The Failure of the Primary Market and the Dilemmas of the Secondary Market: The Transformation and Challenges of the Crypto Assets Landscape

Recently, the Crypto Assets market has shown some thought-provoking trends. Several emerging token projects have experienced significant price declines after their issuance, reflecting the challenges faced by the current market structure.

Token Distribution Model and Market Performance

Analysis shows that in the token allocation of most new projects, the proportion of venture capital generally ranges between 10% and 30%, which is not much different from previous periods. Most projects choose to distribute tokens to the community through airdrops, but the effectiveness of this method is questionable. Users often tend to sell tokens immediately after receiving airdrops, resulting in significant selling pressure on the market.

By observing the market capitalization data and price trends of multiple new tokens, it can be found that tokens dominated by venture capital generally perform poorly, often showing a one-sided downward trend after issuance. This phenomenon raises questions about the effectiveness of traditional token issuance models.

The Ebbing of the Memecoin Bubble

The Memecoin market has undergone a transition from being developer-led to purely speculative, ultimately falling into the predicament of a zero-sum game. This transition has exacerbated the collapse of the Primary and Secondary Market structure, and rebuilding may take a longer time.

As users realize that there are still manipulative forces behind Memecoins, the issuance of these tokens has lost its fairness. The severe losses in the short term have quickly affected users' psychological expectations, bringing this token issuance strategy close to an end.

The Dilemma of Venture Capital-Led Projects

The traditional venture capital dominant model faces multiple challenges:

1. Users' expectations for early advantages during TGE have decreased.
2. The return on venture capital has decreased, and the scale of investment has shrunk.
3. The willingness of secondary market users to take over is low.
4. Shorting new coins has become a market consensus.

These factors lead to projects dominated by venture capital often falling into a one-sided decline after issuance, creating a vicious cycle.

New Token Issuance Paradigm

In the face of the current predicament, some projects are exploring new token issuance models:

1. Unite top opinion leaders and a small amount of venture capital.
2. Adopt a strategy of large-scale community launch and low market capitalization cold start.
3. Build consensus through the influence of opinion leaders to secure profits in advance.
4. Exchange high liquidity for market depth.

This model is essentially a paradigm shift in power structure, transitioning from venture capital dominance to a transparent game of community consensus pricing.

On-chain Transparency and New Opportunities

Some projects have started to try to improve transparency through on-chain IDOs and other methods to resolve conflicts between project parties and venture capital. This mechanism not only brings new users to wallets but also provides participants with a fairer opportunity.

Through the transparency of on-chain data, exchanges and market participants can more accurately assess the true situation of projects, which helps to address the challenges faced by traditional centralized exchanges.

Conclusion

The Crypto Assets market is currently undergoing a crucial transformation. Only by fairly distributing tokens to the community and continuously advancing the construction of the technology roadmap can the long-term value growth of the project be achieved. Market participants need to adapt to this new landscape and rethink investment strategies and project development directions.