The "original sin" that has caused this wave of carnage on the chain is something that everyone knows is toxic, but still can't help but take a sip of: the Pump-style MEME asset issuance model.
Initially, the Pump-style internal and external market launch model allowed many small investors to win a relatively high probability of investment multiples by simply sitting and trial-and-error, coupled with the market sentiment Fomo amplification effect after the external market was broken out, making the Pump asset issuance model a mainstream approach for a time.
However, the Pump asset issuance model is essentially:
1) A short-term industrialized token production line, this token issuance model features standardized operations, low entry barriers, and rapid mass production, which has led to the fact that most projects issue tokens without a complete project plan, let alone talk about technological innovation and product implementation, just focusing on mass production, and once the price drops, they start over.
This way, the "project party" of token issuance has become the absolute upstream of the liquidity harvesting production line, while the downstream investors have become the "chips", forever trapped in a vicious circle of losing money no matter what they buy or do.
2) A deconstruction of the past "technical narrative", the previous two cycles also had some MEME tokens without real meaning, but the mainstream market was still in awe of the decentralized technical narrative, from the layer1 pursuit of high-performance TPS battles, to the layer2 Rollup public chain construction for the purpose of expansion, to the iteration of technical narratives such as modularity, account abstraction, chain abstraction, Staking, reStaking, etc.
Although the application implementation is ultimately too weak, these narratives have a relatively long market competition and digestion cycle, and the technical innovation, team strength, and operational accumulation in the process will become value evaluation indicators, and at the same time, things like grabbing airdrops, Grant ecosystem contributions, and horizontal and vertical project collaborations are sufficient, suitable for the value orientation of long-term Build.
However, after the Pump, the nihilism of MEME-ization has completely changed the industry ecology, with market participants no longer believing in the power of technological innovation, and even no longer pursuing the long-term PVE growth concept, but only trapped in the zero-sum game of short-term PVP interests, destroying the technological innovation value system that the crypto industry has relied on.
3) An over-reliance on the attention Fomo economy, originally the vertical sub-sector narratives in Crypto all had their own communities, with a certain amount of capital and users in each track, but when the project explodes, the user's attention will be severely fragmented and scattered, and almost everyone's cognition and decision-making will eventually be abstracted into: When CA, blind rush.
This will lead to attention speculation becoming the core grip, and the conspiracy groups skilled at manipulating information asymmetry will become the behind-the-scenes manipulators. In the long run, most users in the market will be forced to lose the holder mindset and become the P-small investors who struggle with the big players, eating the youth; and the project parties will face huge selling pressure from the start of TGE, creating a vicious cycle of TGE being the peak.
How to break the deadlock? To put it simply, there is only one way: embrace VC institutions entering the market to underpin early innovative technologies; attract innovative regular teams to layout, bringing real value creation; linearly release the chips to extend the project's life cycle; cultivate a community with a long-term mindset, etc.
It sounds simple, but it's not easy to push forward, the market needs a long cycle of natural evolution.
As I said at the beginning, Pump is toxic, but most people actually don't want to admit it's toxic, and can't help but take a sip, because it grasps the greed, speculation and profit-seeking of human nature.
