# Market analysis **The Current Market: Unfair Creation Mechanisms for Meme Coins** The creation process for Meme Coins in the current market is extremely unfair. \ From SHIB and PEPE to Pump.fun, these coins are essentially controlled by teams who spend a small amount of money to acquire a large portion of the tokens, pump their value through marketing, and then encourage others to buy in. \ Only a few Meme Coins successfully make it to listed on Binance, which is considered the ultimate goal, while 99.9% of Meme Coins fail. \ This process results in significant losses for users and their investments. Ever since the end of 2023, we’ve been searching for a truly fair solution. \ We launched one protocol version at the end of 2023 and two or three additional versions at the start of 2024, all of which failed. \ In March 2024, we launched a protocol on the Ethereum mainnet, with liquidity pools added to Uniswap V2. \ However, due to the small size of the initial liquidity pools, MEV bots attacked them, rendering the protocol incapable of automatically adding liquidity and performing buybacks, which led to another failure. In May 2024, we came up with a genuine solution: building our own DEX and limiting the maximum buy-in per transaction. \ This successfully prevented MEV bot attacks while enabling token distribution by block.\ It marked the first time the product framework truly took shape. \ We then expanded the development team and spent several months developing the product, which was live on the Solana mainnet at October 2024. **A decentralized presale platform** In March of 2024, Bome successfully launched on Binance three days after its presale, sparking a wave of interest in Meme Coins. \ This inspired numerous similar Meme Coins, some of which raised tens of millions of dollars during presales (e.g., Water). \ While presales are seemingly fair, offering the same price to all participants, they are fundamentally centralized. \ Many teams raised tens of millions but only added a small portion (e.g., $1–2M) into liquidity pools, severely damaging market trust. Our mechanism, on the other hand, is a decentralized presale platform. Users can enter or exit the presale at any time through trading, because the product is a standard AMM DEX. **From the Exchange Perspective** Currently, there are no decentralized, fair solutions in the market. \ Even the leading exchanges are forced to list these unfair Meme Coins. \ A typical Meme Coin grows its market cap from a few thousand dollars to hundreds of millions, and exchanges like Binance list them when most tokens are still controlled by the issuing team. \ This apparently makes exchanges the exit liquidity for these teams. \ Clearly, this is not the exchanges’ intent. \ The industry needs better and more comprehensive solutions, and this is where we create value. **PoW (Proof of Work) VS PoF (Proof of Buying)** PoW (Proof of Work) is traditionally used to determine token allocation for each block. \ Our mechanism releases tokens generated per block into the liquidity pool, allowing users to purchase them. \ Essentially, this functions like a “proof of buying” mechanism.\ Our mechanism represents the ultimate solution for the industry, comparable to Bitcoin’s issuance model. \ From this point forward, the PoW mechanism becomes unnecessary, reducing energy and resource consumption. **Untapped Potential in the Meme Market** Platforms like Pump.fun currently cater to only about 5% of the market. \ Even so, they generate $400M in fees with just tens of thousands of daily active users. \ Most Pump users, however, only invest small amounts because the risk of loss is too high. \ Many have stopped playing after realizing the chances of winning are too low. \ This highlights a massive untapped market. Our fair mechanism can activate the entire Web3 user base. \ Beyond that, it can also easily attract Web2 users. \ By offering a fair Meme Coin system, even web2 novices can confidently invest-without fearing significant losses. \ The market potential is exponentially greater than Pump’s. **How We Differ from Traditional Meme Coins** Platforms like Pump.fun profit $400M, but they are fundamentally unfair gambling platforms. \ We, on the other hand, target the mid-to-high-end Meme market. \ This is a fair system with far greater potential. \ Our product, which we’ve spent nearly a year perfecting, will disrupt the Meme industry and usher in a new era for Meme Coins. Our mechanism can attract tens or even hundreds of thousands of independent users during the auction period. \ This significantly increases the user base and expands consensus, enhancing the likelihood of creating Meme Coins with $1B or even $10B market caps. \ In contrast, current small-cap Meme Coins often struggle to gain traction. \ Even if they reach a market cap of hundreds of millions, their independent holder addresses typically number only in the hundreds or thousands, severely limiting their growth potential. **Industry Outlook** The introduction of Dutch auctions will reshape the Meme Coin industry. \ A significant number of current Meme Coin users will transition to this fairer model. \ Additionally, more moderate-risk users, who previously avoided Meme Coins, will join in. \ This will drive a rapid and sustained expansion of the Meme Coin market, in both user base and capital. A fair mechanism will first attract users, which will in turn push Meme Coin creators to adapt and join this new Meme Coin paradigm. This new wave will revolutionize the Meme industry and establish a fairer, more sustainable market. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://bestmeme.gitbook.io/bestmeme/market-analysis.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.