A cruel truth: Many MemeFi projects have designed a sophisticated 'trap' game from day one, turning your future earnings into a hook that locks up your principal.
How does this 'Ponzi flywheel' operate?
👇 (Thread)
1/
The first step in the game is to numb you with 'zero-cost participation'.
You frantically click the mouse, brush transactions, paying real money in Gas fees, thinking you are using your 'effort' to exchange for future wealth.
The platform distributes a bunch of non-tradable 'points' to you based on your contributions.
All of this makes you feel good, as if the key to wealth is right in front of you...
But this is just bait; the real trap lies ahead.
2/
Finally waiting for TGE (Token Generation Event), your points can be exchanged for tokens!
But you'll soon find that these tokens are locked.
Want to unlock? Sure.
You must stake them, or, more harshly, take your real money (like USDC) and pair it with them to provide trading depth for this new coin.
Do you understand? The project team has kidnapped your current assets with your future 'airdrop'. 🤯
3/
This gameplay is what we call 'risk transfer'.
To cash in on a 'void expectation', you have to become the earliest protector and market maker of the tokens.
The project side contributed nothing, using your assets to create early price support and liquidity pools for their tokens.
You think you are the hunter, but from the start, you were the captive prey.
So, how is this system destined to collapse?
4/
The answer is: the built-in 'death spiral'. 🌀
The early high APR is just an illusion of high inflation printing.
Once the influx of new external funds cannot keep up with the issuance of tokens, the price will start to fall.
Price drops -> APR decreases -> Early LP (mercenaries) withdraw -> Depth depletion, price crash -> No one comes to trade or mine anymore -> Game over.
Once this negative feedback loop starts, it cannot be reversed.
5/
In this pre-set betrayal prisoner’s dilemma, there are four types of players sitting:
Project team (the house): Legally cashing out at the peak.
Volume miners (early players): Unlocking and dumping at the first opportunity, never holding on.
LP Mercenaries: They come smelling high interest and leave as interest rates fall, acting as the fuse that ignites the spiral.
Late-stage Speculators (You?): Attracted by the 'hundredfold coin' story, ultimately taking on everyone's sell orders.
This is a clear harvesting chain.
6/
The most terrifying thing is that these types of projects create almost no real value.
Trading is not for demand, but for mining.
Providing LP is not about being bullish on the asset, but for rewards.
Its price does not reflect any fundamentals, only 'market attention'.
Once attention shifts, it becomes a castle built on quicksand, instantly going to zero.
This is the brutal essence of financial games under the MemeFi narrative.
7/
When will the final bell ring?
Remember these three signals of a crash:
Unlocking daily sell pressure: A massive early airdrop token unlock is the irreversible first tsunami.
Dramatic decrease in mining returns: When APR is no longer sexy, 'mercenary' capital will flee en masse.
Narrative collapse: When the market realizes growth has peaked, consensus will instantly shatter, and everyone will rush to flee.
The slowest runner will pay everyone's bills.
8/
Summary: Projects like MemeMax are a wealth transfer game carefully designed around 'future expectations', not value creation.
It exploits human greed and FOMO, cleverly transferring risk to the most profit-hungry individuals.
Before participating, ask yourself a question: Where do I stand in this game? If I'm not the earliest, I'm likely just someone else's fuel. 🔥
#Web3 #DeFi #MemeFi #Airdrop #Crypto