『What exactly does InfoFi solve?』

The mainstream saying is that it captures the attention of market users and helps improve the treatment of mid-tier KOLs, etc.

These are actually just superficial aspects; discussing altruism in a financial market without talking about interests is purely nonsense.

A very obvious phenomenon is that the products emerging this round revolve around the following three major aspects:

➣ Trading (various Perp DEXs led by Hyperliquid)

➣ Asset creation and distribution (meme platforms led by Pump fun)

➣ Stablecoin-related (USD1, USDe, etc.)

Personally, I believe the essence of InfoFi is optimizing the last link in the asset distribution path (finding suitable buyers).

Before InfoFi appeared, project parties generally found it difficult to achieve ideal results in marketing and could not effectively track and trace data changes at each stage.

After InfoFi appeared, it not only solved the above problems but also achieved the effect of getting more done with less money, significantly increasing the profit-loss ratio of fund expenditure.

However, you will find that InfoFi relies heavily on market liquidity: good market liquidity -> everyone enjoying high returns -> attracting more natural traffic -> spreading more buying interest.

If market liquidity is poor and everyone finds the return ratio very bad, it will evolve into two extremes:

➣ One is that the wealth effect of the entire market is very poor; although the returns are not high, they are stable, leading to more people participating in the industry than now.

➣ The other is that the costs outweigh the benefits significantly, resulting in fewer and fewer participants.

Whether it is the former or the latter, it indicates that InfoFi's current narrative (capturing attention, solving content distribution incentives) is falsified. Is it capturing attention? It's merely capturing the remaining liquidity buyers in the market.

Moreover, think about it—if market liquidity is poor, where does the funding come from to incentivize users to engage?

There is a saying, "If you don’t know where the other party’s profits come from, then you are the other party’s profits."