Is Culture the Public Blockchain's "Hard Currency"?

By: blockbeats|2025/03/26 05:30:04

Original Article Title: Culturementals Are the New Fundamentals
Original Article Authors: @13300RPM, @FourPillarsFP Researchers
Original Article Translation: zhouzhou, BlockBeats

Editor's Note: The competition in the crypto industry is shifting from a technological race to a cultural resonance, with Culture Chains emerging as a new trend. Technology is now "good enough," and the key to the future lies in community atmosphere and resonance. Investors should focus on believers, inside jokes, and community culture, rather than just code performance. Culture Chains provide exclusive ecosystems for fans and creators, but they also face challenges such as excessive speculation and liquidity fragmentation. Successful Culture Chains need a strong community, open development, and composability to truly become the core battleground of the next cycle.

Below is the original content (slightly reorganized for better readability):

Imagine a blockchain where the killer feature is not a disruptive consensus algorithm or astonishing TPS, but rather, ambiance. On this chain, people gather not because of lower Gas fees, but due to inside jokes, shared identity, and meme culture. Sounds absurd? Yet the crypto world time and time again proves that culture often surpasses technology.

Think of $DOGE (and a dozen other similar coins), a complete joke born out of a meme, yet inexplicably skyrocketed to a multi-billion dollar asset valuation without any technological innovation. Bitcoin's early development relied more on cypherpunk beliefs than the code itself. Ethereum's most loyal users often say, "I came for the tech, but stayed for the community." Events like ETHGlobal hackathons and global Devcons have long transcended the code itself, becoming cultural bonds among developers.

The crypto world has evolved into a stage where participation itself is the product—a immersive social game that blends finance, ideology, and culture.

Welcome to the era of Culture Chains: where the core of blockchain is not what it can do, but who it's for.

1. Culture as Product

Culture Chains are a new vertical SaaS for fan economies.

In simple terms, Culture Chains are blockchains imbued with cultural spirit—they are tailored for specific communities, subcultures, or movements. Unlike generic L1s (trying to meet all needs) or Appchains running a single dapp, Culture Chains occupy a unique middle ground. They are designed as playgrounds for those who share the same ambiance or goal, accommodating multiple applications and serving a specific community.

From this definition, perhaps it can be said that every blockchain has its own culture. Ethereum blends cypherpunk ethos with institutionalized thinking, emphasizing decentralization, programmability, and neutrality. In contrast, Solana is full of speed, chaos, and financial speculation, shaped by its high throughput, low-cost architecture.

However, the difference is that these cultural identities are more of a byproduct of technical design rather than a deliberate shaping. General blockchains tend to spontaneously form some kind of unique culture, while cultural chains are fundamentally designed for a cultural economy from the protocol level. The real distinction lies in the intentionality behind it.

Imagine a blockchain where every dapp serves anime art collectors, hardcore degen gamers, RPG enthusiasts, or fans of a specific NFT ecosystem. Users use the same jargon, rally around the same hot topics, and laugh at the same memes. This is more like a digital city-state running on a blockchain.

If a general-purpose public chain is more like a diverse but chaotic international metropolis, then a cultural chain is more like a theme park or a Renaissance fair—a highly customized, precisely tailored to the needs of a specific audience. By focusing on a niche community, it can be fully optimized in terms of technology, governance, tokenomics, etc., to better serve the values and needs of that community.

They are blockchains designed for cultural monetization, expansion, and preservation.

This design can take various forms:

· Infrastructure optimized for specific creators or media flows

· Built-in revenue sharing or tokenized copyright split mechanisms

· Governance models tailored to creative communities

· Incentive mechanisms for fans to participate, fund, and discover new content

Essentially, cultural chains are an evolution of the concept of "vertical blockchains": instead of trying to be all-encompassing, they focus on a niche area. Their goal is to be the "preferred blockchain for X field," where X represents a community or application scenario with cultural cohesion. The assumption behind this idea is that by focusing on a specific cultural niche, they can more effectively bring together like-minded users and developers and create a stronger network effect than a general-purpose public chain. Their strength comes from focus.

2. Code Can Be Copied, but Atmosphere Cannot

In the world of crypto, community is more important than technology. When choosing a chain, pay attention to the number of believers on each block, not just TPS.

Is culture really more important than code? Many tech geeks scoff at this notion. After all, blockchain infrastructure involves mathematics, cryptography, engineering, game theory—it's "hardcore tech." However, despite the idea that code is law, in the crypto world, culture is king. In the end, it is the social layer that determines which "laws" (code) will truly be adopted.

A perfect protocol, if not believed in by anyone, is a dead end; whereas a rough Meme coin, with a group of fervent believers, is enough to move the market.

Essentially, a crypto network is a social network with banking functionality, and human nature is the core driver of adoption: FOMO, tribalism, identity, belief. These things cannot be directly forked on GitHub.

Think about Bitcoin Cash, a fork of Bitcoin—little technical changes, but significant cultural divide (big blocks vs. small blocks), ultimately determining the outcome. The Ethereum community also once forked into Ethereum Classic due to ideological differences—same code, but different culture, leading to very different results.

Meme and narrative hold atomic-level power in this industry

Remember DeFi Summer? Yield Farming was booming back then, driving this wave was not only smart contracts, but also a bunch of degens shouting "farm and dump" and "all in ape," igniting this movement together. Look at the NFT craze: why did JPEGs on Ethereum skyrocket in value? Not because ERC-721 technology is so magical (it's actually quite simple), but because a group of digital art collectors, show-offs, and community players, revolving around projects like CryptoPunks, Bored Apes, built a unique cultural circle. The technology provides verifiable ownership, but what truly drives the craze is social prestige and community belonging.

The long-term success of a public chain often depends on its community moat. This is the paradox of the crypto world: the strongest moat is not hash power, nor TPS, but belief. Value not only exists in the code, but also in the culture that surrounds it.

This unquantifiable "magic" can make people tattoo the project's logo on their arm or hold onto it even during a 90% drawdown. It can turn early users into evangelists, making a product "inevitable." The cultural chain is based on this insight, betting on the power of niche enthusiast communities rather than a mass-market general solution.

3. Stop Chasing TAM, Start with Tribes

A general-purpose blockchain hopes for users to come, a cultural chain inherently comes with users.

But the key question is: is this model really viable? A new blockchain paradigm must be technically feasible and economically scalable to truly survive.

Unlike the past narratives of blockchain trying to disrupt entire industries, the concept of Culture Chains has taken a more pragmatic approach. Instead of requiring a complete rebuild of infrastructure from scratch, Culture Chains are based on existing blockchain frameworks, optimized and refined for cultural economies.

Today, advancements in technology (interestingly, technology has empowered culture in return) have made creating a new chain easier than ever before. Frameworks such as OP Stack, Arbitrum Orbit, Cosmos SDK, along with modular blockchains, Data Availability Layers (DA Layers), and Rollup as a Service (RAAS) solutions mean that you don't need a Ph.D. in distributed systems to launch a new blockchain.

This means that Culture Chains have the technical feasibility today, rather than being a distant future fantasy.

Critics often question the Total Addressable Market (TAM) of Culture Chains, arguing that focusing on niche communities will limit their growth. But when viewed in a larger context, this logic doesn't hold up: BTS has an estimated global fanbase of 90 million, nearly three times higher than Solana's all-time high Monthly Active Users (MAU) of 31 million.

More importantly, fan communities are not merely "existing"; they consume, organize, and take action. They are not passive users but an as yet untapped cultural infrastructure.

Stop fixating on TAM and start measuring TAC (Total Addressable Culture).

4. Beyond Narratives: Real Projects, Real Value

Culture Chains are not just conceptual narratives; they are real-world projects that have already been implemented and attracted users who truly care about them.

Currently, there are some early projects embodying this concept:

Story: An Open Story Universe on the Blockchain

Imagine the next phenomenon in fantasy universes or comic IPs not coming from a single studio but co-created by an entire on-chain community. @StoryProtocol is betting on this idea.

Story is a new L1 project aiming to become the decentralized IP infrastructure of the internet—a collaborative platform where creators can on-chain collaborate to build and remix stories, tracking contributions and ownership via blockchain.

Its technical core is the provenance mechanism of creative works, but the real highlight is at the cultural level. Story seeks to nurture a storytelling community, where creators collaborate to build a worldview and transform fan communities into DAOs.

If Story succeeds, the next \"Harry Potter\"-level cultural phenomenon could be a product of decentralized co-creation—memes, fan creations, and community lore will all intertwine, secured by the blockchain for authenticity and ownership.

Story represents a paradigm shift: it sees the blockchain as a canvas for carrying memes, myths, and collaborative creativity, not just as a cold technology.

Animecoin: The On-Chain Link of Global Anime Culture

The anime culture sphere is vast and borderless, connecting hundreds of millions of people worldwide through their love for Japanese animation. Now, imagine if the entire anime community had a common token to rally around, what would happen? This is precisely what @animecoin ($ANIME) aims to achieve.

As a newly launched \"culture coin,\" Animecoin aims to bring together anime enthusiasts on the blockchain. The idea is straightforward: to transform existing active subcultures into a crypto ecosystem. For a more in-depth analysis, refer to the two reports, \"Anime Needs Web3\" and \"The Future of $ANIME is Yours.\"

Animecoin can be used for:

· Funding fan-driven projects, such as fan creations, independent animations, etc.;

· Purchasing and trading anime-related digital assets, such as NFT art, virtual collectibles;

· Community governance, allowing token holders to vote in support of emerging anime creators.

But more than specific use cases, $ANIME is more like a cultural flag—a way for global anime fans to have a shared economic identity.

Currently in its early stages, but even if only a small fraction of the global otaku population joins, it signifies the birth of millions of new crypto users, who are likely more concerned about Crunchyroll (an anime streaming platform) than encryption technology itself.

Animecoin fully embodies the core concept of a \"cultural chain\": it does not require people to care about encryption for the sake of encryption but rather builds a crypto ecosystem around people's pre-existing beloved identities and cultures.

5. The Fracture of Cultural Economy: When Fans Become Investors

However, the biggest risk of a cultural chain comes from a concerning question: Can fans really become investors?

Consumer culture and investment are fundamentally two very different behaviors. Unless someone is already deeply involved in both crypto and a particular cultural community, it is hard to assume that these two entirely different groups will naturally merge. Perhaps the idea that a "fan community can evolve into an investor community" is fundamentally just an overly optimistic simplification.

Secondly, the more realistic risk is this: when speculative demand overwhelms real cultural participation, the economic system will collapse. This has been validated numerous times in past Play-to-Earn (P2E) games—when the economic drive is no longer based on actual demand but is inflated by hype, a bubble burst is only a matter of time. The cultural chain also faces the same threat: if financial incentives replace cultural identity, the hype will unwittingly hollow out the entire ecosystem.

Lastly, the issue of fragmentation and liquidity islands. If every niche culture carves out its own blockchain, it might recreate the isolation problem that we originally sought to solve with interoperability. To avoid this, cultural chains must have composable infrastructure and bridge the liquidity of the mainstream crypto economy, or they may find themselves trapped in their isolated world.

6. Moat Built by MEME

If you can't rock this hoodie, don't bet on this chain. Despite mentioning some potential risks earlier, I still believe in cultural chains, and the reason is simple: once they take off, the impact is exponential.

In the crypto industry, technological advantages are often fleeting—today's "black tech" will become tomorrow's standard feature. However, the social advantage (social alpha) remains one of the few truly sustainable moats. For investors and builders, leveraging culture is not a shortcut but a strategic "force multiplier."

For VCs and Investors:

When evaluating a cultural chain, don't just look at TPS (transactions per second) and GitHub commit history, but also ask:

· Does this community have a "soul"?

· Are there true believers who will hold on even in a bear market?

It may sound a bit esoteric, but this is actually a crucial early signal that can indicate whether a project can grow organically. A project with average technology but a MEME army may grow faster than a project with top-notch technology but lacking cultural resonance. In other words, investing in a cultural chain is more like investing in a social network: what you should focus on is not the code's efficiency but the community's activity, sense of identity, and network effects.

For Web3 Entrepreneurs:

The cultural chain has given you an opportunity to accurately meet user needs. You are not blindly searching for users in an unknown market but are directly entering a highly matched community that is eager for the product you provide.

However, this also means that you cannot "hide" behind technology—the community's feedback is immediate and very direct. The best approach is to build openly and transparently, allowing the community to participate in the narrative. In addition to technology, consider "urban planning": community governance, social features, event planning, storytelling... In the cultural chain, social experience (social UX) and UI/UX are equally important.

For Speculators, Creators, and Everyday Players:

The cultural chain is a playground that can turn your passion from "niche" to "mainstream." If you have been deeply involved in an ecosystem but feel limited by a general-purpose blockchain, you now have your own stage.

However, at the same time, the responsibility of maintaining the community atmosphere falls on you. In the cultural chain, you are both content and value. If managed properly, you may become the next builder of the early Ethereum community; but if mismanaged, you may be consumed by internal conflicts. Choose your tribe carefully.

7. The Next Cycle Belongs to the "Believers"

From 2010 to the beginning of 2020, competition in the crypto world revolved around TPS (transactions per second) and technological roadmaps. But those days are over. Now, many public chains are already "good enough" at a purely technical level, and the core of the next round of competition will be the cultural density within each block.

In the late 2020s, standout public chains may not necessarily be those theoretically capable of processing millions of TPS but those that can support millions of memes, millions of high-quality interactions, and gather millions of believers.

So, if you are looking for the next wave of crypto trends, don't just ask, "What can the code of this chain do?" Instead, ask, "What does this community believe in?" Look for places with inside jokes, a sense of ritual, and a strong cultural atmosphere because this is the breeding ground of the cultural chain and may also give birth to the next generation of public chains.

Source: "Original Article Link"

On May 13, S&P Dow Jones Indices announced that Coinbase would officially replace Discover Financial Services in the S&P 500 on May 19. While other companies like Block and MicroStrategy, closely tied to Bitcoin, were already part of the S&P 500, Coinbase became the first cryptocurrency exchange whose primary business is in the index. This also signifies that cryptocurrency is gradually moving from the fringes to the mainstream in the U.S.

On the day of the announcement, Coinbase's stock price surged by 23%, surpassing the $250 mark. However, just 3 days later, Coinbase was hit by two consecutive events: a hack where employees were bribed to steal customer data and a demand for a $20 million ransom, and an investigation by the U.S. Securities and Exchange Commission (SEC) into the authenticity of its claim of having over 100 million "verified users" in its securities filings and marketing materials. These two events acted as mini-bombs, and at the time of writing, Coinbase's stock had already dropped by over 7.3%.

Coincidentally, Discover Financial Services, being replaced by Coinbase, can also be considered the "Coinbase" of the previous payment era. Discover is a U.S.-based digital banking and payment services company headquartered in Illinois, founded in 1960. Its payment network, Discover Network, is the fourth largest payment network apart from Visa, Mastercard, and American Express.

In April, after the approval of the acquisition of Discover by the sixth-largest U.S. bank, Capital One, this well-established digital banking company of over 60 years smoothly handed over its S&P 500 "seat" to this emerging cryptocurrency "bank." This unexpected coincidence also portrayed the handover between the new and old eras in Coinbase's entry into the S&P 500, resembling a relay race scene. However, this relay baton also brought Coinbase's accumulated "external troubles and internal strife" to a tipping point.

Side Effects of ETFs

Over the past decade, cryptocurrency exchanges have been the most stable "profit machines." They play a role in providing liquidity to the entire industry and rely on trading fees to sustain their operations. However, with the comprehensive rollout of ETF products in the U.S. market, this profit model is facing unprecedented challenges. As the leader in the "American stack," with over 80% of its business coming from the U.S., Coinbase is most affected by this.

Starting from the approval of Bitcoin and Ethereum spot ETFs, traditional financial capital has significantly onboarded users and funds that originally belonged to exchanges in a more cost-effective, compliant, and transparent manner. The transaction fee revenue of cryptocurrency exchanges has started to decline, and this trend may further intensify in the coming months.

According to Coinbase's 2024 Q4 financial report, the platform's total trading revenue was $417 million, a 45% year-on-year decrease. The contribution of BTC and ETH's trading revenue dropped from 65% in the same period last year to less than 50%.

This decline is not a result of a decrease in market enthusiasm. In fact, since the approval of the Bitcoin ETF in January 2024, the inflow of BTC into the U.S. market has continued to reach new highs, with asset management giants like BlackRock and Fidelity rapidly expanding their management scale. Data shows that BlackRock's iShares Bitcoin ETF (IBIT) alone has surpassed $17 billion in assets under management. As of mid-May 2025, the cumulative net inflow of 11 major institutional Bitcoin spot ETFs on the market has exceeded $41.5 billion, with a total net asset value of $1214.69 billion, accounting for approximately 5.91% of the total Bitcoin market capitalization.

Chart showing the trend of net outflows for Grayscale among the 11 institutions

Institutional investors and some retail investors are shifting towards ETF products, partly due to compliance and tax considerations. On one hand, ETFs have much lower trading costs compared to cryptocurrency exchanges. While Coinbase's spot trading fee rate varies annually in a tiered manner but averages around 1.49%, for example, the management fee for IBIT ETF is only 0.25%, and the majority of ETF institution fees fluctuate around 0.15% to 0.25%.

In other words, the more rational users are, the more likely they are to move from exchanges to ETF products, especially for investors aiming for long-term holdings.

According to multiple sources, several institutions, including VanEck and Grayscale, have submitted applications to the SEC for a Solana (SOL) ETF, with some institutions also planning to submit an XRP ETF proposal. Once approved, this may trigger a new round of fund migration. According to a report submitted by Coinbase to the SEC, as of April, the platform's trading revenue from XRP and Solana accounted for 18% and 10%, nearly one-third of the platform's fee revenue.

However, the Bitcoin and Ethereum ETFs passed in 2024 also reduced the fees for these two tokens on Coinbase from 30% and 15% to 26% and 10%, respectively. If the SOL and XRP ETFs are approved, it will further undermine the core fee revenue of exchanges like Coinbase.

The expansion of ETF products is gradually weakening the financial intermediary status of cryptocurrency exchanges. From their original roles as matchmakers and clearers to now gradually becoming mere "on-ramps and off-ramps" for funds, exchanges are seeing their marginal value squeezed by ETFs.

Robinhood Takes a Stand, Traditional Brokerages Join the Fray

On May 12, 2025, SEC Chairman Paul S. Atkins gave a keynote speech at the Tokenization and Cryptocurrency Working Group roundtable. The theme of his speech revolved around "It is a new day at the SEC," where he indicated that the SEC would not approach enforcement and regulation the same way as before but would instead pave the way for cryptocurrency assets in the U.S. market.

With signs of cryptocurrency compliance such as the SEC's "NEW DAY" declaration, an increasing number of traditional brokerages are attempting to enter the cryptocurrency industry. One of the most representative cases is the well-known U.S. brokerage Robinhood, which began expanding its crypto business in 2018. By the time of its IPO in 2021, Robinhood's crypto business revenue accounted for over 50% of the company, with a significant boost from the Dogecoin "moonshot" promoted by Musk.

In Q1 2025 earnings report, Robinhood showcased strong growth, especially in revenue from cryptocurrency and options trading. Fueled by Trump's Memecoin, cryptocurrency-related revenue reached $250 million, nearly doubling year-over-year. Consequently, Robinhood Gold subscription users reached 3.5 million, a 90% increase from the previous year, with the rapid growth of Robinhood Gold providing the company with a stable source of income.

Meanwhile, RobinHood is actively pursuing acquisitions in the cryptocurrency space. In 2024, it announced a $2 billion acquisition of the long-standing European cryptocurrency exchange Bitstamp. Additionally, Canada's largest cryptocurrency CEX, WonderFi, which recently went public on the Toronto Stock Exchange, also announced its integration with RobinHood Crypto. After obtaining virtual asset licenses in the UK, Canada, Singapore, and other markets, RobinHood has taken a proactive approach in the compliant cryptocurrency trading market.

Furthermore, an increasing number of brokerage firms are exploring the same path. Futu Securities, Tiger Brokers, and others are also dipping their toes into cryptocurrency trading, with some having applied for or obtained the VA license from the Hong Kong SFC. Although their user bases are currently small, traditional brokerages have a natural advantage in user trust, regulatory licenses, and low fee structures. This could pose a threat to native cryptocurrency platforms in the future.

User Data Breach: Is Coinbase Still Secure?

In April 2025, security researchers discovered that some Coinbase user data was leaked on the dark web. While the platform initially responded by attributing it to a "technical misinformation," it still raised concerns among users regarding its security and privacy protection. Just two days before Dow Jones Indexes announced Coinbase's addition to the S&P 500 Index, on May 11, 2025, Coinbase received an email from an unknown threat actor claiming to have obtained customer account information and internal documents, demanding a $20 million ransom to keep the data private. Subsequent investigations confirmed the data breach.

Cybercriminals obtained the data by bribing overseas customer service agents and support staff, mainly in "non-U.S. regions such as India." These agents abused their access to Coinbase's internal customer support system and stole customer data. As early as February this year, blockchain detective ZachXBT revealed on X platform that between December 2024 and January 2025, Coinbase users lost over $65 million to social engineering scams, with the actual amount potentially higher.

Among the victims was a well-known figure, 67-year-old Ed Suman, an established artist in the art world for nearly two decades, having been involved in the creation of artworks such as Jeff Koons' "Balloon Dog" sculpture. Earlier this year, he fell victim to an impersonation scam involving fake Coinbase customer support, resulting in a loss of over $2 million in cryptocurrency. ZachXBT critiqued Coinbase for its inadequate handling of such scams, noting that other major exchanges have not faced similar issues and recommending Coinbase to enhance its security measures.

Amidst a series of ongoing social engineering incidents, although there has not been any impact on user assets at the technical level so far, it has raised concerns among many retail and institutional investors. Especially institutions holding massive assets on Coinbase. Just considering the U.S. BTC ETF institutions, as of mid-May 2025, they collectively hold nearly 840,000 BTC, and 75% of these are custodied by Coinbase. If we price BTC at $100,000, this amount reaches a staggering $63 billion, which is equivalent to the nominal GDP of two Iceland in the year 2024.

Visualization: ChatGPT, Source: Farside

In addition, Coinbase Custody also serves over 300 institutional clients, including hedge funds, family offices, pension funds, and endowments. As of the Q1 2025 financial report, Coinbase's total assets under management (including institutional and retail clients) reached $404 billion. The specific amount of institutional custodied assets was not explicitly disclosed in the latest report, but it should still be over 50% based on the Q4 2024 report.

Visualization: ChatGPT

Once this security barrier is breached, not only could the rate of user attrition far exceed expectations, but more importantly, institutional trust in it would undermine the foundation of its business. Therefore, after a hacking event, Coinbase's stock price plummeted significantly.

CEXs are All in Self-Rescue Mode

Facing a decline in spot trading fee revenue, Coinbase is also accelerating its transformation, attempting to find growth opportunities in derivatives and emerging assets. Coinbase acquired a stake in the options platform Deribit at the end of 2024 and announced the official launch of perpetual contract products in 2025. This acquisition fills in Coinbase's gap in options trading and its relatively small global market share.

Deribit has a strong presence in non-U.S. markets, especially in Asia and Europe. The acquisition has enabled Coinbase to gain a dominant position in bitcoin and ethereum options trading on Deribit, accounting for approximately 80% of the global options trading volume, with daily trading volume remaining above $2 billion.

Meanwhile, 80-90% of Deribit's customer base consists of institutional investors, with their professionalism and liquidity in the Bitcoin and Ethereum options market highly favored by institutions. Coinbase's compliance advantage, coupled with its already robust institutional ecosystem, makes it even more suitable. By using institutions as an entry point, it can face the squeeze from giants like Binance and OKX in the derivatives market.

Facing a similar dilemma is Kraken, which is attempting to replicate Binance Futures' model in non-U.S. markets. Since the derivatives market relies more on professional users, fee rates are relatively higher and stickiness is stronger, making it a significant source of revenue for exchanges. In the first half of 2025, Kraken completed the acquisition of TradeStation Crypto and a futures exchange, aiming to build a complete derivatives trading ecosystem to hedge the risk of declining spot transaction fee income.

With the surge of Memecoin in 2024, Binance, OKX, and various CEX platforms began massively listing small-market-cap, highly volatile tokens to activate active trading users. Due to the wealth effect and trading activity of Memecoins, Coinbase was also forced to join the battle, successively listing popular tokens from the Solana ecosystem such as BOOK OF MEME and Dogwifhat. Although these coins are controversial, they are frequently traded, with fee rates several times higher than mainstream coins, serving as a "blood-boosting" method for spot trading.

However, due to its status as a publicly traded company, this practice is a riskier endeavor for Coinbase. Even in the current crypto-friendly environment, the SEC is still investigating whether tokens like SOL, ADA, and SAND constitute securities.

In addition to the forced transformation strategies carried out by the aforementioned CEXs, they are also starting to lay out RWAs and the most talked-about stablecoin payment fields, such as the PYUSD launched through a collaboration between Coinbase and Paypal, Coinbase's support for the Euro stablecoin EURC by Circle that complies with EU MiCA regulatory requirements, or the USD1 launched through a collaboration between Binance and WIFL. In the increasingly crowded trading field, many CEXs have shifted their focus from just the trading market to the application field.

The golden age of transaction fees has quietly ended, and the second half of the crypto exchange platform game has silently begun.

Key Market Insights for May 16th, how much did you miss out on?

1. On-chain Flows: $111.3M inflow to Ethereum this week; $237.6M outflow from Berachain 2. Largest Price Swings: $ETHFI, $NEIRO 3. Top News: Data: Solana Network's revenue reached $7.9M on the 13th, surpassing the sum of all other L1 and L2 chains

MOG Coin Skyrockets as Elon Musk and Garry Tan Embrace "mog/acc" Identity

「mog/acc」 is rapidly sweeping through various figures, from Elon Musk to Garry Tan, boosting the project's visibility and ultimately driving up the price.

STARTUP's Price Surges 40x in 30 Minutes: How did he become the Emotion King of Believe?

He is both a KOL and understands the market script, playing a game where attention is the currency.

Key Market Intelligence on May 14th, how much did you miss out on?

Within 24 hours, GOONC's market cap soared to 70 million, could GOONC be the next billion-dollar dog on the Believe platform?

Bitcoin has broken $100,000, Ethereum has surpassed 2500, and is Solana's hot streak about to make a comeback?

The current market is in a state of macro euphoria, with GOONC riding the wave today, skyrocketing 10x in just a few hours, reaching a market cap of tens of millions of dollars, trading volume soaring past 50 million, and rumors swirling that the developer may be from OpenAI (unconfirmed but intriguing enough).

The "gooning" Culture in Forums

A ludicrous and absurd Solana meme that some actually buy into.

GOONC is a meme coin that has sprouted from the "gooning" subculture, offering no technological innovation or practical use, its sole function being speculation.

It takes inspiration from an NSFW term "gooning," which refers to a person being deeply immersed in certain content (you know what), eventually entering a nearly religious-like trance.

In Reddit (such as r/GOONED, r/GoonCaves) and some counterculture media outlets (such as MEL Magazine in 2020), "gooning" has gradually transitioned from an adult label to a meme-addicted, digital content and virtual self-indulgence synonym, arguably the epitome of Degen spirit.

GOONC is playing around with this concept, packaging the addictive nature, uselessness, and irony of gooning into a tradable financial product. The project team has made it clear: "We do not solve blockchain problems, we only trade absurdity." Blunt but oddly genuine.

GOONC launched on May 13, 2025, using the meme coin launch platform Believe App's LaunchCoin module on Solana. This tool is highly Degen: zero technical barriers, a few clicks to create a coin, perfect for projects like GOONC that can come up with ideas out of the blue.

The mastermind behind GOONC is also quite something and is the most talked-about, with KOL @basedalexandoor on X platform (alias "Pata van Goon") personally involved. His profile even caught the attention of Marc Andreessen, co-founder of a16z, making onlookers unable to resist speculating if GOONC has a hint of OpenAI lineage.

While this 'OpenAI Endorsement' is currently just community speculation, it is definitely a good card to play to fuel hype. Saying "we are pure speculation" on one hand, while tagging a few "AI + a16z" on the other.

From Wasteland to Moon in One Night

GOONC took off as soon as it launched. After its launch on May 13, 2025, its market capitalization skyrocketed to $22 million within 4 hours, with a trading volume exceeding $25.6 million in 24 hours. According to platform data, the first day of trading saw an astonishing +41,100% surge, soaring from $0.0000001 to $0.02, becoming a "missed-the-boat" situation.

GOONC quickly formed an active trading community post-launch, with a lot of discussion and trading signals appearing on X platform (such as the 292x return signal provided by DeBot). Liquidity pools on exchanges like Raydium and Meteora grew rapidly, supporting high trading volumes and price increases.

The real climax occurred between May 13 and May 14, with the market cap rising to $5.5 million in the morning and directly surpassing $55 million in the afternoon. By the 14th, it briefly approached a $70 million market cap, with the trading volume soaring to $59 million. Some community members even posted screenshots claiming an increase of +85,000%, creating a new myth out of the ruins.

As of 1:30 pm on May 14, the price stabilized around $0.039, with a total market cap and FDV both around $39.6 million, and a 24-hour trading volume of $5.43 million. Active platforms include XT.COM, LBank, Meteora, and others.

Although there was a slight pullback from the peak ($0.07), the coin's popularity remains strong. For a coin that relies purely on "irony + community + X post" to thrive, this performance is already at a stellar level.

Currently, the background of the token's development team is not transparent, increasing the potential risk of a rug pull. Rugcheck.xyz warns that the creator of the GOONC contract may have permission to modify the contract (e.g., change fees or mint additional tokens), posing certain security risks.

Community members speculate that the meteoric rise of GOONC may be the "last hurrah".

After Surging 40%, Has Ethereum Price Peaked Upon Exiting the Craze?

Whether you are an insider or an outsider, these days you must be familiar with the news about Ethereum. The reason is simple, causing Ethereum enthusiasts to sigh with emotion and almost throwing off-guard those who defend Ethereum, Ethereum, with a "3-day surge of 40%," climbed to the top of the Douyin Hot List.

Where Does the Rally Come From?

As we all know, Ethereum launched the Pectra upgrade on May 7th. This most significant network upgrade since early 2024 integrates the Prague execution layer hard fork and the Electra consensus layer upgrade, significantly improving Ethereum's performance through 11 improvement proposals. The account abstraction feature (EIP-7702) allows users to flexibly manage wallets through social media accounts or multi-signature schemes, reducing the user threshold, attracting more users and developers. The staking mechanism optimization increases the validator ETH cap from 32ETH to 2048ETH and introduces a flexible withdrawal method, making it easier for institutions and individuals to participate in network security, enhancing the market's confidence in Ethereum's long-term value.

At the same time, Pectra optimized the interaction efficiency of Layer 2 networks such as Arbitrum and Optimism, making transactions faster and cheaper, leading to a surge in on-chain activity. As a crucial step for Ethereum's transition from "2G" to "5G," the Pectra upgrade not only enhances network vitality but also "recharges confidence" in the market, directly driving the price increase.

Related Reading: "Ethereum Skyrockets 22% in One Day, E Enthusiasts Rejoice"

It's not just Ethereum itself, as Wall Street also brought important bullish news.

The world's largest asset management company, BlackRock, proposed to the SEC allowing Ethereum ETFs for staking. This proposal is expected to elevate Ethereum ETFs from a mere investment tool to a bond-like "interest-bearing asset," bringing investors both capital appreciation and passive income, igniting market optimism about Ethereum's future potential.

Specifically, BlackRock has proposed to amend its S-1 filing to allow investors to create and redeem ETF shares directly with Ethereum instead of the U.S. dollar (i.e., in-kind redemption). This move, combined with its $2.9 billion BUIDL Fund launched in March 2024, aims to deepen the integration of traditional finance with blockchain. The BUIDL Fund is a tokenized fund operating on the Ethereum network, investing in traditional assets such as U.S. Treasury bonds. This setup is highly attractive to institutional investors, as they can not only benefit from Ethereum's price appreciation but also earn stable cash flow through staking.

Robert Mitchnick, BlackRock's Head of Digital Assets, stated in a CNBC interview in March 2025 that the addition of staking functionality will significantly enhance the appeal of the Ethereum ETF. He admitted that when the Ethereum spot ETF was launched in July 2024 without staking functionality, the market demand was lackluster, and staking could be the key to reversing this trend.

Meanwhile, the SEC's shifting stance on cryptocurrency regulation has also fueled this upward trend. During the tenure of the previous SEC chairman, the regulatory approach was tough, and staking was strictly viewed through the Howey test as a potential unregistered security. Therefore, when approving the Ethereum spot ETF in May 2024, staking functionality was explicitly prohibited.

However, with Trump back in the White House and Paul Atkins taking over the SEC, there has been a noticeable relaxation in crypto regulation. Apart from BlackRock, ETF issuers such as Invesco Galaxy, VanEck, WisdomTree, and 21Shares have also submitted applications for similar staking and in-kind redemption.

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If staking ETFs are approved, the benefits are likely to go beyond price appreciation. The introduction of staking functionality could redefine the role of crypto assets, making them more similar to traditional financial products that provide returns and value appreciation, thereby driving Ethereum closer to mainstream finance.

Currently, the SEC still needs to address several decisions related to crypto ETFs, including whether to approve ETFs for Solana, XRP, Litecoin, and even Dogecoin. With the calls for an "altcoin season" growing louder, Ethereum's strong performance may just be the beginning of a larger crypto market frenzy.

In addition, the Trump family-related DeFi project WLFI is also bullish on this wave of rise, with frequent on-chain activities. According to on-chain data analyst @ai_9684xtpa's monitoring, a WLFI-related address is currently borrowing coins to go long on ETH, borrowing 4 million U from Aave to buy 1590 ETH at an average price of $2515 per ETH.

Has Ethereum's Price Peaked in This Wave?

For this epic surge of Ethereum after half a year of silence, the community has indeed gained more confidence and hope, which has also led to a revival of the entire altcoin market. However, amidst the joy, there are also voices of pessimism. Below is a summary conducted by BlockBeats based on community discussions.

The optimists point out that the current market structure is similar to the eve of the bull markets in 2016 and 2020, predicting a life-changing surge in the next 3-6 months, where some altcoins may even achieve astonishing single-day gains of up to 40%.

@liuwei16602825 stated that this surge signifies the return of the bull market as a sure thing. There is no need to worry about a pullback. The driving force behind the surge uses a high-cost isolated operation, fearing a drop more than any retail investor and will definitely do everything to support the price.

Related Reading: "Ethereum Leads the Surge Triggering the 'Altcoin Season' Speculation, How Do Traders View the Future Market?"

The bears mainly believe that this surge is different from the bull market of 2021, as the current market lacks the confidence of large-scale retail investors entering and holding positions for the long term, with funds rotating too quickly.

@market_beggar observed that a Bitfinex E/B whale has started to close positions and believes that if this whale maintains its high-speed position-closing operation for the next few days, it can be inferred that the whale no longer sees the upside potential of ETH, preparing to take profits and exit. The closing time will be a key focus going forward.

@FLS_OTC stated that there are still many uncertainties at the macro level, and the liquidity cannot support a major bull market. At this stage, it is a "last hurrah," not a complete reversal, and will continue to remain in a short position.

@off_thetarget believes that after ETH transitioned from POW to POS, it lost the "gold standard" of mining machine power cost support. The staking economic model led to a breakdown in value anchoring. Additionally, the L2 ecosystem (such as Starknet, zkSync, etc.) suffered from liquidity fragmentation, failing to establish an effective capital inflow mechanism, causing the collapse of the split disc pattern. Furthermore, the ETH community's excessive pursuit of technical narratives divorced from real-world needs resulted in a weak ecosystem growth. Therefore, he believes that ETH's intrinsic value system has crumbled, and the price is bound to plummet to the 800-1200 range, with a decisive short position at 1800.

@Airdrop_Guard, based on the core logic of the "High Probability Trading Strategy," where three sets of underlying logic different trading systems (such as volume depletion, price supply-demand, long/short position funding rate, etc.) simultaneously issue a short signal at the same point (2580), creating a high-probability trading opportunity. He emphasizes that these systems must be based on different algorithms and logics (rather than mere technical indicator overlays). The current ETH trend aligns with the short conditions in multiple independent dimensions of his trading system, hence the decision to short.

Overall, Bitcoin still maintains over 54% market dominance, and institutional funds' continued preference for it may limit the altcoin's upward potential. The market's future direction will depend on multiple factors, such as Bitcoin's price trend, global macroeconomic conditions, and whether funds can effectively rotate from Bitcoin to the altcoin sector.

Although Ethereum's recent leadership in the market has brought about optimistic sentiment, investors still need to remain rational as different sectors of altcoins are likely to show divergence in trends. Whether this round of Ethereum's rise will usher in a true altcoin frenzy may require more time and conducive conditions.

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Binance Sparks "Delist Concept": Can CEX Still Produce the Next ALPACA?

On April 24, Binance announced that it would delist four tokens, including Alpaca Finance ($ALPACA), on May 2, and cease trading of these pairs' perpetual futures contracts at 00:00 on May 1, 2025, Beijing time. Fast forward to the last day of perpetual futures trading delisting, ALPACA surged on the liquidation heat map. Over the past 24 hours, a total of $52.21 million evaporated in ALPACA's contract trading, exceeding the sum of the token's liquidation volume over the past two years.

Historically, when a token is listed on Binance, many traders would buy the news instantly ("Buy the News"). As the Binance listing effect gradually waned, traders found another path, which is to short sell the tokens set to be delisted from Binance ("Sell the News"). This strategy often has a very high success rate. However, as traders followed this path, they encountered the Alpaca on their short-selling journey.

The Long and Short of ALPACA's Journey

Every thrilling market manipulation game requires careful preparation. Before Binance's official announcement, on April 10, $ALPACA was ranked 7th in the preliminary list of the second batch of "Vote for Delisting" on Binance, causing its price to plummet almost by half. However, in the five days leading up to Binance's official announcement, from April 19 to April 23, trading volume suddenly surged.

The story traces back to the start of Binance's second round of "Vote for Delisting," where ALPACA was included in the delisting candidates list, ranked 7th among 17 projects. After the completion of Binance's delisting vote count, $ALPACA was included in the projects to be delisted. The market did not react significantly, price fluctuations were not substantial, but trading volumes expanded abnormally, suggesting the entry of "manipulative funds" into the community.

On April 24, Binance officially announced the delisting of the $ALPACA spot trading pair on May 2 and the settlement of the futures contracts on April 30. Following the announcement, the spot price of $ALPACA dropped from $0.0329 to $0.029, with a market cap of only about $5 million. However, what followed were two price "rollercoaster" moments; within an hour, the price surged from $0.029 to $0.0857, an increase of about 195%, only to rapidly drop back to $0.04 within 3 hours. Shorts were caught off guard, and the open interest of contracts surged rapidly, initiating the "long and short grinder" mode.

On April 25, Alpaca Finance officially announced that the trading volume in the past 24 hours had exceeded 1 billion tokens. The liquidity provider had suggested a "minting for stability" to be returned to the treasury after a decrease in trading volume. However, as public opinion began to ferment, opposition filled the community. Alpaca Finance deleted the previous tweet and posted a new one at 9 p.m. on the same night, announcing the cancellation of the minting due to community opposition.

On April 26, Binance amended the contract funding rate rules, shortening the maximum rate cap settlement period to hourly and setting it at up to ±2%. Some high-leverage accounts continued to hold short positions against the high rate and were liquidated. Millions of dollars disappeared within a few hours, with $13 million in short positions vanishing on a token with a market cap of less than $30 million.

With the establishment of this short-selling trend, the price skyrocketed nearly 12 times from a low of $0.029 to $0.3477 within 3 days. The contract's open interest surged significantly, especially with a notable increase in short positions, resembling a microcosm of the Wall Street battle of GME's retail investors. However, this time, the retail investors' opponents could continue to mint additional chips.

From April 26 to April 29, these days were relatively calm, with the price fluctuating around $0.2 to $0.34. On April 29, Binance announced another increase in the rate cap to ±4%. Theoretically, such a high rate would severely impact short positions. If the rate remains at -4%, the bears will face a 96% "cost of ruin" after holding a short position for 24 hours. However, miraculously, the price plummeted from $0.27 to $0.067.

On April 30, with the contract delisting and liquidation scheduled in the final 24 hours, the price continued to experience intense fluctuations. ALPACA's attention peaked, with its highest price reaching $1.2 at one point. From a week before the delisting announcement to the eve of the contract delisting, ALPACA's price surged 40 times, creating an independent market for the token delisted by Binance. The total liquidation volume across the network also reached $50 million, with $42 million in "bearish fuel" beneath the price surge.

Community Discussion

Can the "Buying Shell" Strategy Guarantee Breakeven?

After the first surge of ALPACA, Heyi, the co-founder of Binance, replied to a netizen asking, "Can the teacher who buys the shell guarantee breakeven?" This has also triggered endless speculation among community members.

KOL Tunbtc believes that Heyi's reply to this matter was the starting point of ALPACA's surge. "The large holders of Alpaca's native token, by transferring spot chips, operating rights, and distribution rights, have pledged allegiance to Binance's deep-water core interest circle, allowing it to fully harvest market liquidity before delisting, slaughtering opposing positions." Through a triple path of fees, contract liquidations, and spot volatility, they converted user attention into profits.

He also called on Binance to thoroughly investigate this matter, clarify which market maker is manipulating the candlestick patterns, as ALPACA saw an 18x surge within 24 hours with users liquidated of tens of millions of dollars, while previously GPS's 500% surge was promptly halted, and expressed his sentiment: "All of this is thought-provoking."

Wenze, the founder of Beta Capital, believes that bypassing the regular listing process, buying shells, renaming, and restarting has crossed Binance's bottom line of maintaining listing credibility and brand compliance. Binance sometimes has a high tolerance for market fluctuations, and the OM issuance only adjusts the collateralization ratio, with many projects only allowed for leveraged trading. However, once the project, such as these "shell projects," is identified, it is easily labeled for observation, triggering a vote for delisting, ultimately leading to delisting rather than using mild measures.

The Mastermind Behind the Scenes

Renowned KOL Rui, "YeruiZhang," likened the ALPACA incident to "crazy revenge on an ex" and shared a piece of insider information, claiming that the original whale behind ALPACA was a team that controlled BSC's MEV for a period of time and expressed dissatisfaction with Binance's current management for some reason. The comments section is rampant with speculation that it is BSC's whale 48CLUB, and 48CLUB's Ian even personally appeared to eat "his own melon."

The "Delisting Concept"

With the recent buzz around VOXEL's surge and the wealth effect and discussion surrounding ALPACA, more and more "delisting concepts" have emerged. This concept does not necessarily refer to tokens that have already been delisted but rather shares some common characteristics of delisted tokens.

Famous KOL Chuanmo recently shared on Twitter his logic for choosing concept tokens and listed several tokens, all of which experienced varying degrees of price increase after his recommendation.

His "Concept Delisting" strategy involves selecting low-cap tokens from Bybit and Binance, arranging them by market cap from lowest to highest, with almost 100% price increase for the tokens with the highest holdings/circulating market cap. He buys three tokens daily following this order with a fixed amount, and based on the holdings/circulating supply ratio, he removes tokens that no longer meet the criteria daily and continues to buy the new top three tokens.

Many community members have tested this strategy, with some creating helpful tools. The dreamer Disney "discountifu" has created a dashboard, and Vivek10 early bird "vivekw_eth" has developed a monitoring and alert system that can be directly pushed to WeChat with a copyable link, although it is currently deployed locally and not yet entirely stable.

However, when using tools created for free by community members, please be cautious. While there are many enthusiastic contributors in the community, there are also many uncertain factors in this dark forest.

In an increasingly insular market, retail investors not only have to contend with whales and other retail investors but also must bear many unstable elements. The recent ALPACA incident serves as a warning to us. Whether it's a primary or secondary listing on a top-tier exchange or the "Concept Delisting" approach, we need to make rational asset allocations amidst FOMO to protect our principal and reach the other shore.

The mention of all tokens above does not constitute financial investment advice "NFA".

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