Original author: Pzai, Foresight News
In the crypto market in recent months, emerging projects have emerged one after another. It seems that after the MEME wave, the market has turned to ecological projects, which in turn has led to the recovery of altcoins. In terms of market performance, new projects such as KAITO, IP (Story Protocol), and Berachain have received widespread attention, and their prices have also risen to varying degrees. Can the recovery of these VC coins break the dilemma of the markets lack of successors? This article will analyze from the dimensions of community drive and market trends.
KAITO
KAITO is an InfoFi attention distribution layer based on cryptocurrency, in which Yaps use AI algorithms on Twitter to extract and quantify attention signals, and this advanced model also brings a new standard to crypto projects. Before KAITO issued the coin, many projects (such as Berachain, ANIME, Story Protocol) provided corresponding airdrops for KAITO Yappers, reflecting its strong influence.
On February 20, KAITO AI officially opened token claims. As of press time, 28.75% of the 100 million KAITOs have been claimed. In this airdrop carnival, KOLs accounted for the majority of the benefits. According to Lookonchain monitoring, the well-known crypto KOL Ansem received an airdrop of 215,113 KAITOs and sold them for 76 ETH (about $206,000). The total supply of KAITO is 1 billion, of which 25% is allocated to core contributors; 32.2% is allocated to ecological and network growth; 10% is allocated to initial community and ecosystem claims; 7.5% is allocated to long-term creator incentives; 5% is allocated to liquidity incentives; 8.3% is allocated to early supporters; 10% is allocated to the foundation, and its overall circulation is 241 million at the opening.
The popularity of KAITO also immediately won the favor of Binance, and Binance HODLer airdrop was launched (accounting for 2% of the total). As of press time, the KAITO token was quoted at $1.60, with a market value of $386 million, nearly doubling from the low point.
Story Protocol
Story Protocol is an intellectual property blockchain that allows creators to create, manage and license on-chain IP. It provides a simplified framework to manage the entire life cycle of IP development, supporting functions such as source tracking, frictionless licensing and revenue sharing. In the recent technical roadmap, Story stated that it is working with Stanford FDCI to explore cutting-edge technologies such as performance optimization and on-chain storage to promote the blockchainization of intellectual property. In terms of token economics, 38.4% is allocated to the ecosystem and community, with an initial incentive of 10%. In terms of circulation, the community has received a relatively wide distribution.
Compared with many tokens with strong VC backgrounds in this cycle, it has received strong support from a16z as the lead investor in previous rounds of financing. Although the token was affected by a certain market decline in the early stage of TGE, its Disney on the Chain narrative seems to have aroused a lot of market enthusiasm in recent days. After going online on February 13, IP fell to a minimum of around US$1.4, and then rose all the way. As of press time, IP was reported at US$5.20, reaching a high of US$9, and its market value reached US$1.3 billion, a three-fold increase from the low point.
Berachain
Berachain is a high-performance EVM-compatible chain built on Proof of Liquidity (PoL) consensus. Its unique consensus mechanism provides users with a closed-loop flywheel from DeFi revenue to governance, directly rewarding users who contribute to trading liquidity. This mechanism not only optimizes the DeFi user experience, but also allows ordinary users to earn income by providing liquidity while participating in Berachains governance. In terms of data, Berachains TVL has also shown a steady upward trend, with a cumulative TVL of US$3.2 billion as of press time.
In terms of token economics, 16.8% is allocated to initial core contributors; 34.3% is allocated to investors; 28.9% is allocated for current and future community incentives; and 20% is allocated to the ecosystem and RD. In terms of price performance, although the BERA token dropped to $4.7 due to previous market trends, the steady increase in TVL after February 13 has led to a stable price for the BERA token and accelerated capital inflows as the market rebounded. As of press time, BERA has reached a high of $9.62, with a market value of $900 million, nearly doubling 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 will be released, resulting in a large selling pressure in the early stage, but then with the implementation of the token economy (such as the launch of the staking function, TVL driving the token economy flywheel) and other factors, the true value of the token will be reflected through market sentiment. The existence of market makers may also affect the trend of tokens. For example, Wintermute, as a market maker for KAITO, has created certain expectations for the market.
In recent months, in the market where MEME is waving its flag, traders have shown little interest in similar VC-backed projects, which has led to a drop in the price of coins after listing on exchanges, which in turn has led to a setback in user confidence, forming a kind of vicious cycle. However, several recent projects seem to be breaking this cycle and striving to find a more sustainable development path. These project teams have begun to consciously emphasize the core concepts of community governance and decentralization; pay more attention to incentive compatibility in token design, and ensure the long-term consistency of the interests of all parties through innovative token economics; finally, the project parties have begun to pay more attention to in-depth interaction with the community to establish a real trust relationship with users. We also hope to see more projects go further.
