The Dilemma of Involution and the Rise in the Crypto Market

In the current crypto market environment, it is not only the so-called "VC coins" that are facing difficulties, but the entire market is caught in a kind of involution dilemma. The root of this situation can be traced back to the issues of over-investment and unreasonable valuations in the last bull market.

The market is experiencing a pyramid-like structure, where each level is trying to profit from the layer below while draining liquidity from the market. This cycle further exacerbates the sense of distrust and the level of internal competition within the market. In this era of intense internal competition, the survival pressure faced by projects and tokens has greatly increased.

Factors that were once considered important, such as technology, background, and narrative, while still necessary, are no longer sufficient. What the market truly values are the actual rise data: user rise, revenue rise, and adoption rate increase.

Key Strategies to Break Through Involution

1. Emphasize organic rise

Projects should focus more on real, sustainable growth rather than simply relying on data accumulation. An excellent marketing leader should spend most of their time on strategic thinking and planning, rather than mechanical execution.

2. Re-examine KOL collaboration

The value of high-quality KOLs has been underestimated. Project parties should communicate directly with important KOLs, treating them as key clients and partners, rather than just promotional tools.

3. Emphasize protocol revenue

A sustainable business model and stable sources of income are the foundation for the long-term development of a project. The project should strive to achieve a balance between income and expenditure, or even a surplus, rather than overly relying on token issuance.

4. Improve the economic model

Many projects lack a truly effective economic model. A good economic model should include:

• Sustainable protocol revenue
• The token cycle matches the project development.
• Treat incentives as investments rather than consumption
• Solve the problem of the rigidity of the chip structure

In this challenging market environment, only projects that truly focus on substantial rise and establish sustainable business models can stand out in fierce competition and achieve long-term development.