Author: Chen Mo, Founder of BV DAO Source: X, @cmdefi
Recently, I have noticed many prominent figures discussing DWF, along with the shifts in the current market narrative and sentiment. I have come across some intriguing viewpoints that suggest the entire Crypto space is undergoing a process of memeification and simplification from top to bottom. Is there a need for a stimulant to inject some excitement into the scene?
1. Simplification and Emotional Release
Looking at the characteristics of the current bull market cycle, apart from the institutional frenzy brought about by ETFs, other areas are moving towards “simplification” and “unmasking.” In simple terms, this market is now seeking “simplicity and high volatility” emotions to the extreme. Specifically, DeFi has been labeled as overly complex, with the notion that the more complex it is, the easier it is to lose money. NFTs, once the pinnacle of storytelling and hype, show no signs of a significant resurgence in this cycle. The performance of these two previous champions in this round has been lackluster for various reasons, including innovation stagnation and a loss of user confidence due to incidents like the FTX LUNA debacle and frequent security issues in DeFi. To rebuild market confidence, fresh blood is needed, along with time and, of course, a stimulant.
This sets the stage for the current bull market – exceptionally unique yet highly polarized. Hence, the dominance of meme coins in this cycle, driven by communities, is characterized by simplicity, emotional release, and high volatility, seizing the opportune moment.
2. Market Makers and Polarization
On another note, let’s talk about market makers. After the elites of the previous cycle faced tragic outcomes following events like FTX and LUNA, the era where everyone blindly followed Three Arrows and Alameda is long gone. The market suddenly realized that the altar of Crypto might be even more precarious than a makeshift stage. In this environment, the controversial DWF emerged in this cycle, known for its aggressive approach, seemingly playing the role of a stimulant in this unique era. From the perspective of market makers, Crypto differs from traditional fields in terms of:
– Scale: Market makers in the cryptocurrency space operate on a smaller scale compared to traditional financial markets.
– Liquidity and volatility: Cryptocurrency markets have lower liquidity and higher volatility.
– Regulation: The regulatory landscape in the cryptocurrency market is not well-established, resulting in complex relationships between exchanges, project teams, and market makers.
– Technology: Some market makers may engage in on-chain or DeFi financial strategies, requiring sufficient technical support to ensure the security of their trading execution.
3. Where Is the Controversy?
Traditionally, the main functions of market makers include providing liquidity, stabilizing price fluctuations, and improving market efficiency. A good market maker is typically characterized by strong capital backing, sufficient liquidity provision, and smoothing price volatility. However, DWF’s aggressive and high-volatility trading style has sparked controversy because it focuses on market making while also investing in numerous projects, leading to accusations of market manipulation.
4. Giving You What You Want
In a controversial manner, DWF has emerged by giving users what they desire, such as $NOT$FlOKI and LADYS, capturing the prevailing emotions and forces in this cycle. While I personally advocate for long-termism and value investing, it is important to acknowledge that doing the right thing does not mean dismissing meme coins, Ponzi schemes, or speculative assets entirely. Value investing is not about stubbornness, and long-termism is not about aloofness. Many individuals possess incredible insights into market trends and issues, but true heroism lies in adapting to each era.
In the current unique bull market scenario, DWF has made a controversial entrance, leaving uncertainty about its future path. However, for now, it has left its mark on the market for everyone to remember.