Encryption investment new logic: market transition from Meme coin to income capture

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From the Decline of Meme Coins to Income Capture: Analyzing New Logic and Hot Projects in Encryption Investment

Recently, the encryption market has undergone a transition from a pure Meme coin frenzy to genuine revenue models. Industry insiders believe that the era of worthless tokens is coming to an end, and true revenue models are the future. Below is an in-depth analysis of current market hotspots and investment logic:

From Pure Meme Coin Decline to Income Capture: Review of the Pump.Fun Craze, Hyperliquid Buyback Model and New Logic in Encryption Investment

The Logic Behind the Pump.Fun Craze

The success of Pump.Fun indicates that there is an extremely strong demand for tokenized assets in the market. It has become one of the most explosive income events on-chain, regarded as the "0 to 1" innovation of this cycle. This mechanism has led to the birth of many brand new assets on Solana, creating a completely new structure of original assets.

However, some imitators have introduced new models, such as allowing token holders to capture platform value. The token economic designs of these projects are more complex. However, many challengers face issues of poor design or raise concerns, especially those platforms that claim to have a "relationship" with a certain business or enterprise.

In contrast, Pump.Fun clearly emphasizes that these tokens are "worthless Meme coins," avoiding the risk of misleading users. The market has gradually become optimistic about the immediate use token issuance model, establishing a clear Token issuance and price growth mechanism through the "joint curve."

The Decline of Pure Meme Coins

The market is moving away from newly launched pure Meme coins. To stand out in the current market, a mechanism for income capture must be provided. As regulatory and legal frameworks gradually become clear, teams that cannot foresee future market changes will no longer be favored.

The two most common models in the current encryption market are buyback and fee distribution. The buyback model is popular because it directly returns the project value to the token holders. From the perspective of market expectations, users have accepted that for a token to have value, it must capture protocol revenue.

Hyperliquid Case Study

The buyback mechanism of Hyperliquid demonstrates how to directly return profits to token holders. This model has a strong supportive effect on the price of the token itself and will create a positive cycle. Although not recommended in traditional finance, in the encryption market, buybacks are no longer just "rational dividends," but also carry the signal effect of token economics.

Encryption Investment New Logic

The current market has entered "Hard Mode": projects need real products, revenue, and users to build token value. Investment focus has shifted to the mid-to-late stage, with risk appetite declining. However, with the market warming up, a capital influx is expected in 2025.

Investors are more focused on projects that "actually do something," including stablecoins, DeFi, and consumer wallets. The on-chain economy is gradually taking shape, improving upon traditional financial technology. Consumer-level encryption applications are gaining renewed attention, as investors look for projects that enable users to participate long-term on-chain.

Criticism of the "Invest Only in Infrastructure" Strategy

Some funds use infrastructure investments as arbitrage tools, seeking exit routes before the Token goes live. This behavior is seen as a long-term detriment to the industry, placing all the risks on retail investors. There are calls within the industry to avoid repeating the mistakes of the last bull market and to prevent misallocation of capital.

Lessons Learned from Venture Capital

In the encryption field, the capabilities of individuals and teams are more important than in any other field. Projects may change direction over time, but strong execution is the key to success. However, the level of respect that encryption founders have for the spirit of contracts is generally low, and investors need to cope with unpredictable behaviors and the limitations of legal structures.

The high volatility and unpredictability of the encryption market can bring extreme profits, but also comes with high risks. Investors need to learn "emotional regulation" and "time extension" to cope with the chaos of the market.

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SigmaBrainvip
· 19h ago
Play is play, but money still needs to be earned.
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Rugpull幸存者vip
· 07-15 06:16
Good work depends on execution.
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AirdropHunter420vip
· 07-15 06:15
The new era of collecting money has begun.
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MondayYoloFridayCryvip
· 07-15 05:56
All in once is fun, all in all the time is fun.
View OriginalReply0
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