Returning to Growth-Driven Value: From the Dilemma of Involution to Real Growth

The Nature of Market Crisis

The current predicament of the cryptocurrency market is not limited to VC coins, but rather the entire industry is trapped in a state of low liquidity. The peak of Bitcoin's market share lags behind the price peak, the halving effect is diminishing marginally, and changes in the global economic cycle are contributing factors to this situation. In past cycles, the peak of Bitcoin's market share often corresponded to the market bottom, but this time, Bitcoin breaking new highs has not led to a surge in other coins, indicating that the entire market is facing challenges.

The Pyramid Structure of the Era of Intense Competition

The market is forming a pyramid-like class structure, where the profits of each level come from the exploitation of the lower levels. In the absence of external cash inflows, the degree of internal competition is rising sharply. Besides VCs, there are multiple higher tiers in the pyramid that have easier access to low-cost, highly liquid tokens. This structure leads to a continuous drain of market liquidity, exacerbating distrust among the lower levels and intensifying internal competition.

Real rise becomes key

In the era of intense competition, the mortality rate of projects and tokens will significantly increase. The previously popular views such as "technological determinism", "background determinism", and "narrativism" will shift from being sufficient conditions to necessary conditions. The only thing the market truly believes in is real growth - real user growth, real revenue growth, and real adoption growth.

The importance of organic rise

Many projects overly rely on data rise while neglecting real growth. An excellent marketing strategy should be highly integrated with the product strategy, maintaining a high retention rate even after eliminating unsustainable factors such as short-term incentives. A qualified CMO should spend most of their time on strategic observation and thinking, rather than just execution.

The correct way of KOL cooperation

High-quality KOLs can provide value not only at the market and brand level but also offer advice on product, strategy, and other aspects. Founders should engage in one-on-one communication with important KOLs directly, rather than relying entirely on intermediaries. This not only helps the project's development but also reflects the founder's understanding of the industry.

The importance of protocol income

The foundation of sustainable rise is a stable source of income. Whether it comes from external sources like stablecoin interest margins or internal sources like Gas fees and transaction fees, protocols need to have the potential to achieve a surplus. In addition, it is necessary to build effective governance mechanisms and economic model designs to address issues such as long-term incentives.

( Improve economic model design

Most projects lack a real economic model. A reasonable economic model should include: sustainable protocol revenue, matching the token cycle with the project growth cycle, treating incentives as investments rather than consumption, addressing the issue of class solidification in the chip structure, etc. Only by establishing a sound economic model can a project achieve long-term sustainable development.

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