it is easier for projects in it to be launched. Binance likes hot topics, new sectors, and several projects to be launched in a row on a sector. These preferences are already very obvious.
The reason behind this may be that Binance wants to support a certain sector in a short period of time to create a hot spot in the market and drive transactions.
Therefore, it can be seen that when a new section launches its first project, other excellent projects in the same section are likely to be launched on Binance one after another.
The new projects launched on Binance are basically new sectors in this bull market, such as TON ecology, Layer2, AI, Bitcoin ecology, re-staking, SOL ecology and modularization.
Some sectors existed in the previous bull market, but this bull market has new expectations for them, such as the GameFi and Meme sectors.
So, we can focus on these new hot sectors.
Binance's coin listing decisions are determined by market demand, business logic, and user voting. They also need to find a balance between short-term gains and long-term potential to meet market demand and remain competitive.
4. Summary
So in general, Biyan fully supports the TON ecosystem and launches DOGS mainly to attract traffic.
Now is the era of traffic being king. Telegram has 900 million active users and can be said to be the traffic entrance for Web2 to enter Web3.
The exchanges are also trying to expand the market. Without new users, existing users will have to compete with each other, and in the end it will be difficult for anyone to make money.
Binance is willing to launch a new Launchpool project at this time, which shows that Binance believes that the market still has potential for growth. This may be a signal that the market is about to recover and is worthy of our study and attention.
But it should be noted that playing with Meme coins must follow a logic and not be greedy. You can refer to Buffett's investment logic and observe market sentiment more. When market sentiment is collectively crazy and valuations are too high, at least get your principal back first.
What Meme coin projects do you think are worth paying attention to? Welcome to leave a message in the comment area, we can discuss together. For more useful content, you can join the QQ group: 580869654.
