Is the crypto market in dire straits? From liquidity depletion to the exodus of builders, the industry's dilemma.

These days I've been thinking about the x402 track constantly. This morning I woke up and saw the market—goodness, it just crashed. I have a lot to say that's built up inside me, and I can't hold it back:

The liquidity has long been exhausted.

What is the market still pretending to be bullish about? After that wave from TRUMP, liquidity has basically hit the bottom. Those small rebounds afterwards? They are all supported by emotions, not a real bull market at all.

When a Shanzhai coin is launched, it comes with a debt burden

Now the altcoin TGE is burdened with debt on the same day. The die-hard holders of the past are gone, and the serious contributors have dispersed. What remains? Airdrop hunters are cashing out madly, VCs are eager to exit and recover losses, exchanges are raking in profits at an astonishing rate, and project teams that have persevered for years just want to make a quick buck—everyone is looking for an exit, but who will take the bait?

The Redemption Myth of MEME Coin is Shattered

MEME was once regarded as a hope to counter high FDV VC coins, and it indeed fulfilled its historical mission. But where is the problem? Zero technical barriers + assembly line replication + so-called “fair launch” cannot support long-term value.

What's worse is that when VC coins stop pursuing technological innovation from 0 to 1, MEME is left with only PVP internal strife. This kind of stock game will ultimately hollow out the entire industry.

The exchange begins to mine gold itself

What was the original role of exchanges? To take on the spillover effects of on-chain innovation and amplify liquidity. As a result, when platforms like Pumpfun, GMGN, and Hyperliquid emerged to create wealth myths, exchanges panicked and began to engage in “internalization” for self-rescue.

The one selling shovels has started making gold themselves, what significance is there in the gold mining business anymore?

The Darkest Hour for Builders

The project teams are really having a hard time now. Why are so many projects rushing for TGE? Why is no one willing to spend time refining their products? Why is the blame for the market imbalance placed entirely on the project teams and VCs?

This problem is too complex for anyone to provide a standard answer. However, the reality is that Builders and VCs in the crypto space have gone bankrupt and fled. Even more terrifying than liquidation to zero is the entire industry being drained, leaving nothing but empty buildings.

Writing this feels a bit like complaining. But this is exactly why I have been emphasizing on-chain innovation.

Our Crypto industry is no longer the vibrant one it used to be. It is sick, old, and may even be beyond cure.

Only a truly innovative on-chain narrative that starts from scratch and is driven by technological innovation can revitalize everything.