Notcoin’s Breakthrough: What Can We Learn from Its Success?

KEYTAKEAWAYS

TABLE OF CONTENTS

• KEY TAKEAWAYS
• PRODUCT CANNOT BE COPIED
• EXPERIENCE CAN BE INHERITED
• DATA AND METRICS
• NOTCOIN’S UNIQUE ADVANTAGES
• LESSONS LEARNED FORM THE NOTCOIN’S SUCCESS
• CONCLUSION
• DISCLAIMER
• WRITER’S INTRO

CONTENT

Recently, Notcoin experienced an explosive price surge, growing by 110% in just one week. What is the secret behind this phenomenal rise? Let CoinRank guide you through the details!

PRODUCT CANNOT BE COPIED

1. User Base Cannot Be Copied

• Notcoin directly utilizes Telegram’s user base, focusing on deeply exploring user value.
• Telegram can increase the cost for cheaters, likely deterring bot farms at the time.
• Notcoin’s design caters to those unfamiliar with web3, with Ton’s groundwork simplifying onboarding.
• Copycat projects on Ton would need to buy old users again, which is unlikely given the saturated market and potential for funds to be drained without a well-designed entry threshold.

2. Operational Flywheel Cannot Be Copied

• Notcoin is closely tied with Ton, bringing traffic to Ton, which in turn reallocates operational resources to Notcoin.
• This symbiotic relationship exemplifies the pattern seen with Solana this year: Meme tokens gain niche dominance.
• Ton has no room left for a new Meme niche, and other ecosystems lack sufficiently differentiated users.

3. Market Environment Cannot Be Copied

• Iconic projects are irreplicable due to market conditions.
• Web3 projects are heavily reliant on network scale economies, facing a unified large market without significant segmentation.
• Copycats directly compete with iconic projects but can’t win without the risk of mutual destruction.
• In the latter stages of a bull market, there’s no time for copycats to develop like Notcoin did over six months.

EXPERIENCE CAN BE INHERITED

1. Target Audience and Product Design

• With 900 million monthly active Telegram users, Notcoin achieved 35 million interactions in six months, indicating a large remaining market.
• New projects should differentiate to onboard other users, considering onboarding speed and product coverage variation.
• The fastest-growing sectors are streaming media, short videos, and games, with short videos being particularly recommended.
• Tokenomics can drive a decentralized attack on mainstream video content, scaling first and governing later.
• Recommender systems are crucial.

2. Coordination of Multiple Interests and Resource Reuse

• Notcoin’s profitability is long-term, requiring airdrops to activate enough users, listing on major exchanges for liquidity, and making market makers and speculators see operational value.
• Traditional market structure: the leader takes 60%, the second 20%, and the rest is divided among others.
• Low-threshold methods like Notcoin’s don’t have high per-user costs but converting regular users to paying ones requires additional screening and conversion.

DATA AND METRICS

1. Comparable Projects

• Pepe: $6.1 billion FDV, 230,000 holders
• WIF: $3.3 billion FDV, 140,000 holders
• Slerf: 61,000 holders, $155 million FDV
• Notcoin: Over six months, $1.2 billion valuation, 35 million interactive accounts, 1.59 million holders

2. Requirements for Second Place

• To achieve a $400 million valuation, at least 20 million interactive accounts and 900,000 holders are needed.

NOTCOIN’S UNIQUE ADVANTAGES

1. Real Users

• Based on Telegram user community, high registration cost due to phone and email binding, and web2 anti-fraud mechanisms prevent large-scale bot creation.
• Meme coin airdrop mechanisms make it difficult for bot farms to exploit, leading to high user authenticity, attracting exchange participation.

2. Value-Backing Mechanism

• Similar to Pi network but with real value; Notcoin relies on Ton’s account and wallet systems.
• Ton, built on Telegram, offers a smart contract-enabled, peer-to-peer encrypted payment system, with ongoing development in mini apps and payment systems to further tap into the 800 million user base.
• Even if Notcoin doesn’t generate profit, building user habits around crypto assets yields valuable data for traditional financial markets.

3. Operational Flexibility

• Low operational costs, sharing activities with Ton’s ecosystem, simple development, and the meme token nature lower resource barriers.
• Notcoin is part of Telegram’s user conversion strategy, reducing perceived costs and supporting iterative trials.

4. Strategic Execution

• Higher costs and user expectations associated with Telegram, combined with time-for-token strategies, deter large-scale bot farming.
• Without large-scale farmers, market makers can better control liquidity, and exchanges are more willing to provide liquidity, facilitating negotiations with entities like DWF.

5. Multiple Revenue Streams

• Investment in games, content, and storytelling drives monetization.

LESSONS LEARNED FORM THE NOTCOIN’S SUCCESS

1. Cost Reduction:

• Costs include development, operation, market-making, and time. The latter three are significant.
• Operational costs should leverage company resources effectively and target user base accurately to lower entry barriers.

2. Efficient Resource Use:

• Utilize Telegram’s account system for airdrops to ensure broad and equitable token distribution, reducing market-making costs.
• Continuously monitor and analyze data for user growth and engagement.

3. Revenue Maximization:

• Effective storytelling to command higher prices for traffic.

CONCLUSION

1. Operating a single project is costly.
2. For zero-cost projects, controlling bot farms is crucial; they are vulnerable to targeted attacks.
3. Maintain data transparency and compelling storytelling.
4. The game’s essence is distribution: exchanges need volume, blockchain infrastructure needs active data, communities need traffic, and retail investors need hope.