Web3 venture accelerator AllianceDAO co-founders Imron Khan and Qiao Wang stated in the latest Podcast that the Bit cryptocurrency market has been turbulent recently, with the Meme Coin storm, trading scandals, and even Trump issuing his own Bit, causing market sentiment to be in complete chaos. At the same time, the Bit startup ecosystem is also searching for a new direction, and whether AI and DeFi can usher in the next wave is worth exploring in this major industry transformation.

The Meme Coin craze from Trump issuing Bit to market collapse, who is the behind-the-scenes pusher

One of the hottest topics in the Bit market recently is the Meme Coin TRUMP issued by US President Donald Trump. However, behind this "feast" lies a lot of controversy and scandals.

According to market news, the issuance process of TRUMP is full of doubts, as 80% of the supply is suspected to be controlled by insiders, and the airdrop rewards are far lower than market expectations, making many investors believe that this is just another means for Trump to make money.

(Trump responds to $TRUMP Meme Coin: I don't know much about it, billions of dollars is just small change)

The Argentine president also issued LIBRA to cause trouble, exposing insider trading to manipulate market prices

At the same time, the Meme Coin market has also exposed insider trading scandals. Argentine President Javier Milei was accused of using insider information to buy and sell his own issued Meme Coin LIBRA, manipulating market prices and causing a series of Meme Coins to plummet. Venture capital firm Kelsier Ventures was also involved, with its trading strategy allegedly involving sniping, i.e. getting ahead of regular investors to buy low and sell high for profit.

"This is basically a giant gambling hall, the exchanges are casinos, and we are the chips," Wang said bluntly.

But it is worth noting that this wave of Meme Coin craze unexpectedly drove mainstream capital to pay attention to the Bit market, including some US state governments starting to discuss incorporating Bit into their reserve assets, and even traditional investment institutions are quietly entering the market.

(Searching for the behind-the-scenes manipulator of Argentine President's Meme Coin LIBRA: Latest relationship map, KIP and Kelsier's response)

The four major rules of the Bit market, the business model of Blockchain may be standardized

With the rapid changes in the market, many entrepreneurs are beginning to reflect on what the true value of Blockchain is. Some venture capital firms and practitioners also believe that the business model of Bit has actually been fixed, mainly revolving around four core applications:

1. Trading: Such as Uniswap, Jupiter, providing cryptocurrency trading and exchange services.
2. Lending: Such as Aave, Compound, allowing users to pledge or lend out crypto assets for fund utilization.
3. Stablecoin: Such as USDT, USDC, providing the market with a stable value storage tool.
4. Minting: Such as NFT platforms, decentralized infrastructure DePIN, able to create and freely circulate digital assets.

"Everyone has been talking about Web3 and the blockchain revolution, but in the end, we still come back to the financial aspect." Khan said this is not a bad thing, because the financial market is large enough, the problem is what new models we can still create. This also makes people start to wonder whether Web3 is just a concept hype, and the ultimate development will still return to the traditional financial market.

AI becomes a new outlet for crypto startups, AI Crypto may become the next wave

When the cryptocurrency market is in a low market sentiment, the rise of AI seems to have become a new outlet for Web3 entrepreneurs. In the latest accelerator program of AllianceDAO, it was found that many startup teams are no longer focusing on pure blockchain applications, but are combining AI technology, and some teams have completely shifted to the AI field. The current main opportunities for AI Crypto include:

1. AI and Education: Using AI voice and dialogue technology to provide personalized educational assistants to make learning more efficient for students from elementary to high school.
2. AI and Advertising: Automatically generating brand advertisements to reduce production costs and improve marketing efficiency.
3. AI and Scientific Research: Conducting AI-generated automatic reviews of academic papers to improve transparency and efficiency in academia.
4. AI and Application Development: Such as Replit for Crypto, allowing anyone to quickly generate blockchain applications through AI.

"We no longer think of entrepreneurship as crypto applications or AI applications, but as AI-empowered applications or crypto-empowered applications." Wang said, this is the only way to truly find the pain points of the market, rather than doing blockchain for the sake of blockchain, or doing AI for the sake of AI.

(AI combined with crypto exaggerated? AllianceDAO analyzes the crypto market and changes in US policy, the fierce battle between L1/L2 public chains)

The crypto market still has the last bull market, institutional funds are quietly entering the market

Although the meme coin market is cooling down, Bitcoin and mainstream crypto assets are still hovering around their highs. Two observers have noticed that the crypto market may still have a "last bull market". The key indicators are as follows:

• Well-known Wall Street hedge fund manager Paul Jones has made Bitcoin ETF his largest holding, indicating that traditional investors' confidence in crypto assets has increased.
• The US Federal Reserve (FED) has signaled that it may end its tightening policy, and market liquidity is expected to become more loose.
• The concept of corporate and government Bitcoin strategic reserves (SBR) has emerged, and Bitcoin may become a reserve asset similar to gold.

"This may be the last crazy bull market, after which Bitcoin will enter a mature period similar to gold." Wang said, this will be a critical moment for Bitcoin to truly become a part of the global financial system.

(Wall Street Leviathan Enters! Paul Jones: If I had to choose the profit-maximizing strategy, I would choose Bitcoin)

From anti-bank to investment target, where will the crypto future go

The two reviewed the crypto market from 2013 to 2020, and they said that the entrepreneurs at that time were full of passion and tried to break the traditional financial system. But now, this revolution seems to be taken over by large institutions and governments, and the once anti-bank movement has now become the next investment target of Wall Street.

"We once wanted to overthrow the banks, and now the banks are buying us." Wang sighed.

However, regardless of how the market changes, the crypto market is still full of opportunities. The question is, what will be the next "big trend"? Will it be AI, DeFi applications, or even new types of financial instruments, and whether they can once again drive market innovation. The two said this will be the biggest concern for all entrepreneurs and investors in the coming years.