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Letsbonk.fun founder: PVP for meme coins is terrible! Only by gathering liquidity can we break through the market capitalization ceiling.
Analyzing how PVP trading can disperse meme coin liquidity and proposing feasible strategies for capital aggregation. (Background: COINBASE launches Solana on the Pump.fun platform, LetsBonk are all Bots, meme coins get played for suckers in the first second) (Additional background: Be an adult in the crypto world: 18 self-responsibility rules) Meme coins create big pump legends through community liquidity, and PVP (earning others' money) among investors is the standard for on-chain trading, but currently, it is said that there are aspects of PVP that have 'drawbacks' to be solved. Recently, the Letsbonk.fun platform, striving for market share, founder Tom stated: "Hey, I just want to say that suppressing tokens (runner) that can go up in market capitalization is really bad. We are thinking about ways to improve this situation. If there are any tokens rising, join it and push it higher together; the results will be more fruitful. All liquidity concentrated in one place, and all attention focused on one point, that's how you hit the ceiling. Of course, PVP might be able to make 2 million dollars or something like that, but in fact, it's not difficult to add another 10 million to a mid-market cap project. Liquidity is already rotational and staged; with our introduction of non-trench funds on Bonk Fun, it is slowly improving. No need to say more, we will not support PVP behavior against a big Runner." Tom means that the large number of speculators switching back and forth between different tokens in 'PVP' operations will continuously dilute liquidity, keeping most meme coins' market capitalization at millions of dollars, making it difficult to break through the ten million, or even billion level threshold. 'PVP' makes it hard for funds to aggregate. The so-called PVP is when traders pursue short-term profits, quickly switching positions among various meme coins, using tools like PVP.Trade and Bullpen for high-frequency arbitrage. This trend in on-chain meme coin trading fragments limited capital, leading to insufficient order book depth. When buy orders cannot continuously relay, price momentum quickly fizzles out, investor confidence declines, forming a vicious cycle. Hypothetical: How to solve PVP? Tom's suggestions sound somewhat 'impractical', how to actually solve PVP? Because quick switching is the nature of meme traders. If we hypothesize solutions for PVP, there might be several approaches: Algorithmic market making: Through market makers, placing buy and sell orders at key price levels to reduce slippage and thicken depth. Liquidity walls and concentrated liquidity: Trading platforms pre-set a large number of open orders in key price areas, coupled with Uniswap V3 models, locking funds in the most active ranges to increase capital efficiency. Supporting incentives and transparent supply: Using liquidity mining to increase TVL while establishing clear unlocking and repurchase mechanisms, allowing investors to have expectations for long-term value, but this method cannot target 'randomly issued' personal meme coins. Related reports: Musk's AI girlfriend meme coin Ani's market cap breaks 50 million dollars hitting a new high, but dancing in black stockings is too erotic, leading to delisting. COINBASE launches Solana on the Pump.fun platform, LetsBonk are all Bots, meme coins get played for suckers in the first second. <Letsbonk.fun founder: PVP for meme coins is terrible! Gathering liquidity is the only way to break through the market cap ceiling> This article was first published in BlockTempo, the most influential blockchain news media.