Meme Coin Did Not Ruin This Cycle, But Instead Accelerated the Maturity of the Industry as a Market Catalyst

Although I have been calling for "technical narrative + long-termism" most of the time, I still want to objectively sing a different tune

input: I saw someone in the English community saying that Meme Coin ruined this cycle. Although I have been calling for “technical narrative + long-termism” most of the time, I still want to objectively sing a different tune: Meme Coin did not “ruin” this cycle, but instead accelerated the maturity of the industry as a market catalyst:

1) The market has transitioned from “technology is king” to “attention is king”, and Meme Coin has become the most intuitive embodiment of this transformation.

Most technology-narrative projects have a roadmap delivery cycle of three to five years. The market has lost the patience to wait, believe, and entrust, so it has given Meme Coin a time window to attract liquidity through the short-term wealth Fomo effect.

2) Meme Coin forces the technology narrative to innovate itself.

The past VC coin “technology packaging” involution model has reached a dead end. The era of harvesting leeks by financing valuation, technology packaging, and concept stacking is over. Technology projects are forced to return to real delivery, because investors have tasted the sweetness of “simple and straightforward, clear wealth effect” in Meme Coin, and can no longer accept those “technically complex but long-term no delivery” projects.

3) Meme Coin has expanded the boundaries and foundation of the entire market.

No matter how sophisticated the technical narrative is, it can only attract a small elite group who can understand it. Mass Adoption requires an interactive method that is simple, easy to understand and can quickly generate consensus.

When a large number of ordinary users enter the market due to Meme Coin, some of them will inevitably conduct deeper ecological exploration, which will bring an unprecedented incremental user pool to technology projects and solve the long-standing dilemma of “no one using” technology projects.

4) The meme craze will not cover the entire cycle, but its overflowing market vitality will benefit most of the crypto ecosystem.

The nature of hot money seeking profits determines that Meme Coin cannot continue to generate wealth effects. When most people have seen the two sides of short-term wealth and zero return, they will naturally look for more balanced investment targets (tend to be more stable investors).

At that time, technology projects that have truly solved practical problems, established user stickiness, and have a clear business model will usher in valuation reconstruction and complete the transformation from concept to value. Therefore, for the technology narrative, this is not the end, but the beginning of nirvana rebirth.

5) Meme Coin is a complete reshuffle of the high FDV and low circulation model of VC coins.

In the past, the VC-dominated financing model created a deformed market structure of “high valuation and low circulation”, which led to a general decline after TGE. This market structure left almost no room for ordinary investors to increase their holdings, and killed the Crypto dream of retail investors to get rich by holding coins.

On the contrary, although the risks are huge, Meme Coin, with its transparent, simple and equal participation of everyone, has reawakened the vitality of the market and returned the market to a more fair and transparent competition environment. It is hard to say that the shrinking market space and forced withdrawal of some VC institutions are related to the increasing mainstreaming of MEME coins.output: people often discuss how quickly the cryptocurrency market is changing, but I think the past six months have been particularly interesting. We've seen a clear shift in investor preferences, and with it, a new stage in the development of the industry.

I've been a strong advocate for focusing on the technical narrative and the long-term vision for blockchain projects. However, I also believe in being objective and open to different perspectives.

Recently, I've seen some members of the English community discussing how they believe meme coins "ruined" this cycle. While I largely disagree with that assessment, I do think it highlights an important point: meme coins have certainly accelerated the maturity of the industry as a market catalyst.

Here's how I see it:

1. The market has transitioned from "technology is king" to "attention is king," and meme coins have become the most logical embodiment of this transformation. Most technology projects have a roadmap delivery cycle of three to five years, which feels like an eternity in the fast-paced crypto market.

With technology projects, there's an element of trust and patience required that investors have largely lost interest in. Instead, they've flocked to meme coins, granting them a time window to attract liquidity through the short-term wealth Fomo effect. This shift in investor focus has pushed technology projects to innovate and adapt.

2. The past model of VCs heavily investing in promising technology projects, which are then packaged and sold to the wider market, has largely run its course. In the early days of crypto, there was an involutionary aspect to this model, with projects becoming increasingly focused on securing large amounts of funding and presenting their projects in the best possible light