The guest list for this episode of Twitter Space organized by ABCDE Labs includes Jeff from Merlin Chain, Ryan Chow from Solv Protocol, Charlie Hu from Bitlayer, and Stan from B2 Network. The content of the article does not represent the views of Wu Shuo, and can be listened to on Xiaoyuzhoufm.com and Youtube.
BMAN: Merlin’s TGE was over a week ago, and I imagine that Jeff has been through a lot in the past 10 days. Do you have any thoughts to share with us?
Jeff: The first thing I think may be the complexity of the bridge in and out of our assets. We didn’t prepare enough in advance, and now we have BTC, BRC-20, NFT, ETH, USDT, and Manta, among many other assets. So, the complexity of the bridge in and out process is very high. I’ve looked at the on-chain data, and in the past month, about 78,000 BTC have been bridged in, and over 70,000 BTC have been bridged out, so the overall liquidity is very good. But with assets like NFT, runes, Manta, and Tron, we’ve taken on too much, resulting in a decrease in user experience.
The second feeling is about the advantages and disadvantages of fair launches. For example, Merlin’s token had a fair launch, where all tokens were airdropped to users in the first six months, leading to a large market pressure when the market declined. So, I feel that being too aggressive with a product can lead to consequences, and fair launches can bring both benefits and drawbacks.
BMAN: There are dozens of Layer 2 solutions for Bitcoin. How can we differentiate ourselves from these and stand out?
CharlieHu: Looking back to September last year, many people were spreading FUD about Ordinals, but I believe that when everyone is spreading FUD, it’s a sign of a bottom. The Bitcoin Layer 2 is currently in an interesting process, and I think that real projects that can drive the industry are few. So, differentiation in technology, product innovation, and cultural outreach is important.
Stan: The demand for Bitcoin is high, and the infrastructure of Bitcoin has been very outdated. B2 Network is working on solving some of the pain points in the Bitcoin ecosystem and providing a modular architecture.
This concludes the translation of the news article.I’ve made some adjustments, and now the coin is basically dead. I couldn’t sell it on the first level, and I won’t be able to sell it on the second level either. Since the coin has been listed on an exchange, I’ll bridge it to the exchange. I think the opportunity lies in the fact that BRC-20 has been introduced, and Runes will follow the same path. What does this mean? It means that there will definitely be some head coins, which will be traded at a very high price, and then they will be listed on centralized exchanges. Many coins, like ORDI and SATS, will end up in centralized exchanges and become memes for trading. The user groups on the chain and those on the exchanges do not overlap much, so there will be a complete turnover of users, and the coin will eventually become an exchange coin. Many large holders of ORDI, who previously staked their coins with us, will not actually use Unisat, as they completed the process of buying the coin on the exchange. However, once the top coins are listed on centralized exchanges, the remaining coins will suffer from a noticeable liquidity depletion, making it very difficult to trade the middle and tail coins on the first level. The entire trading efficiency, including the asset distribution efficiency, is poor, leading to high early costs. For instance, the cost of issuing BRC-20 is already in the tens of millions of dollars. The liquidity in the secondary market has to be very good to make up for these costs and allow the coin to continue rising. Besides ORDI and SATS, many other communities have encountered significant problems, and liquidity is very poor. The opportunities on the second level can be found in projects like Solana’s MEME and Base’s MEME, which have very smooth asset issuance processes. Moreover, creating a pool on the DEX is already very efficient, and the price can be quickly driven up. Of course, it may also drop to zero very quickly, but it can also rise very quickly. This is why many meme coin creators would rather not bear the high costs of issuing the coin on the first level, and are turning to the second level. However, everything happening today is still in its early stages, and we are currently working on a Runes incubator, which will provide support for the development of these projects. If Runes follows the same path as BRC-20 in the end, and if we, as Layer2, do not offer help or empower them, it would be a shame. Lastly, Arthur Hayes believes that Bitcoin will fluctuate between $60,000 and $70,000 until August.
