Author: LGHT for The Network Company Source: paragraph Translation: Shan Oppa, Golden Finance

In encryption There are two obvious characteristics in the market that make me think that someone is either a novice or is destined to self-destruct: 1. Blind, endless sales of assets

2. Lack of market positioning and attention distribution with clear direction

Simply put, It is the follower of the "buy this" sect, or the extremist of the "no practicality" sect.

The market is not your back garden

The ideas shared between friends are significantly different from the economic opponents in the market, even if these economic opponents are more like allies than competition .

The market is cruel and ruthless. It is about profits, liquid capital and resources, and it means life and death.

If you think I am exaggerating, you can check the main cause of death in the war - hunger, that is, the collapse of the supply chain.

In the Western world, marketers are often dismissed, and topics such as sales, distribution, production and financing are often ridiculed (sometimes indeed because of abuse).

But we often ignore some facts:

•The farmers we respect are actually The creator of the market.

•The charities we trust are actually beneficiaries of the market.

The essence of the market is large-scale human collaboration. As the Cluetrain Declaration says: "The market is dialogue."

Cryptocurrencies as markets

Africa, Asia and South America are the regions with the highest cryptocurrency adoption rates.

On these continents, economically unstable are constantly cultivating more crypto talents.

Why? Because when currency is unstable, resources are scarce, and production opportunities are limited, people's collaboration becomes extremely difficult. And the crypto market provides:

Stablecoins—as a more stable currency option

Global connection—giving people more channels to obtain resources

Emerging markets—providing greater production and creation opportunities

Cryptocurrencies are no longer limited to parents raising you The grassland, the crypto market allows anyone with Wi-Fi and creative people around the world to participate, breaking the limitations of geographical location and creating more and more "market dialogues".

Cryptocurrency is just a mirage

North America, Europe and Australia are the largest market creators in the crypto industry, but their focus is completely different.

This is what the industry calls a "casino."

Immortal articles, reasonable negative reports and billions of dollars of funds have flowed into the casino. Market discussion The focus is mainly on the creation of tokens. Or the creation of token issuers. Or the infrastructure created to issue tokens.

In short :

•Pumpfun —— Create a market for the issuance of new tokens

•Coinbase /Uniswap — Create a market for issued tokens

•SuperRare/FND — Create a market for NFT (non-fungible tokens)

•Opensea —— Create markets for issued NFTs

These are indeed crypto market sales and distribution , part of the production and financing system. All six continents are involved, but market creators who are addicted to the casino mentality are often the representatives of self-destruction.

Memes are not products, markets need vision

As someone who is well versed in the gameplay of "crypto casinos", I can say confidently: we have issued countless tokens. We have written a large number of analytical articles (including myself). We made the most exaggerated predictions about these tokens, while spared no effort to rush to sell them, but rejected any actual entrepreneurial efforts to avoid "influencing the potential success of the token."

Pirate memes means a lot of work

Last year, I accidentally became the manager of a memecoin, which made me think about this The field has a deeper understanding:

1. "If you control memes, you can control the world" This famous saying has been misunderstood by many people, who regard it as a target, Not the direction.

2. Memes are the unit of culture, but spreading culture and building an economy around culture are two different things.

3. Bitcoin (BTC), US dollar (USD) and Ethereum (ETH) are memes, but they have specific market functions.

4. Brand is the packaging for memes to enter the market.

Recently, the crazy scene of memecoin soared, has made many people mistakenly believe that this can succeed by finding the "right meme".

Of course, there are exceptions, such as Dogecoin, which seems to confirm this. But I want to say that the success of Dogecoin is precisely a "special case of economic rules."

•Stablecoins are the "dollar" of the Internet.

•Memecoins represents the "stock" of the Internet.

•NFT (non-fungible token) represents the "collection" of the Internet.

This creates a completely new market around sales, distribution, production and financing.

Decentralized Investment Index

If you consider memecoin as an Internet stock, then a more realistic value proposition is to obtain investment opportunities that are rejected in traditional finance . and to issue public offerings to retail investors rather than corporate parties.

The following is a case study of Nike's IPO to further illustrate its background.

Nike was founded in 1964, before it went public in 1980 , operated as a private company for 16 years, during which all stock appreciation was controlled by qualified investors.

Nike's stock is accessible before the IPO Sexual timeline:

1.Private Financing (1964-1970s)—Nike's early capital comes from founders, early employees and venture capitalists, who are During the development of the company, it has exclusive rights to use the company's equity.

2. Later private equity market (mid-1970s-late 1970s)— With Nike's expansion, private equity firms and qualified investors gained access to Nike through insider financing.

3. Pre-initial Public Offering Institutional Allocation (1979 -1980) - In the final stages before listing, investment banks and institutional investors receive pre-IPO allocations to ensure they acquire stocks at preferential prices.

4. IPO Date (December 1980) – After 16 years of private value accumulation, Nike’s shares began to be open to retail investors – usually sold at a premium after insiders have locked in the upside.

Nike's IPO was successful, but the timing of the public entering the stock market was fundamentally different from the experiences of early investors. When retail investors have the opportunity to buy By the time of entry, most of the explosive growth in the early stages has been mastered by those who entered the stock market before they went public.

Meme Market Fitness

A thought experiment: /p>

If you buy stocks during your initial public offering, would you invest $10,000 in this Nike logo company or a newly formed brand? A brand has no revenue, products or services, but memes look cool?

A reasonable rebuttal to this statement is that we know Nike is in its IPO Shi is a profitable company. We know nothing about this "emerging brand with cool emoticons".

This is our bigger point of view on memecoin.

The benefit of introducing private equity into the open market is that retail investors have the opportunity to obtain multiple returns that are not available for a long time through the qualification system.

The price is that you have to take huge risks with your money. Just like “founders, early employees and venture capitalists,” “private equity firms and qualified investors,” and “investment banks and institutional investors” take over countless non-Nikes.

This is the directionless way of positioning and attention revealing that a "useless" extremist is likely to self-destruct.

Requiring your memecoin community to be unrestricted or lacks any market functionality (except for media virality or undefined potential) is equivalent to requiring market sales and distribution , produce and fund an Internet stock without fundamentals. By definition, this is ridiculous.

It's as ridiculous as sending your stock quote auto-collector to an irrelevant conversation, hoping that a bigger fool would buy this scale, and then You can ride to the sunset.

Imagine:

I walked to the couple who were having dinner in a Turkish restaurant and looked at each The table repeated the words “buy $NIKE”.

Create Nike, come up with the Nike logo and the slogan of "Just Do it", issue $NIKE shares in the first week of the company's establishment, and then stick to it Keep things undefined since then.

Cryptocurrencies are full of inexperience and self-destruction

The crypto industry remains young—whether in terms of work or the age of participants.

So, this article is not a criticism of some people, but rather an attempt to illustrate two obvious economic truths: memes are not products, and markets are not Your back garden.

In other words, Nike's victory, Disney's magic and fantasy, Apple's innovative spirit are all valuable brand narratives and market guidance, which can Attract attention and shape the brandand even promote consumption behavior.

But they are not products themselves.

The infectiousness of brand memes is indeed fascinating. It can combine with products, business strategies and even broader brand movements to form a strong market effect.

But no matter how passionate you are about a certain meme, the world will not change the reality of the market because of your obsession.

As an old proverb says, "You can lead the horse to the edge of the water, but you can't force it to drink water."