You may not realize how rapidly narratives change in this business, especially if you are playing catch-up. Fads fade, memes lose their appeal. Bitcoin’s declining momentum is certainly weighing on the seasonal craze of this year.
Although it may be tempting to chalk it up as just another bull market correction or temporary setback, the underlying forces are strong and working against most popular scale narratives. It’s hard to ignore the naked swimmers as this current is ebbing.
The airdrop meta is over.
Recent projects that have been proposed to the public are a good example of this. “build on Bitcoin” So far, the focus has been on opportunism rather than innovation. BitVM, ordinals and other innovations have sparked a genuine and innovative interest. However, the implementation has been lacking. The main cause of this is lazy operators. Instead of actually doing engineering workEach third-rate businessman in the field simply copied the Ethereum strategy and applied it to Bitcoin.
You can also find out more about the following: made a case In my previous article This modular cottage industry is putting Ethereum at a disadvantage from the standpoint of scaling, but recent events have shown just how misaligned economic incentives are.
It’s no secret that the promoters of this race to build infrastructure are printing tokens as if they were going out of fashion. It looks like those schemes are losing popularity. You may remember that everyone eventually shifted away from ICOs when Dentacoin made billions. As we speak, something similar is happening.
Only a few months ago I explained How the concept of points has dominated the token airdrop meta. There were many different execution layers that advertised the possibility to receive rewards for creating liquidity in their network. Simple enough, users were incentivized for contributing to a trading pool or using an application on a specific rollup. After the launch of the blockchain, tokens will be distributed to semi-random participants. It was hoped that by doing so, they would be more aligned with the protocol.
In fact, the opposite has happened. The absurdity of token airdrops was brought to light by a few highly anticipated events in the last week.
What is the best way to verify a user’s identity in a pseudonymous network? You can’t. It is impossible to impersonate multiple users. It is not surprising that well-capitalized agents are more successful. quickly caught on to the trick They have been busy exploiting the technology to their advantage. In place of users, the airdrops attracted mercenaries that are plundering every new layer.
Some people might wonder why I write about tokens when talking about Bitcoin article. It is a good reminder to avoid any Bitcoin scaling proposals or layers that involve a token. This playbook, despite the fraudulence of these assets, is an indication that projects are behind even Ethereum standards. It doesn’t matter what they say about their technology. work You should not be concerned about the execution environment of their software or lack thereof. proof. We can anticipate that the window of opportunity is rapidly closing on them. “users” At every opportunity, profiteer from any remaining liquidity. Keep away.
Ethereum’s identity crisis
You can also find out more about the following: Bitcoinlayers Platform reported yesterday, that over half of the current scaling proposals were using Ethereum EVM’s technology platform. This number is confusing. Although it’s probably a bit generous to link any of these with Bitcoin, the market has clearly shown interest in this concept.
It is particularly telling, given the volatility of Ethereum right now. It’s not a civil conflict yet, but there are some lines being drawn. The outcome of this battle will tell if the rollup-centric strategy is successful. I have previously outlined the case for Ethereum’s network fragmentation. It is enough to say things are moving quickly, and that the project faces serious discussions and reflections.
A group of developers advocates for the enshrinement of rollup operations The protocol consolidates economic activity improve user experience. The other group is raising questions You can read about this initiative and how it claims to be a success. further centralize MEV extraction And affect resistance to censorship. Vitalik may need to find another rabbit in his hat.
The once celebrated modular thesis has been weakened by the commoditization in EVM environments. starting to look rather tenuous. The original playbook doesn’t seem to work anymore, and narratives have changed again.
The timing of this could be better for emerging Bitcoin layers who are starting to look pretty outdated by industry standards — and they haven’t launched yet!
Memetic exhaustion
It’s rare that I am a meme bear but it is true they move in cycles. The latest version of the meme has lost its appeal. Although I am not yet ready to declare the end of the new meme paradigm it is another example of Bitcoin’s new layers arriving late. What market is there for the new infrastructure if not dog and cat tokens?
New Bitcoin developers are finding the ground shifting under their feet. I believe those who took the more difficult road and invested in Bitcoins are likely to have been those. work You will be better positioned to make it through this bull market. To do so, we will need to learn valuable lessons from experiments being played out across the Atlantic. The rapid evolution of the situation would seem to warrant patience.
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Source: bitcoinmagazine.com