MEME Coin: Market Catalyst and Driving Force of Industry Evolution

Recently, there has been a viewpoint in the Web3 community that MEME coin has destroyed the current market cycle. As a long-time advocate of "technical narrative + long-termism," I believe it is necessary to present a different perspective from an objective standpoint: MEME coin is not the destroyer of the market, but rather a catalyst for accelerating the maturity of the industry.

The Arrival of the Attention Economy Era

The current market has shifted from a "technology is king" paradigm to a new model of "attention is king." The MEME coin is the most intuitive embodiment of this transition. Most tech projects take years to deliver the features promised in their roadmaps, while market investors have lost patience for waiting and trusting. This creates an opportunity window for the MEME coin to attract liquidity through short-term wealth effects.

Self-innovation of technology projects

The rise of MEME coin has actually forced technology projects to undergo self-reform. The era of attracting investments through financing valuation, technical packaging, and piling up concepts is over. Technology projects are compelled to return to substantive delivery because investors have experienced the "simple and straightforward, clearly defined wealth effect" return model brought by MEME coin, making it difficult to accept those "technically complex but with no actual delivery in the long term" projects.

Expand Market Boundaries

No matter how sophisticated the technical narrative is, it usually only attracts a group of elite individuals who understand the technology. What is needed for mass adoption is an interactive method that is simple, easy to understand, and can quickly form a consensus. The simplicity of MEME coin has brought a large number of new users to the crypto market, some of whom will inevitably engage in deeper ecological exploration, providing an unprecedented incremental user pool for technical projects and alleviating the long-standing "user scarcity" problem that technical projects face.

Natural Evolution of Market Cycles

The MEME craze is unlikely to span the entire market cycle, but the market vitality it releases will benefit multiple areas of the crypto ecosystem. The nature of profit-seeking funds determines that MEME coins cannot continuously generate wealth effects. After most people experience the duality of short-term wealth and going to zero, they will naturally seek more balanced investment targets.

By then, technology projects that truly solve practical problems, establish user stickiness, and have a clear business model will welcome a valuation reconstruction, completing the transition from concept to actual value. For technology projects, this is not an end, but the beginning of a rebirth through nirvana.

Challenge to Traditional Financing Models

The MEME coin essentially reconstructs the market's perception of the investment and financing model. The traditional venture capital-led financing method has created an unbalanced market pattern of "high valuation and low liquidity", which makes the token generation generally face a downward trend after the event, leaving little room for ordinary investors to hold and increase their value, and stifling the vision of retail investors to achieve financial freedom through crypto assets.

In contrast, despite the significant risks, MEME coin has reactivated market vitality with its transparent, simple, and egalitarian participation characteristics, prompting the market to return to a fairer and more transparent competitive environment. The shrinking market space for some venture capital institutions and their forced exit may be related to the increasing mainstream acceptance of MEME coin.