Meme Coin: Catalyst or Destroyer?

Recently, the cryptocurrency community has been embroiled in controversies regarding Meme coins. Although I have always advocated for "technology narrative and long-termism", objectively speaking, Meme coins have not "destroyed" this market cycle; rather, they have acted as a catalyst to accelerate the industry's maturation.

First, the market has shifted from "technology is king" to "attention is king." Meme coins perfectly embody this transition. Most technology projects take years to realize their roadmap, while the market has lost patience. This has given Meme coins the opportunity to attract liquidity through short-term wealth effects.

Secondly, Meme coins force technology projects to innovate themselves. The previous model relying on financing valuation and conceptual packaging can no longer be sustained. Technology projects are compelled to return to substantive delivery, as investors have already experienced the advantages brought by Meme coins, which are "simple and straightforward, with a clear wealth effect."

Moreover, Meme coins have expanded the market boundaries. Technical projects often attract elite groups, while mass adoption requires simple and comprehensible methods that can quickly form consensus. Meme coins attract a large number of ordinary users, some of whom will inevitably delve deeper into the ecosystem, bringing new user growth to technical projects.

It is worth noting that the Meme craze will not last throughout the entire cycle, but the market vitality it inspires will benefit the entire crypto ecosystem. When most people have experienced short-term wealth and then zero, they will naturally seek more balanced investment targets. At that time, technology projects that truly solve practical problems, establish user stickiness, and have a clear business model will welcome a valuation reconstruction.

Finally, Meme coins have reshaped the market structure. The past financing model dominated by venture capital resulted in a "high valuation, low circulation" distorted market, leaving ordinary investors with almost no profit space. In contrast, Meme coins, with their characteristics of transparency, simplicity, and equal participation, have re-energized the market and created a fairer and more transparent competitive environment.

In summary, Meme coin should not be seen as a disruptor of the cycle, but rather as an important force driving the evolution of the industry. It has not only changed the market landscape but also paved the way for the future development of technological projects.