What are your thoughts on the current market-making landscape for memecoins, and how does Peanut Trade’s approach stand out?
The market-making landscape for memecoins has experienced a noticeable slowdown, particularly on the Solana network, possibly due to seasonal factors or the exhaustion following a surge in activity. Many projects have been launched, but there’s insufficient liquidity to support them all, and the trend seems to be waning.
In response, the market has shifted from the presale model to the Fair Launch and Community Takeover (CTO) models. Presale coins, once popular, have lost their appeal. Peanut Trade differentiates itself in this evolving market by quickly adapting to emerging trends. For example, when the focus shifted towards Tron, we integrated Tron into our services within days, securing our first clients soon after. This ability to rapidly adapt, combined with our team’s expertise in identifying trends, allows us to stay ahead in the market.
Our approach is deeply rooted in thorough research and close collaboration with project teams, enabling us to understand market dynamics better and add value where others might not. Unlike many larger market makers who prioritise financial gain and often remain detached from the projects they serve, we work closely with the project teams, focusing on what benefits the project and its community.
What led to the decision to add TRON network support for Peanut Trade’s market-making services?
We observed a significant increase in activity on the TRON network, which prompted further investigation. Our regular clients began inquiring about integrating TRON, and once we saw this alignment, we decided to proceed with the integration. Within a few days, we mobilised our resources, completed the integration, and were ready to offer market-making services on TRON.
TRON’s ecosystem differs from Solana’s, notably due to its large centralised exchanges. At a certain volume, projects on TRON can get listed on these exchanges, a feature not available in other ecosystems. This unique aspect could positively influence the trend’s development within the TRON ecosystem.
What are your thoughts on the current crypto market conditions, and what will it take to revive them?
There is a distinct difference between the meme and DeFi markets. The meme market is more accessible and understandable to everyday people, but it is often a zero-sum game where most participants lose money. It does not create additional value. On the other hand, the DeFi market, while slower to erode value, has a fundamental technological basis and attracts a slightly different audience, mainly web3 natives. This results in a higher-quality community, which could contribute to the longevity of projects. DeFi projects tend to last longer, which could help revive the market. While there is growing disillusionment with the meme market, DeFi evokes positive memories for many, reminiscent of the healthier, wealth-generating market of 2020-2021.
From a macroeconomic perspective, as we near the end of the holiday season, many are looking forward to the traditionally active fall period. Additionally, there are expectations of an interest rate cut in the US, which could bring more liquidity into the crypto market. This potential liquidity injection could alleviate the widespread complaints about the lack of liquidity across all market segments.
What is your perspective on the cryptocurrency policies of the current presidential candidates, and what impact might they have on the industry?
Among the Republican candidates, the sentiment remains bullish for crypto, with a widespread belief that a Republican victory would benefit the industry. However, even if a Republican wins, it would still require significant effort to reverse the trend of crypto startups leaving the US and to attract them back.
On the Democratic side, the outlook is less favourable. There has been no clear stance on cryptocurrency, and indirect signs, such as rumours of Gary Gensler’s potential appointment as Secretary of the Treasury, have fuelled negative sentiment. If a Democratic candidate wins, it is likely that the outflow of crypto startups from the US would continue as they seek friendlier jurisdictions.
In either scenario, the task ahead is challenging. For crypto companies to thrive in the US, substantial policy changes are necessary, particularly under a Republican administration. However, even with these changes, the road to recovery will require significant effort.