Internet capital markets SUCK?

The Spaces focused on the evolving dynamics of Internet Capital Markets (ICM) and their potential impact on the broader crypto ecosystem. The speakers explored the concept of ICM, considering it as a trend that tokenizes various assets, particularly highlighting the differentiation between attention tokens and utility tokens. Participants discussed the challenges faced by founders in introducing tokens, the influence of meme coins, and the interplay between attention and utility in shaping token values. They also touched on the behavior of traders, the role of influencers, and the dynamics of launchpads. The conversation highlighted a tension between immediate trading incentives and long-term value creation, alongside a discussion on the future trajectory of crypto with more utility-driven projects.

Discussion on Internet Capital Markets (ICM)

Overview

The session opened with a reflection on the state of Internet Capital Markets (ICM). There was a consensus that the ecosystem had significantly evolved since the last discussion, primarily marked by the fluctuation in coin prices and the influence of external factors such as tariffs.

Key Points and Perspectives

Definition and Understanding of ICM

• Speaker 1 (likely named Matt but not explicitly confirmed) initiated the discussion by questioning what ICM means, equating it to previous cycles of the AI meta and crypto as a whole.
• Speaker 2 emphasized the trend of tokenizing everything, particularly companies from Web 2 attempting to integrate with Web 3.

Challenges and Observations

• Speaker 2 highlighted the issue of the majority of tokens being attention tokens rather than utility tokens, with many lacking real-world value even when utility is present.
• Speaker 2 noted the first wave of ICM projects saw developers and founders not realizing their coins were primarily attention-based, leading to temporary hype without sustained engagement.

Trends in Token Valuation

Reality of Trading Attention Tokens

• Speaker 2 discussed the bifurcation between attention tokens and utility tokens, highlighting that most fail to provide significant value.
• Speaker 1 and 2 engaged in a juxtaposition of how meme coins fit into this narrative and the possible future trajectory of valuation for projects across ICM.

Specific Case Studies

The Launch of Dupe

• Speaker 1 and 2 debated the significance of Dupe, a furniture analysis tool accidentally launching a coin in the ecosystem, and how influencers substantially impact coin valuations.
• Speaker 1 pointed out the phenomenon where influencers like those on Twitter could single-handedly influence project valuations through personal endorsements.

Discussion with Founders

Perspectives from Founders on Belief App

• Imran highlighted the cultural divide between Web 2 founders and Web 3 investors, stressing the need for these founders to adapt to crypto-like dynamics including building community and cult-like followings.
• Alex from Creator Buddy and Imran shared insights on how the Belief app had catalyzed growth for projects by leveraging user sentiment and community engagement.

Challenges and Opportunities

Future and Sustainability of Launchpads

• Discussion on whether more launchpads present opportunities or dilute the market interest, with consensus leaning towards the latter.
• Imran and others emphasized the need for Launch Coin itself to function effectively, where increased correlation between its success and wider app ecosystem functionality was noted.

Accomplishments and Critiques

Critique of ICM as a Meta

• Nikita provided insights into his role and his vision for ICM as more than a meta, rather a sustainable financial vehicle to finance projects.
• Participants expressed concerns that while tokens are inherently traded based on attention, discerning utility and true project potential requires a longer horizon and faith in founders' execution.

Concluding Remarks

Reflections on Market Dynamics

• Participants acknowledged the excitement of current opportunities in crypto despite inherent challenges such as attention-based valuations and short-term trading horizons.
• Speaker 1 iterated the unique position crypto finds itself in with constant innovation and abundant optional activities for traders and investors.

This session was a deep dive into understanding the current landscape of Internet Capital Markets, focusing on token dynamics, influences from social narratives, and the cultural shift required from both founders and investors.