GuShiio.com Only after experiencing many painful experiences will investors stay away from the game of taking over.
Written by 1912212.eth, Foresight News
A LIBRA meme coin takeover game caused an uproar in the currency circle. On February 15, the Argentine President announced the launch of the memin LIBRA, which was announced by the Argentine President, announced the contract address, and then soared. Its market value once exceeded more than US$4 billion. Then, within a few hours, its currency price quickly fell sharply. At present, the current price is US$0.36, and the market value is less than US$400 million. Just a few hours after tweeting, the Argentine president deleted previous promotion of memein and said,”I thought it would be the same as before, and I was just casually supporting a private entrepreneurial project that had nothing to do with me.” I am not clear about the details of the project and will never spread it after understanding it (this is also the reason for deleting the tweet).”
Investors who immediately participated in the local dog charge suffered heavy losses. Solayer developers Chaofan Shou and Tonykebot lost more than US$2 million in this practice. They also announced the list of core members of the team behind their LIBRA whose consciousness was the kip protocol, and vowed to hold them accountable to the end. These two are far more than the ones who suffered losses. According to lmk.fun, based on trading records, a total of 24 traders lost more than US$1 million on LIBRA, and 61 traders lost more than US$500,000. The largest loser realized a loss of $5.17 million. He spent a total of $5.6 million on 2.1 million tokens, which ultimately sold for only $430,000. Correspondingly, as of February 15, eight wallets related to the LIBRA team had obtained 57.6 million USDC and 249,671 SOLs (approximately US$49.7 million) by increasing liquidity, removing liquidity and charging fees, totaling approximately US$107 million.
The insider trading of memecoin, the promotion of celebrity influence, and games that take over faster than run have once again become the focus of market attention.
Today, Paridigm researcher Samczsun, Solana co-founder Toly and Crypto KOL Coobie talked about their views in a Twitter interaction.
The Cabal and KOL
The first question was raised by Samczsun: From a social perspective, will this incident hold some people involved responsible?
Tory’s answer to this question was pessimistic because “group trials at the social level are themselves a problem because they are passive responses to results, rather than based on a set of pre-established and recognized rules.” An attacker can generate unlimited failed tokens, become the only bidder, obtain most of the supply, and then transfer the contract address to KOL. In Tory’s view, the only solution is to force users to have social credit scores and reject tokens with lower scores.
Samczsun continued to press, if memecoins controlled by insiders are bad, why not officially start by excluding all participants? As a result, in the short term, the benefits of one-time profits will not be enough to make up for the cost of exclusion, and in the long term, such behavior will not be profitable at all.
Tory’s answer is simple and straightforward. After promoting the contract address, KOL is ostracized by the fan group, and then the cabal will move to the next KOL.
Cobie said that many KOLs don’t even know who they are dealing with or what they are publishing. It’s just that one broker told these KOL that if you tweet it, you will get X coins.
If KOL and their agents are told something obviously bad, will KOL be held accountable for their actions? Perhaps we often see some tokens proven to have multiple insider trading and frauds, but no one has been punished in any form.
The reputation of some KOLs has indeed been affected, and part of this is because: “How to define good and bad in memecoin? Even if it is a completely unintentional free-market token distribution, the top 20% of holders will ultimately own more than 80% of the tokens.” Tory gave his own answer.
At this time, Cobie bluntly explained that there is currently no effective way to humiliate those shameless people. Next, he posted a long tweet to explain his views.
“This situation has existed long before the advent of memein, and has basically been the case since I came into contact with the crypto industry. (These recent operations are just more efficient and obvious.) Every time someone is humiliated, they use it as a populist rhetoric, and some even become more popular because of it. The accused will only accuse others in turn, forming opposition. For example, some YouTubers have been promoting scams for three consecutive cycles, and despite constant disclosures about them, they are still very popular. The cyclical nature of the crypto industry means that there will always be new entrants to fill the loss of old users, so these people can always find new audiences.
Markets lack truth and supervision, and the results often go unsolved
In Cobie’s view, the only people who have ever seen truly humiliated enough to leave the circle completely are either people who have relatively credibility but have made mistakes, or people who don’t need to rely on the industry to make money. And those who really should be expelled already know what they are doing and have made a choice. Exposing them doesn’t make them ashamed, it just threatens their income, so they fight back. In the absence of “truth arbiters”, disputes often have no final conclusion.
In addition, Cobie also said that it may take more than five years for human nature to be truly recognized by the public, and only if they make obvious mistakes in the process.”
“If fraudsters do not receive the threat of losing their freedom, it is almost impossible to prevent them from continuing fraud.”
Taking over the game falls into an unsolved problem
Cobie also made a point-to-point comment on the currently controversial fast-paced issues in high-value VC coins and memecoins. He said that the current market development context is that market participants actively rush into these scams like moths. Most people also know that these scams are scams, but the goal is to sell them to the receiver at three times the price. They just want to get rich in 2 weeks, not 2-4 years. Players hope to win the grand prize in their next action.
If there is no way to stop them. So avoiding participation as much as possible may be one way.
Cobie said that investor/player behavior can easily change. If you lose 10 times, you will stop playing this game. No one buys VC coins anymore, and in fact some (very, very few) of them are mispriced. They no longer buy these coins because they are tired of being sucked.
Cobie had previously written about VC coins with high FDV and low circulation, but he was disappointed that he did not achieve the desired goal and did not prevent the public from buying these coins. The only way to change investor behavior is for participants to lose enough. Only after the pain can this group truly realize that they should avoid participating in it.
“This in turn changes the behavior of token issuers, and the public will no longer buy such products, so you can no longer issue this type of token easily,” Cobie wrote.
last
If you launch a token echo now and have to choose between two paths:
(1) Sell 25% to venture capital firms and insiders, reserve 35% for the team, and launch a token that receives proceeds from Echo’s business and distributes them to holders and is issued with low liquidity;
(2) Sell 0% to anyone and keep 50% for yourself, launch a memecoin called Echo the Racist Dolphin, which has no connection to Echo except for a different name, is deployed by my public wallet, and posts tweets through a CA account;
Which one do you think will have a higher market value? Cobie gave his own answer: memecoin will be worth more (at least for now) than VC coins. But if the same experiment is done five years later, the results will be exactly the opposite.
Interestingly, in the Cobie comment area, there is a nosy comment area who posted a picture asking which token is the token mentioned.
Cobie said he would release the contract address in 25 minutes, while Toly commented: Are you ashamed?
Cobie responded as a joke and joked about Tory with Buterin (the name of God V).
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