Why Can Some Platforms Still Make Profits Even After the Meme Wave Has Receded?

The craze for Meme tokens in the cryptocurrency market seems to have passed, but a certain platform has successfully launched tokens at this time and caused a sensation. This has prompted people to think about the timing of the Meme platform's token issuance and the reasons why it can still create waves after the end of the Meme bull cycle.

seize the last opportunity

The platform has chosen to issue tokens at this time to maximize its value as a Meme platform. Typically, the status of a Meme platform as a mainstream asset issuance platform should have ended when a similar project was launched on a well-known exchange. The popularity of Memes itself can be traced back to the birth of a certain political figure's related token in January of this year.

Subsequently, one platform parted ways with another platform and established different infrastructures, marking a split in industry consensus. Surprisingly, nearly half a year later, the token of that platform not only became the focus but also attracted multiple similar projects vying for liquidity. This is markedly different from the development models of other popular tracks such as DePIN, NFT, BTCFi, and L2, which typically do not maintain the same level of attention after the mainstream narrative ends.

A more common practice is to issue tokens directly when the industry's consensus is most concentrated, in order to maximize the use of market liquidity. For example, a project in the NFT field, a storage project in the DePIN field, and a mobile network project, as well as a project in the BTCFi field, etc. However, most of the liquidity related to Memes has been absorbed by a certain political figure's token. Theoretically, when a certain exchange launches a similar project, it should be the end of that platform, yet its token can still create a sensation.

The platform provides an almost perfect exit strategy for the soon-to-be-obsolete track, successfully capturing the last profits accumulated in the market.

The next feasible scenario

In the past, the crypto industry believed that being able to land meant moving towards large-scale adoption; now, landing seems to be more understood as being able to complete the final token issuance.

Although not everyone may be obsessed with Memes, as long as there are people willing to participate, Memes can maintain basic survival as a type of asset and launch platform. The market always needs a place to trade various quirky tokens.

From blue-chip NFTs to Genesis NFTs, from a certain political figure's token to a certain platform's token, an era has come to an end. In the small cycle of cryptocurrency, the Meme craze lasted for 6 months, much longer than many technical narratives that only lasted 2-3 months.

The only remaining puzzle is the specific parameters of the Bonding Curve. We understand the formula x*y=k of AMM DEX, but it is still unclear how the specific parameters of the Bonding Curve are derived. It is worth mentioning that a certain social platform also uses the Bonding Curve, and during the DeFi summer of 2020, it was actually a competition among the three models: AMM, order book, and Bonding Curve, each ultimately having its own place.

Another secret to the success of this platform is that the Bonding Curve enhances capital efficiency. Meme has never been just a new asset type; the platform's capital efficiency orientation is also the winning strategy in product design.

Conclusion

The current market focus has shifted to RWA and stablecoins, and continuing to pay attention to this platform may not be very meaningful. However, this platform may have better survival space compared to some single products, and Meme compared to NFT and BTCFi. The ideas of this platform are worth referencing.

From the very beginning, the founders must design a good exit path, not just simply issuing tokens on exchanges, but also considering whether they can find a suitable position behind the scenes after experiencing a surge in popularity on the grand stage of the cryptocurrency market.

Potential areas where similar situations may arise in the future include perpetual contract DEX, routing algorithms for DEX aggregators, trading matching algorithms for dark pool DEX, and liquidity "explosion" algorithms for on-chain options products. In particular, on-chain options currently face challenges similar to the early stages of Meme trading, where liquidity is too low and the traditional LP Token subsidy model seems ineffective.

On-chain options products also need innovation in their models, either by creating entirely new crypto products like Meme, or by modifying the model of perpetual contracts. Introducing a volatility index might be a good idea.