Recently, many influencers have been discussing DWF, and when combined with the narrative of this current market cycle and the shift in market sentiment, some interesting points have emerged. It seems that the entire Crypto market is undergoing a process of meme-ification and simplification from top to bottom. Is it in desperate need of a stimulant?
1. Simplification and Emotional Release
Looking at the characteristics of this current bull market cycle, aside from the institutional bull brought about by ETFs, all other areas are moving towards “simplification” and “unmasking”. In simple terms, this market is pursuing an emotion of “simple and high volatility” to the extreme. Specifically, DeFi has been labeled as too complex, with more complexity leading to easier losses. NFTs, once the highest target for storytelling and hype, show no signs of a second wave in this cycle.
The previous champions of these two sectors are performing poorly in this cycle for various reasons – innovation stagnation, loss of user confidence due to incidents like FTX LUNA, frequent security issues in DeFi, and a market full of lonely monkeys singing songs. Rebuilding market confidence will require fresh blood, time, and a stimulant to inject excitement into the market.
This is the background of this unique bull market cycle, extremely special and very polarized. Hence, the dominance of meme coins in this cycle by the community, which are simple, emotionally releasing, and highly volatile, has taken full advantage of the favorable conditions.
2. Market Makers and Polarization
On the other hand, speaking of market makers, after the various “elite” market makers experienced events like FTX and LUNA in the previous cycle, the results were also very tragic. The era where everyone blindly followed Three Arrows and Alameda has passed. The market suddenly realized that the altar of Crypto might actually be more unstable than a grassroots organization. In such an environment, the controversial DWF emerged in this cycle, playing the role of a stimulant in this special era.
From the perspective of market makers, there are differences between Crypto and traditional fields:
– Scale: Market makers in the crypto space operate on a smaller scale compared to traditional financial markets.
– Liquidity and volatility: Crypto markets have lower liquidity and higher volatility.
– Regulation: Regulation in the crypto market is not perfect, and the relationships between exchanges, project teams, and market makers are complex.
– Technology: Some market makers may involve blockchain 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 are:
(1) Providing liquidity: Ensuring there is always liquidity in the market by continuously providing depth for buying and selling.
(2) Price fluctuation and discovery: Market makers adjust bids and quotes to smooth market price fluctuations and guide price discovery.
(3) Improving market efficiency: By quickly matching trades, market makers can reduce trade delays and improve market efficiency.
Therefore, a good market maker is usually one with strong capital strength, able to provide sufficient liquidity while smoothing price fluctuations. However, DWF’s style has always been characterized by high volatility, focusing on market making while also investing in many projects, leading to controversy due to its aggressive trading strategies and subsequent accusations of market manipulation.
4. Giving You What You Want
In fact, DWF has emerged in a highly controversial manner – “giving you what you want” – with tokens like $NOT, $FLOKI, $LADYS, etc., capturing the main emotions and power of users in this cycle. In the current market environment, it seems to have taken full advantage of the favorable conditions, even though I myself adhere to long-termism and value investing. Doing the right thing does not mean dismissing everything like memes, ponzi schemes, or anything speculative. Value investing is not an obsession, and long-termism is not aloofness. I often see many people analyzing market trends and issues very insightfully, but being able to adapt to each era is what makes a true hero.
Looking at this unique bull market, DWF has emerged in a highly controversial manner, and its future path remains uncertain. But for now, it has made an impression on all market participants.
