Pump.fun is a poisoned drink, but everyone can't help but take a sip

Everyone knows it’s toxic, but still takes a sip: Pump-style MEME issuance method.

Author: Haotian

I don’t know if you have ever wondered what the “original sin” that caused this wave of corpses everywhere in the chain was? The answer is that everyone knows that it is toxic, but they will still take a sip: the pump-type MEME-based asset issuance method.

Initially, the Pump-style internal and external disk start mode can allow many P juniors to win a relatively high probability investment multiplier through dry sitting, trial and error, etc., plus the market sentiment Fomo amplification effect after running out of the external disk, making the Pump issuance asset method once become mainstream.

But, into also Pump, defeat also Pump, Pump issuance asset way essentially:

1. It is the short-term industrialized production line issuance of coins, which is characterized by standardized operation, low threshold for access, and rapid mass production. This has led to the fact that most projects issuing coins do not have a complete project plan, let alone technological innovation and product implementation. They simply focus on mass production, experience a price drop, and then start over.

In this way, the issuer ‘project party’ has become the absolute upstream of the liquidity harvesting assembly line, while investors in the downstream have become ‘chips’, always falling into a vicious circle of losing money no matter what they buy and doing wrong no matter what they do;

2. It is a deconstruction of the past ‘technical narrative’. In the past two cycles, there have also been some MEME tokens without practical significance, but the mainstream market still upholds the technical narrative advocating decentralization. From the high-performance battle of layer1 pursuing TPS to the construction of Rollup public chains for the purpose of extension in layer2, and then to the iteration of technical narratives such as modularization, account abstraction, chain abstraction, Staking, Restaking, etc.

Although the application landing is too weak in the end, these narratives have a fairly long market competition, internal digestion cycle, and the value evaluation indicators such as technological innovation, team strength, and operational accumulation will become in the process, at the same time, airdrops, Grant ecological contributions, project horizontal and vertical cooperation, etc. are sufficient, suitable for the value preference of long-termism Build.

However, after the Pump, the nihilism of MEME-ification completely changed the industry ecosystem, and market participants no longer believe in the power of technological innovation, nor do they pursue the long-term PVE growth concept, but simply fall into the short-term zero-sum game of PVP, destroying the technical innovation value system that the currency circle relies on.

3. Over-reliance on the attention Fomo economy, originally Crypto’s vertically segmented narratives have different communities, each track has a certain layout of funds and users, but when the project grows explosively, users’ attention will be severely torn and dispersed, and almost everyone’s final cognition and decision will be abstracted as: When CA, go all in without thinking.

This will lead to attention speculation becoming the core grasp, and the conspiracy group that is good at creating and manipulating information asymmetry will become the behind-the-scenes manipulator. As a result, most users in the market are forced to lose their holder mindset and have no choice but to become passive players, competing with market makers and living off their youth; while the project party has to withstand huge selling pressure from the TGE, creating a vicious cycle where TGE is the peak, alas.

How to break the game? Put it simply, there is actually only one way: embrace VC institutions to enter the market, support early-stage innovative technologies; attract innovative regular army teams to layout, bring real value creation; linearly release chips, extend the project’s survival cycle; cultivate a community with long-termism, and so on.

It’s easy to say, but it’s not easy to move forward, and the market needs a natural evolution over a long cycle.

As I said at the beginning, Pump is poisonous, but most people don’t want to admit that it is poisonous, and they can’t help but take a sip because it captures human greed, speculation, and profit-seeking.