GuShiio.com Compared with recreating narratives,”issuing coins” may become a magic weapon for the survival of old projects.
Author: flowie, ChainCatcher
While the encryption community was wailing everywhere, many “Qing Dynasty survivors” born in the last two cycles successively announced the issuance of coins.
Last night, OpenSea first announced that it would launch the $SEA token, and then Doodles also officially announced that it would launch the $DOOD token on Solana. This is another two major NFT leaders after Fat Penguin and Azuki who have been involved in the coin issuance boom.
Not only the NFT track, but also the privacy project that was popular in the last cycle but almost disappeared in 2024 seems to have begun to seek to survive through coin issuance. Last night, Aztec Network, the privacy layer of Ethereum, which was collectively bet on by investment groups such as a16z and Paradigm, also established a foundation to prepare for the upcoming TGE.
Will the community pay for those who are “late”?
Fat Penguin, which issued coins when no one was interested, once rose from 11ETF to 35ETH due to extremely high earnings expectations provided by community players. The FDV of its token PENGU opened at a maximum of more than US$6 billion.
Under the demonstration effect of fat penguin issuing coins, it also attracted many blue-chip NFT collective officials to announce issuing coins. However, compared with Fat Penguin, other NFTs that follow suit do not seem to have received so much attention, and their NFTs and tokens are much less popular than Fat Penguin.
In mid-January, after another blue-chip NFTAzuki announced the launch of ANIME tokens, although the NFTs in the Azuki ecosystem rebounded, the increase was generally not large, far less than that of fat penguins. The NFTs of the Azuki series increased by 17.42% within the day, and other surrounding series NFTs also did not show significant increases.
In December last year, after Doodles NFT founder Burnt Toast posted a tweet implying a coin issue, the Doodles floor price rose in a short period of time, exceeding 8 ETH at the highest, and then fell back to 6.7 ETH, an increase of nearly 60% in 24 hours. After the official announcement of the coin issue this morning, as of press time, the Doodles NFT floor price is still 4.449 ETH.
After OpenSea, the former Dragon One NFT platform, disclosed the news of the coin issuance, the community also received mixed praise and criticism.
When NFT exploded in 2021, OpenSea raised funds crazily and its valuation reached US$13 billion. While the community was actively trading and expected to drop expectations, OpenSea insisted on following the IPO route and was criticized by the community. Now that the NFT market has cooled down, OpenSea has followed the example of Fat Penguin in issuing coins without achieving an IPO.
In response, crypto KOL @BroLenoAus criticized,”This is the last harvest before OpenSea completely becomes a zombie, which is basically equivalent to a death struggle.” After getting the OpenSea airdrop, it will firmly choose to short.
OpenSea 2.0 (OS2), a new platform launched by OpenSea in preparation for TGE, was also limited to Gemesis NFT holders for free access during the private beta phase. Other users had to join the waiting list, which aroused dissatisfaction among community members. They believed that it favored early users and ignored existing user groups.
But @ElvisPoldark believes that there is also a bright side. The new features of OpenSea 2.0, which are promoted by issuing coins, may provide a new experience and compete with competitors such as Blur. For example, OpenSea2.0 provides a one-stop service for NFTs and tokens, allowing users to purchase NFTs and tokens from multiple blockchains across chains without manual bridging.
At present, more airdrop details and TGE for Doodles and OpenSea have not yet been implemented, and we still need to say hello to whether we can get the user’s bill.
From NFT to privacy tracks,”issuing coins” has become a magic weapon for the survival of old projects
Based on the lessons learned from Fat Penguin issuing coins, Trump issuing coins, etc., compared with recreating narratives,”issuing coins” may become a magic weapon for the survival of old projects.
However, these former leaders betting on VC Tiantuan have faced huge bottlenecks and trust crises in their own businesses.
As once the largest NFT trading platform, OpenSea reached a peak monthly trading volume of US$5 billion in early 2021. But according to data from Dune Analytics, its NFT trading volume last month was about $190 million, less than 4% of its peak.
Faced with challenges from competitors such as Blur and magic eden, OpenSea’s 90% market share has dropped to around 30% from 90% in 2022. OpenSea also faces regulatory compliance challenges.
The price of Doodles flooring fell from a high of 25 ETH to 4.449 ETH. During the previous deep bear period, Doodles also saved themselves by selling IP and its surroundings, but the effect is minimal at present.
As a star project of Ethereum Privacy, Aztec Network has received more than US$100 million in four rounds of financing. Top investment teams such as a16z, Paradigm, Coinbase Vuntures, and HashKey Capital have all participated in the bets.
However, after raising US$100 million, Aztec Network suddenly announced a business transformation in March 2023, shutting down its DeFi privacy bridge project Aztec Connect, and focusing on two new major products, namely, the universal development language that supports zero-knowledge proof, Noir and the new privacy blockchain.
In the face of transformation and delayed airdrops, community users were once disappointed with Aztec, and the project has not made much progress or success since then.
At present, while the overall market lacks liquidity and model innovation, and market attention is no longer easily captured by old narratives and VC coins, old narratives and old projects that have lost some foundation of trust want to use the help of issuing coins to turn things around. The challenge is huge.
