The growth curve of a public blockchain can be roughly divided into three stages:
Stage One: By raising the price of the native currency, the goal is to attract market attention, create initial buzz and topics, and thus stimulate the wealth effect. This stage mainly attracts investors' attention through rapid price increases, igniting market interest.
Stage Two: When retail investors fail to get on board in time, the price of the native currency experiences a pullback, and many begin to seek other investable projects or meme coins within the ecosystem.
At this time, the projects that are pushed up are often of the "relationship" type, which are controlled by early investors and insiders, further creating a second round of wealth effect.
Stage Three: As developers within the ecosystem discover that there is a certain profit margin, external developers begin to join in, promoting the development of ecosystem projects through hackathons, funding incentives, and other means.
This stage often focuses on technological innovation and the sustainable development of projects.
The key to sustaining this growth curve lies in the stability of Stage One, meaning the price of the native currency needs to remain high.
If the price of the native currency collapses rapidly, the construction of Stage Two and Stage Three will be interrupted.
Therefore, the major stakeholders of the native currency need to ensure the stability of its value through long-term benefits in Stage Two and Three, rather than relying solely on short-term price increases in Stage One to achieve an exit.