GMGN’s transaction fees have shrunk significantly, and whether it can survive has sparked heated discussions in the market?

The MEME coin market has cooled down, and GMGN's transaction fees have plummeted

With the MEME coin market frenzy subsiding, GMGN, a platform specialized in MEME coin trading, has seen a significant drop in its transaction fee revenue, causing many investors to worry about whether GMGN can maintain its operations. According to the latest data, GMGN's annualized transaction fee revenue is $93.98 million, but the chart shows a clear decline in its revenue.

GMGN had risen rapidly due to the booming MEME coin market, but when the market sentiment cooled down, the platform's trading volume and transaction fee revenue shrank noticeably, leading many netizens to question whether GMGN can survive in the long run.

Mask Network founder Suji speaks out: GMGN's problem is not burning money, but not burning enough

Regarding GMGN's current situation, Mask Network founder Suji expressed his views. He believes that GMGN is not a bad product, and although he doesn't trade often, GMGN is one of the few trading tools he uses, and its social features are also highly attractive. However, Suji is concerned that GMGN may face more severe competition challenges, as "this is a super track, and in such a market environment, a good product alone is not enough, it also needs sufficient capital leverage and market operations."

Suji used Xiaomi Mi Chat as an example, pointing out that although Xiaomi had leading technology, it was ultimately surpassed by Tencent WeChat due to insufficient capital and market promotion. He believes that GMGN is now facing similar challenges, and in this highly competitive market, GMGN needs not only stable development, but a "rabid dog" strategy - increasing capital investment, enhancing market offensive, and even "scaring off competitors".

Is GMGN really 'not burning enough money'? Suji points out the financing dilemma

Suji further analyzed that GMGN has created $60 million in profits in less than a year, which is quite impressive in a normal market environment, but compared to the 2021 bull market, this capital scale is still relatively insufficient. He mentioned: "This figure is actually only the amount of funds Mask Network raised in three days during the 2021 bull market."

He believes that GMGN's biggest problem is that it failed to conduct large-scale financing when the market was booming. "In the current market environment, it is almost impossible for GMGN to raise $100 million." This means that GMGN may lack sufficient capital to cope with the fierce price war and market expansion in the face of potential "dog-eat-dog" market competition in the future.

Market competition intensifies, where should GMGN go in the future?

Suji used Farcaster as an example, pointing out that although the product's technical and market performance is not as impressive as GMGN's, its capital on the books is nearly three times that of GMGN, indicating that "big money still needs to be raised from the capital market, not just relying on product profitability." This means that if GMGN fails to quickly raise enough capital in the future, it may be at a disadvantage in market competition.

In summary, GMGN's current biggest challenge is not the problem of the product itself, but the problem of capital operation and market strategy. Whether GMGN can find new financing channels or adjust its market strategy to cope with competition will be the key. For investors, GMGN's next development is worth close attention.