The Era of Intense Competition in the Crypto Market: Returning to Real Growth

The current crypto market is undergoing a severe period of internal competition. This is not just the so-called "VC coin" issue, but a challenge faced by the entire industry. Over-investment and unreasonable valuations in the past few years have allowed many projects and funds that should have been eliminated to survive and enter the secondary market with inflated valuations.

In the absence of external capital inflows, the crypto market has formed a pyramid structure. Each level attempts to profit from the lower level while siphoning off market liquidity. This cycle exacerbates the distrust in the market, making the internal competition increasingly severe. It is worth noting that within this pyramid, there are not only VCs but also other higher-level participants.

In this era of intense competition, the elimination rate of projects and tokens will rise significantly. Factors that were previously considered important, such as technical strength, team background, and market narrative, while still important, are no longer the only determinants of success or failure. What the market truly values is tangible rise - user growth, revenue growth, and increased adoption.

To survive and grow in such an environment, the project needs to reassess its rise strategy:

1. Emphasize organic growth: One should not overly rely on data growth tools and short-term incentives. True growth should be closely tied to product strategy and should maintain a high retention rate even after removing unsustainable factors.

2. Reassess KOL collaboration: High-quality KOLs can not only bring market influence but also provide strategic advice and resource networks. Project parties should communicate one-on-one directly with important KOLs rather than completely relying on intermediaries.

3. Core indicator based on protocol revenue: A sustainable business model and revenue sources are the foundation for long-term development. Projects need to focus on how to obtain stable income from external or internal sources, and ensure the possibility of achieving surplus.

4. Build a real economic model: This includes balancing token circulation with business development, designing reasonable token unlocking periods, viewing incentives as investments rather than consumption, and addressing the class solidification issues of the chip structure.

In this challenging time, only projects that can demonstrate real rise and establish sustainable business models will stand out in the intense competition. The market is undergoing a purification process, which will benefit the long-term healthy development of the entire industry.