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One Million New Tokens Since April: How Crypto Project Founders Rise Above the Noise
Since April 1, the cryptocurrency market has been hit by a tsunami of new tokens. We’re talking about more than a million in less than sixty days. Over 370,000 new tokens have appeared on Ethereum. But Solana stole the show. Over 640,000 new tokens were launched on the platform, most of them meme-tastic creations. What does this wave of new coins mean for developers, project founders and industry CEOs?
What you should know
This is not your grandmother’s cryptocurrency market. This landscape is a meme-fueled roller coaster. Of the 643,000 new tokens launched on Solana, 466,914 were memecoins. Pump.fun, Solana’s memecoin factory, is churning them out faster than a Shiba Inu chasing its own tail. Some of these newly minted tokens are straight pulls.
They just want to survive long enough to cash out and ghost investors who were too lazy to do their research. Don’t let bad actors run away taking your hopes, dreams and hard-earned money with you.
A Dune Analytics dashboard tracks the number of new tokens launched on the Solana-based pump.fun memecoin platform. But
Ethereum does not remain on the sidelines. Its layer 2 blockchain, Base, has become a playground for degenerates creating memecoins at great speed.
With numbers doubling since April, the sheer volume of new tokens means developers, founders and CEOs must prioritize transparency, security and building trust with their communities.
We have been here before. In 2017, when the ICO craze was really breaking out, I reviewed hundreds of projects for one of the top review sites. Most were rubbish. From January to December 2017, the value of BTC increased by 1500%, the largest one-year increase in history.
As bitcoin gained value and legitimacy, trading volumes increased and hundreds of new crypto coins were issued.
The following year 751 crypto coins have become defunct – the highest number of victims of any year. Of these, 390 failed due to lack of trading volume and 237 due to fraud issues. Don’t be the next victim.
I have become stealthy in identifying cryptocurrency winners and losers based on their publicly available information. You don’t have to be Nostradamus to know that most meme projects will crash and burn. A handful will emerge stronger than ever.
These will have a vibrant and engaged community. The token will effectively tap into humor or pop culture and spark virality. Those with long-term sustainability will move beyond hype, trends and shilling. They will boast active development, innovative features, or clear utility within a decentralized application (dApp) or ecosystem. These are the projects that hover above the sea, mostly shit, that ride FOMO and FUD.
Read on for some more information on winning strategies in the Wild West of cryptocurrencies.
Standing out is harder than ever
Project founders and CEOs need to be aware of increasing saturation. With a million new tokens flooding the market, it’s safe to say that competition has never been more intense. Each project requires more attention and investors. Standing out in this crowded market will require exceptional innovation, marketing and community-building strategies.
Now, take this.
The influx of tokens, especially meme coins, suggests a shift in user expectations. Many users now seek entertainment, community, and quick profits alongside traditional investment opportunities. Projects that meet these different needs may be more successful.
Strategies for success
If you’re the founder, developer, or CEO of a project, you need to be prepared to handle intense competition for attention, funding, and user adoption. For me, this requires exceptional innovation, marketing and community building strategies.
Remember that high levels of competition in the space also signal a thriving, dynamic market full of opportunities. To be successful in this crowded field you need to identify niche markets, meet specific user needs, and offer unique value propositions that can lead to success even in a crowded field.
The Gold Rush was a time of intense competition, in which thousands of people flocked to California in hopes of striking it rich. Like the crypto space, it was a crowded field, where everyone was looking for the same valuable asset. But not everyone found gold by digging in the same spot. Some prospectors have found success by venturing into less explored areas, using different techniques, or focusing on providing services to other miners (such as selling tools or supplies).
A professional tip is to focus on differentiation. Whether it’s unique features, innovative technology, or a compelling value proposition, finding ways to stand out is critical in a crowded marketplace.
An effective strategy for project founders to differentiate themselves and achieve long-term success is to build a strong community. This includes tactics to engage with investors, foster trust, and build a loyal following. This community-driven approach not only strengthens a project’s position, but also fosters a sense of shared ownership and purpose among its members.
I have seen the spillovers from retail investors make a project more attractive to institutional investors. It’s a powerful force that can push any project to new heights.
The Bored Ape Yacht Club (BAYC), a collection of 10,000 unique Bored Ape NFTs, is an example of how to successfully build a strong community. This project has implemented several strategies including exclusive benefits, celebrity sponsorship and active social media presence. They continue to share updates and create a sense of togetherness among members.
Creative and effective marketing strategies
Promoting community-driven initiatives aligns with another essential tool in the arsenal of project founders. Creative and effective marketing strategies are essential for projects to stand out from the crowd. Harnessing the power of social media trends, forming strategic partnerships with influencers, and advertising campaigns on cryptocurrency news sites helps founders stay afloat and emerge stronger than ever.
By leveraging these tactics, projects can gain much-needed visibility and traction in an increasingly saturated market.
Shiba Inu (SHIB) is a project that started as a meme coin and has managed to build a huge following and achieve significant market success. I have followed some of their effective marketing approaches. Since its inception, SHIB has leveraged Reddit, Twitter, and Telegram to engage directly with its audience. They focused on community engagement, viral marketing, strategic partnerships and transparency.
Address regulatory challenges
Project founders and CEOs need to stay informed about the latest regulations and compliance measures to ensure their token offerings are fair and legally valid. Regulatory challenges are becoming increasingly complex and can land you in prison. Get expert legal advice and implement rigorous compliance protocols.
These moves are essential steps for projects to thrive in an ever-changing regulatory environment. A proactive approach reduces legal risks and increases trust and credibility with investors and users.
Ripple (XRP) is a great example of a crypto project effectively addressing regulatory challenges. While they face significant obstacles, their overall approach to regulation is a model of resilience and adaptability. They continue to apply a combination of proactive legal advocacy, strategic partnerships and industry advocacy. This is why they are positioned as leaders in the blockchain and crypto space.
Collaborate and network
Strategic partnerships and collaborations can be a game changer for project founders and CEOs. Collaborating with other operators in the sector, networking with investors and connecting with experts are necessary tools to strengthen your position in the market.
This interconnected approach stimulates innovation. It also creates a support ecosystem. Founders are able to build authority and generate organic traffic to their projects. This is a great way to overcome challenges and discover new opportunities in the face of a million new tokens flooding the market.
A great example of a successful crypto project collaborating and networking in the current environment is Polygon (MATIC). This layer 2 (L2) scaling solution focuses on improving scalability and user experience for Ethereum and other blockchain ecosystems. It also collaborates heavily with DeFi, NFT, and gaming projects.
Conclusion
With this recent token explosion, the world of cryptocurrencies is more chaotic (and potentially profitable) than ever. Founders, developers and CEOs must adapt. Be ready to adjust your strategies and tactics to gain a competitive advantage. How can you embrace new technologies like artificial intelligence or machine learning to stay ahead of the curve?
The cryptocurrency market is evolving with this tsunami of tokens as investors are divided into two camps. Will FOMO (fear of missing out) cause your audience to dive headfirst into memecoin craze? Or does FUD (fear, uncertainty and doubt) force your prospects to hold onto Bitcoin and laugh at the memecoin chaos from the sidelines? Do your research and experiment.
Is simple. The future of your project is in your hands. Make it count. Those who can navigate this dynamic, memecoin-filled landscape with innovation, integrity, and adaptability are poised to thrive. The world of cryptocurrencies is constantly evolving. Stay afloat, stay innovative and stay connected.