Solana

Believe - an app that made $27m in fees in <30 days.

It's an app on Solana that allows users on X to create a coin by tagging their bot. The primary use case was to build 'startups' and not memecoins.

Alex

Believe - an app that made $27m in fees in <30 days.

It's an app on Solana that allows users on X to create a coin by tagging their bot. The primary use case was to build 'startups' and not memecoins.
https://x.com/Ax19930/status/1924552296202944803

Do I write a thread about what it did well and wrong?

my sense is that it did/does a very good job making money, as any launchpad that catches a trend does

but it's the same hot money as any other memecoin trade and hasn't sustainably brought it anyone new to the ecosystem, while not really being a new kind of "experiment" once you get past a thin layer of marketing

any disagreements?

Personally I'm not a fan of the execution, the idea yes.

I wrote a thread about what went wrong in my opinion

app developer /spotlight | MediaFi & Attention Markets

Personally I'm not a fan of the execution, the idea yes.

I wrote a thread about what went wrong in my opinion
https://warpcast.com/elliotsol/0x4b3542fb

yea i don't think 2% fee rises to the level of extractive, when people are playing for 10-100x (they know their customer)

putting aside that it's ultimately just memecoin trading, some elements of the execution are surprisingly bad

after some dms have a bit more clarity

if you're a @believeapp  creator and you're reading this, sorry the money is not coming

why have creators on average lost so much value:

1. the fees from the pool are being held in LP tokens:
this means that the price and composition of

self-inflicted impermanent loss

can't make this shit up

michael (mjc716 on fc)

yea i don't think 2% fee rises to the level of extractive, when people are playing for 10-100x (they know their customer)

putting aside that it's ultimately just memecoin trading, some elements of the execution are surprisingly bad
https://x.com/mjayceee/status/1923421202908942790

This fee was set by Believe and funded by the money raised by the bonding curve funded by early users

So it's not people LP'ing that determined this fee amount, it's the app and the pool is funded by other users

speaking from a potential LP perspective (even though no sane person is LPing in these pools), the fee required to justify providing liquidity to these highly volatile tokens in order to counteract impermanent loss is probably even higher than 2%

I'd argue 2% per trade is extremely extractive. Let's not bring back the 'tax farm' meta.