Author: Teddy Zheng Haosheng, Source: Author’s Twitter @TeddyAC01

Summary of Notcoin’s success: it can only be used as a reference, not copied.

Products cannot be copied

1. The user group cannot be copied

Notcoin is a user group that directly uses Telegram. What it does is to dig deep into the value of users. Telegram can increase the cost of haircuts, and probably nothing can scare off the studio at that time. The design of the Notcoin project serves those who don’t understand web3. The preliminary work of Ton makes onboarding easy. If a copycat is built on Ton, will it spend money to buy old users again? Now this track is definitely being targeted. If you don’t design a capital threshold, you’re afraid that it will be hollowed out.

2. The operational flywheel cannot be copied

Notcoin and Ton are deeply bound together. Notcoin brings traffic to Ton, and Ton tilts its operating resources toward Notcoin. Notcoin invests, and Ton collects. This phenomenon started this year with Solana, and all memes have the same pattern: Meme has an ecological niche. There is no Meme ecological niche on Ton, and other ecosystems do not have so many differentiated users.

3. The market environment cannot be replicated

A great project cannot be replicated; it is determined by the market.

Web3 projects are extremely economical in scale. Our market is a unified large market, and the market segmentation is not that large. Copycats are directly competing with the god-level platforms, and they cannot win or lose. If the god-level platform collapses, copycats will also collapse. Copycats cannot reach scale and cannot obtain traffic from exchanges, media, etc.

We are now in the middle and late stages of the bull market. It will take half a year for copycats to develop like Notcoin did, and there is no time.

Experience can be inherited

Design product processes according to target groups.

Telegram has 900 million monthly active users. Notcoin has added 35 million users in half a year. The remaining market is still huge. We need to use differentiated projects to onboard other users. The method should take into account the speed of onboarding and the differentiation of product coverage.

The fastest-growing projects at the moment are streaming media, short videos, and games. Among them, I would recommend short videos first.

I think we can launch a decentralized blood-sucking attack on mainstream video content through token economics. Scale first, then govern.

The recommendation algorithm is the core.

Coordinate the interests of multiple parties and reuse operational resources

Looking at Notcoin alone, its profit point is very late. It needs to activate enough users through airdrops, issue coins on large exchanges, and have liquidity before it can have operational value for market makers and gambling value for gamblers. According to the traditional market, the top player holds 60% of the market, the second player holds 20%, and the rest of the market is shared by others.

This kind of free, low-threshold method of mining people is actually not expensive per customer. Converting ordinary users into paying users requires additional screening and conversion.

Pepe has 6.1 billion FDV and 230,000 addresses; WIF has 3.3 billion FDV and 140,000 addresses; Slerf has 61,000 addresses and 155 million FDV

Notcoin has been developed for more than half a year, with a valuation of 1.2 billion, 35 million interactive accounts, and 1.59 million coin holding addresses.

To achieve the second place and a valuation of 400 million, at least 20 million interactive accounts and 900,000 coin holding addresses are required.

Notcoin is a project that makes the most of the Telegram user community. Apart from some commonly used wealth effect methods, it still has some special advantages over traditional online earning projects:

1. Real users. Notcoin is a zero-cost project developed based on the Telegram user community. The registration cost of Telegram users is not low. It requires phone and email binding, and traditional Web2 anti-fraud and account blocking methods. It is difficult for unofficial big users to form. Because it is a Meme coin, the airdrop mechanism is less likely to be taken advantage of by the studio. For those who take advantage of it, the time cost is very high. The authenticity of the users is the reason why the exchange is willing to take over.

2. Pi Network is also a project like this, but it lacks value accumulation and no one is willing to pay for it. But Ton and Notcoin can.

Notcoin can rely on Ton's account system and wallet system to pay. Ton is a peer-to-peer encrypted payment system with a smart contract system built on the Telegram social tool. Telegram is also developing mini apps such as applets and games, and developing payments, with the goal of further tapping the value of 800 million users. Notcoin does not make money, and even loses money. As long as users build up the habit of using encrypted assets, these data can be taken back in the traditional financial market.

https://finance.yahoo.com/news/telegram-co-founder-durov-says-061752014.html

3. Notcoin is very successful, but Notcoin's success may be accidental. The operating cost of the project is not high. First, the project activities are done together with the Ton ecosystem, and it is free to divert traffic from Ton. Development is simple, and the type of coin is meme. Ordinary people will find it difficult to find resources, but if you consider that this is part of Telegram's user conversion strategy, then these costs can be ignored. Telegram and Ton are open to trial and error.

4. Telegram’s threshold increases the cost of monetization, and the meme attribute lowers user expectations. In addition, time is exchanged for tokens, so there are not many studios that can really invest huge sums of money in monetization. In the absence of large investors, market makers will have better control over the market, and with the liquidity provided by large exchanges, it will be easier to negotiate with DWF.

5. Monetize traffic in various ways: Invest in games, invest in content, and create stories.

experience:

Lower costs: Costs are divided into development costs, operating costs, market-making costs, and time costs. The last three are the biggest.

The operating costs should be managed in combination with the company's own resources, and idle resources should be used flexibly. The target users of the project should be accurately identified to lower the threshold for users to join the new product.

By mining airdrops and utilizing Telegram's account system, the vast majority of coins can be more evenly distributed, and the market-making cost will be lower.

Observe data at any time, use data to cultivate the seeds, and use people instead of money. Find a way to achieve mass adoption by users. (Massive adoption of funds has already been done by Wall Street, and now everyone is doing mass adoption of people flow)

Increase revenue: Killing multiple birds with one stone is the core. Be able to tell better stories and sell traffic at a higher price.

Summarize:

If it is a single project operation, the cost will be higher.

For zero-cost projects, controlling the studio is the key. When the focus and heat are on, it is easier to be sniped by the studio.

Control the transparency of data and tell a good story about the data.

The bureau itself is about distribution. Exchanges have liquidity and need trading volume, blockchain infrastructure has money and operational activities, and needs active data and traffic, communities have traffic and need money, and retail investors need hope.