Author: Haotian
I wonder if everyone has thought about what is the "original sin" that has caused this wave of carnage on the chain? The answer is something that everyone knows is toxic, but still can't help but take a sip: the Pump-style MEME-ization of asset issuance.
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 trying. Combined with the market sentiment Fomo amplification effect after the external market breakout, the Pump-issued asset model became mainstream for a while.
However, the Pump-issued asset model is essentially:
1) A short-term industrialized assembly line of token issuance, 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, they just focus on mass production, and once the price drops, they start over.
Continuing this way, the "project parties" of token issuance have become the absolute upstream of the liquidity harvesting assembly 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 was ultimately too weak, these narratives had a relatively long market competition and digestion cycle, and the technical innovation, team strength, and operational accumulation would become value assessment indicators in the process. At the same time, things like grabbing airdrops, contributing to the ecosystem, and horizontal and vertical cooperation of projects were 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, and market participants no longer believe in the power of technological innovation, nor do they pursue the long-term PVE growth concept, but only engage in the zero-sum PVP short-term interest dilemma, destroying the technological innovation value system that the crypto world relies on.
3) An over-reliance on the attention Fomo economy, originally the vertical subdivision narratives of Crypto all had different communities, and each track had a certain amount of capital and users, but when the project explodes, the user's attention will be severely fragmented, 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 mentality and become the helpless small investors, fighting against the big players, and eating the youth. The project parties will also face huge selling pressure from the start of the 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 to enter the market and provide a bottom line for early innovative technologies; attract innovative regular teams to layout, bring real value creation; linearly release the chips and 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 they can't help but take a sip, because it grasps the greed, speculation, and profit-seeking of human nature.
