The slight recovery of VC coins will break the dilemma of market failure?

Author: Pzai, Foresight News

In the crypto market in recent months, emerging projects have emerged one after another. It seems that after the huge wave of MEME, the market turned to ecological projects, which led to the warming of altcoins. In terms of market performance, new projects such as KAITO, IP (Story Protocol), Berachain and other new projects have received widespread attention, and the currency price has also increased to varying degrees. Can the recovery of these "VC coins" break the dilemma of market failure? This article will analyze from the dimensions of community-driven and market trends.

KAITO

KAITO is a cryptocurrency-based InfoFi attention distribution layer where Yaps uses AI algorithms on Twitter to extract attention signals and quantify them, and this advanced model also brings new standards to crypto projects. Before KAITO issued coins, several projects (such as Berachain, ANIME, and Story Protocol) provided corresponding airdrops for KAITO Yappers, reflecting its strong influence.

On February 20, KAITO AI officially opened to apply for tokens. As of press time, 28.75% of the 100 million KAITOs have been collected. And in this airdrop carnival, KOLs accounted for the majority of the profits. According to Lookonchain monitoring, the well-known encrypted KOL Ansem received 215,113 KAITO airdrops and sold them for 76 ETH (about 206,000 US dollars). The total supply of KAITO is 1 billion, of which 25% are allocated to core contributors; 32.2% are allocated to ecological and network growth; 10% are allocated to initial community and ecosystem applications; 7.5% are allocated to long-term creator incentives; 5% Allocated to liquidity incentives; 8.3% to early supporters; 10% to the foundation, with its overall circulation of 241 million pieces at the opening.

KAITO's popularity also immediately gained popularity with Binance and launched Binance HODLer airdrop (accounting for 2% of the total). As of press time, KAITO tokens were $1.60, with a market value of $386 million, almost doubled from the low point.

Story Protocol

Story Protocol is an intellectual property blockchain that allows creators to create, manage and license IPs on the chain, providing a simplified framework to manage the entire life cycle of IP development, supporting features such as source tracking, frictionless licensing and revenue sharing. In the recent technology roadmap, Story said it is working with Stanford FDCI to explore cutting-edge technologies such as performance optimization and on-chain storage to promote the blockchain of intellectual property rights. In token economics, 38.4% is allocated to ecosystems and communities, with an initial incentive of 10%. In terms of circulation, the community has received wide distribution.

Compared with many tokens with strong VC background in this cycle, they have received strong support from a16z as the leading investor in their previous rounds of financing. Although token TGE was affected by a certain market decline in the early stage, its "on-chain Disney" narrative seems to have aroused a lot of market enthusiasm in recent days. After going online on February 13, IP fell to a low of around $1.4, and then rose all the way. As of press time, IP was at $5.20, hitting a high of $9, and its market value reached $1.3 billion, a three-fold increase from its low.

Berachain

Berachain is a high-performance EVM compatible chain built on Proof of Liquidity Consensus (PoL). Its unique consensus mechanism provides users with a closed-loop flywheel from DeFi income to governance, directly rewarding users who contribute to transaction liquidity. This mechanism not only optimizes the DeFi experience, but also allows ordinary users to earn profits by providing liquidity while participating in Berachain's governance. In terms of data, Berachain's TVL also showed a steady upward trend, with accumulating US$3.2 billion in TVL as of press time.

In token economics, 16.8% is allocated to initial core contributors; 34.3% is allocated to investors; 28.9% is allocated to current and future community incentives; and 20% is allocated to ecosystems and R&D. In terms of currency price performance, although the BERA token fell to the $4.7 position due to the previous market trend, with the steady rise of TVL after February 13, the currency price of BERA token has stabilized and recovered with the market Accelerating capital inflows, BERA hit a maximum of US$9.62 before press time, and its market value reached US$900 million, which has nearly doubled the increase from the low point.

Conclusion

From the above analysis, it can be seen that the circulation ratio of each token is relatively small (less than 25%), and most of the initial airdrop portions will be released, resulting in a large selling pressure in the early stage, but then with the token economy Implementation (such as the launch of the pledge function and the TVL driving the token economic flywheel) and other factors, the real value of the token will be reflected through market sentiment. The existence of market makers may also affect the token trend. For example, Wintermute, as a KAITO market makers, has created certain expectations for the market.

In recent months, in the market waving with MEME banner, traders have been frigid about similar VC background projects, resulting in a decline in the currency price after it was launched on the exchange, which in turn led to a setback of user confidence and formed a vicious cycle. And several recent projects seem to be breaking this cycle and seeking to find a more sustainable path to development. These project teams began to consciously emphasize the core concepts of community governance and decentralization; they paid more attention to incentive compatibility in token design, and ensured long-term consistency of interests among all parties through innovative token economics; finally, the project party began to make more progress Focus on in-depth interaction with the community to establish a true trust relationship with users. We also hope to see more projects that can go further.