It’s difficult to understand how fast narratives in the industry can change, particularly when you’re playing catch up. Memes and fads get old. Bitcoin is waning momentum has put pressure on this season’s seasonal trend.
It’s easy to dismiss it as the normal bull market correction. However, there are strong currents at work that go against common scaling narratives. It’s hard to ignore the naked swimmers as this current is ebbing.
Has the Airdrop Meta ended?
The recent spate of projects that propose to “build on Bitcoin” It has been more about opportunism and less innovation. BitVM, ordinals and other innovations have sparked a genuine and innovative interest. However, the implementation has been lacking. It is largely due to lazy operators. Instead of actually doing engineering work, all the other third-rate entrepreneurs in the cryptocurrency industry just took Ethereum’s playbook and applied it to Bitcoin.
You can also find out more about the following: made a case In my previous article, I explained why the modular cottage industry left Ethereum less able to scale. Recent developments have shown how misaligned economic incentives really are.
The ability to produce tokens at a rapid pace has slowed down the race to build infrastructure. It looks like those schemes are losing popularity. Remember how Dentacoin’s billion-dollar raise prompted everyone to abandon ICOs? Currently, we are witnessing a similar situation.
A few months back, 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 joining their network in exchange of liquidity. Simple enough, users were incentivised to contribute to a trading pool or use the applications that are part of a rollup. Tokens were allocated semi-randomly to qualified participants once the chain launched. It was hoped that by doing so, they would be more aligned with the protocol.
The exact opposite happens. Two highly anticipated tokens airdropped in the last few days have revealed the absurdity behind the system.
What is the best way to verify a user’s identity in a pseudonymous network? You can’t. It is impossible to do this, which allows any actor with the right skills to impersonate a number of people. 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. Airdrops are attracting mercenaries instead of end users who want to pilfer every layer.
It’s possible that you are wondering why I am writing an article about Bitcoin and tokens. This is merely a warning to stay away from any Bitcoin layer or scaling proposal that includes a crypto token. This playbook, despite the fact that the assets are fraudulent, is an indication of projects who have fallen behind, even in terms of Ethereum. It doesn’t matter what they say about technology, or whether their proof of zero-knowledge is valid. They are in a hurry and will likely shortchange us. “users” At every opportunity, profiteer from any remaining liquidity. Avoid them.
Ethereum’s identity crisis
It is important to note that the word “you” means “you”. Bitcoinlayers Platform reported yesterday, that over half of the current scaling proposals were using Ethereum EVM’s technology platform. What am I to make of that number? You’re probably being generous when you say that any of them are Bitcoins, but it is clear that the market wants to explore this idea.
It is particularly telling, given the volatility of Ethereum right now. You can’t yet call this a war, but the battle lines have been drawn. This will determine how Ethereum rolls up. I have previously laid out the case for Ethereum’s network fragmentation. Let’s just say the situation is escalating rapidly and this project will again be subject to serious self-reflection and debate.
One group of developers is advocating the adoption enshrinement of rollup operations Incorporated into the Protocol to Consolidate Economic Activity improve user experience. A group of people is raising questions These claims are a part of the campaign claiming that further centralize MEV extraction And affect resistance to censorship. Vitalik may need to find another rabbit in his hat.
Once celebrated, the modular thesis has lost its luster due to a combination of fatigue and 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!
The memetic exhaustion
It’s rare that I am a meme bear but it is true they move in cycles. The latest one has lost a bit of its shine. 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. Without them, where is the market for all this infrastructure?
New Bitcoin builders are finding the ground shifting under their feet. I think those who chose to put in the work to get to the end of the bull market will be better off. To do so, you will need to learn valuable lessons from experiments being played out across the Atlantic. In light of how quickly things are changing, it would seem that patience is required.
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Source: bitcoinmagazine.com
