The Solana Token Launchpad Coming for Venture Capital | Ryan Connor

Believe: Solana's Revolutionary Token Launchpad

In the ever-evolving world of cryptocurrency and blockchain technology, Solana continues to push boundaries and foster innovation. The latest development in the Solana ecosystem is Believe, a groundbreaking token launchpad that's challenging traditional venture capital models and reshaping how startups raise funds. This new platform is making waves in the crypto community, offering a unique approach to capital formation and startup funding.

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What is Believe?

Believe is a new Solana-based app that serves as a meme coin launchpad, allowing anyone to launch a token associated with a startup or app idea. What sets Believe apart from other meme coin platforms is its curation process. The Believe team filters through the tokens launched on the platform and features those attached to interesting startup or app ideas on their user-friendly iPhone app.

Ryan Connor, Head of Research at Blockworks Research, explains the appeal of Believe:

"I firmly believe that Believe is in the latter category. I do envision a world where this could work out. And the reason why it's like just another or not just another meme coin launchpad is I think kind of two reasons. The first is that there is a clear distinction in terms of the go to market strategy here that makes a lot of sense. And the go to market is to target a supply side. That is essentially indie app builders and growth hackers who historically either under monetize or can't monetize. And to be able to do that via tokens is an interesting unlock for that group of builders."

The Curation Advantage

One of Believe's key strengths is its curation layer, which sets it apart from other launchpads like PumpFun. While PumpFun has been extraordinarily successful, some investors are deterred by the lack of curation and the need to play what Connor calls the "trench game." Believe offers a more curated experience, appealing to a segment of the market looking for higher-quality projects.

Connor elaborates: "I think that there is a sliver of the market that's looking for a more curated experience. So, if you combine indie devs on the supply side plus a curated experience for users, I think that you potentially have something here."

Targeting Underserved Developers

Believe's innovative approach targets a specific group of developers who have been traditionally underserved by venture capital: indie app developers. These are individuals or small teams who create multiple apps per year, hoping to generate income or potentially achieve a high-value exit.

Connor provides some insightful statistics: "The vast majority of indie app devs on a per-app basis make less than 1,000 bucks. The top decile earners will make somewhere 150,000, 180,000 on a per-app basis. The top percentile will do 7,000,000 in revenue. That's top percentile."

This data highlights the challenges faced by indie developers in monetizing their work and attracting traditional venture funding. Believe offers these developers a new avenue to raise capital and potentially monetize their ideas more effectively.

The Memeification of Capital Markets

Believe represents a broader trend in the cryptocurrency space: the memeification of capital markets. This phenomenon involves the rapid creation and trading of tokens based on ideas, often with little underlying value beyond their meme status. However, Believe aims to add a layer of legitimacy to this process by focusing on real startup ideas and app concepts.

The platform's approach aligns with the "Vibe coding" era, where tools like cursor allow developers to create new apps in minutes. This speed of development, combined with the instant capital formation offered by meme coins, creates a unique environment for testing and funding ideas.

Challenges and Ethical Considerations

While Believe presents an exciting opportunity for indie developers and investors, it's not without its challenges and ethical considerations. One of the main concerns is the lack of actual equity rights for token holders. The platform's FAQ states that if issuers are not promising returns, ownership, or financial rights, and the coin is clearly meant for fun, they're likely operating in a safe zone legally.

This approach raises questions about the ethics of encouraging retail investors to put money into these tokens without providing any tangible rights or returns. However, Connor argues that this is a result of the current regulatory environment:

"Today, because of the middle ground that we're in, in terms of regulatory clarity, we see it on the horizon. Nothing's been passed yet. There's been signaling from lawmakers and regulators and, frankly, the president, but we don't have that regulatory clarity yet. It puts token issuers in this messy middle where you don't know what to do."

Comparison to Traditional Crowdfunding

Some observers have drawn parallels between Believe and traditional crowdfunding platforms like Kickstarter. Both allow individuals to fund projects or ideas they find interesting, often in exchange for some form of reward. However, Believe's use of meme coins and its focus on potential future app development sets it apart from traditional crowdfunding models.

Connor argues that the novelty of Believe's approach is less important than its execution: "I don't think it matters that things are novel, and I think the best example of that is pump fund. Pump fund did nothing new. All they did was observe that there was incredibly high latent demand over a 10-year period in crypto for launching arbitrary assets, calling them funny names and trading them and hoping to get the next thousand X."

The Anti-Sniping Mechanism

One interesting feature of Believe is its partnership with Mediora to implement an anti-bot mechanism. This system uses a bonding curve where fees are initially higher until the token reaches a certain market cap, after which the fees drop. This mechanism is designed to discourage the immediate sniping of tokens upon launch, a common problem on platforms like PumpFun.

While this feature hasn't received much attention, it could potentially address one of the main criticisms of meme coin trading: that tokens are often bought up immediately after launch, leaving regular users at a disadvantage. However, as Connor points out, the effectiveness of this mechanism remains to be seen, especially for high-profile launches.

The Future of Consumer Crypto

Believe's emergence and rapid adoption highlight the growing trend of consumer-focused cryptocurrency applications. These apps tend to be highly financial in nature, often blurring the lines between investing, gambling, and social media.

Connor observes: "I think consumer crypto is here objectively. For anyone who's willing to see it, it's here. And it is a very specific thing. It's highly financial. I don't think that it's decentralized Instagram. I don't think that it's decentralized Twitter. I think that it's fun gambling adjacent consumer apps that have some unique unlock."

Solana's Role in the Believe Ecosystem

It's worth noting that Believe's choice of Solana as its underlying blockchain is significant. Solana's high-speed, low-cost transactions make it an ideal platform for the rapid trading and launching of tokens that Believe facilitates. This aligns with Solana's broader mission to support innovative, user-friendly applications in the cryptocurrency space.

The Impact on Traditional Venture Capital

While Believe isn't directly competing with traditional venture capital for the same projects, it does represent a new model of funding that could disrupt certain segments of the startup ecosystem. By providing a way for indie developers and small startups to raise funds and gauge market interest quickly, Believe could potentially fill a gap that traditional VC has overlooked.

However, it's important to note that the types of projects funded through Believe are likely to be different from those typically backed by venture capital. These are often smaller, more experimental ideas that might not have the potential for the massive returns that VCs typically seek.

Regulatory Considerations

The regulatory landscape for platforms like Believe remains uncertain. While the team behind Believe has taken steps to distance themselves from language that might suggest their tokens are securities, the legal status of these meme coins is still ambiguous.

Connor points out the challenges this creates for token issuers: "It puts token issuers in this messy middle where you don't know what to do. You need to remain compliant. You know launching a token will be beneficial for you, your product, and the users, and the owners. The users of that token, you want to give it utility, but you can't. You actually can't."

This regulatory uncertainty could potentially limit Believe's growth or force changes to its model in the future. However, it also presents an opportunity for the platform to help shape future regulations by demonstrating the potential benefits of this new funding model.

The User Experience

One of Believe's strengths is its user-friendly interface. The app's design has been compared to popular financial apps like Robinhood, making it accessible to a wide range of users, including those who might be new to cryptocurrency trading.

This focus on user experience is crucial for the platform's success. By making the process of investing in startup ideas as simple as possible, Believe can attract a broader user base and potentially bring new participants into the Solana ecosystem.

Potential Limitations and Challenges

While Believe has generated significant excitement, it's not without potential limitations. One concern is the finite nature of the platform. Unlike social media apps with infinite scrolls, Believe's curated approach means there's a limit to the number of projects users can invest in.

This could potentially lead to user fatigue or a loss of interest once the initial excitement wears off. However, Connor argues that this limitation might actually be beneficial: "You shouldn't be investing every day. It doesn't make sense in these hyper niche consumer markets. It doesn't need that type of engagement."

The Role of Community and Social Dynamics

An interesting aspect of Believe is how it leverages community dynamics and social proof. By featuring certain projects and allowing users to see which tokens are gaining traction, Believe creates a social layer to the investment process. This can lead to network effects, where popular projects become even more popular, potentially amplifying both the rewards and risks for investors.

Implications for the Broader Crypto Ecosystem

Believe's success could have far-reaching implications for the broader cryptocurrency ecosystem. If it proves to be a sustainable model for funding early-stage ideas, it could inspire similar platforms on other blockchains or lead to new hybrid models of fundraising that combine elements of traditional VC, crowdfunding, and token sales.

Moreover, Believe's focus on real-world applications and startups could help bridge the gap between the often speculative world of cryptocurrency and tangible business outcomes. This could potentially improve the perception of cryptocurrency projects among mainstream investors and regulators.

Education and Responsible Trading

With the rise of platforms like Believe, there's an increasing need for education around responsible trading and investment in the cryptocurrency space. The ease of launching and trading tokens on Believe could potentially lead to risky behavior, especially among inexperienced investors.

The Believe team seems aware of this responsibility, with Connor noting: "I think that one of the cool things about the curation from the believe team is they kind of give you best practices as a token issuer and what to expect, which no platform has done today."

The Future of Believe

As Believe continues to evolve, several key questions remain. How will the platform maintain quality as it scales? Will it be able to consistently attract high-quality projects? And perhaps most importantly, will it be able to navigate the complex regulatory landscape while still providing value to both token issuers and investors?

Despite these challenges, the early success of Believe suggests that there's significant demand for new models of startup funding and investment. As Connor puts it: "Consumer crypto is here objectively. For anyone who's willing to see it, it's here."

Conclusion: A New Frontier in Crypto Funding

Believe represents a fascinating experiment at the intersection of meme coins, startup funding, and community-driven investment. While it's too early to say whether it will revolutionize venture capital or become a lasting fixture in the crypto ecosystem, it's clear that Believe is pushing boundaries and challenging traditional models.

For the Solana ecosystem, Believe is another example of the innovative applications being built on the platform. It showcases Solana's ability to support high-speed, low-cost transactions that enable new models of financial interaction.

As the crypto space continues to evolve, platforms like Believe will likely play a crucial role in shaping the future of funding, investment, and community engagement. Whether you're an indie developer looking for a new way to fund your idea, an investor seeking the next big thing, or simply a crypto enthusiast watching the space evolve, Believe is certainly a platform to watch.

Facts + Figures

• Believe is a new Solana-based meme coin launchpad that allows anyone to launch a token associated with a startup or app idea.

• Of the top 25 new Solana token launches in a recent week, 14 came from Believe, while only 7 came from PumpFun.

• Believe saw $724 million in 24-hour trading volume, according to Believe Screener.

• The vast majority of indie app developers make less than $1,000 per app, with top decile earners making $150,000-$180,000, and the top percentile reaching $7 million in revenue.

• Believe targets indie app developers and growth hackers who historically under-monetize or can't monetize their projects.

• Believe has a curation process where the team filters through launched tokens and features interesting startup or app ideas on their iPhone app.

• Believe has a partnership with Mediora to implement an anti-bot mechanism using a bonding curve with initially higher fees.

• There are only 15 million monthly active users on Phantom (a Solana wallet), compared to 40 million monthly active users for BeReal.

• PumpFun, another popular meme coin platform, has generated cumulative $700 million since launch.

• Believe's FAQ states that if issuers are not promising returns, ownership, or financial rights, and the coin is clearly meant for fun, they're likely operating in a safe legal zone.

Questions Answered

What is Believe?

Believe is a new Solana-based meme coin launchpad that allows anyone to launch a token associated with a startup or app idea. It differs from other platforms by offering a curation process where the Believe team filters through launched tokens and features interesting startup or app ideas on their user-friendly iPhone app. This curation provides a more refined experience for users looking to invest in potential startups through meme coins.

How does Believe differ from traditional venture capital?

Believe targets a different market segment than traditional venture capital, focusing on indie app developers and growth hackers who typically struggle to monetize their projects or attract VC funding. Unlike traditional VC, Believe allows these developers to raise funds through meme coins, providing a faster and more accessible way to gauge market interest and potentially monetize their ideas. However, it's important to note that Believe doesn't offer actual equity rights to token holders, which is a significant difference from traditional VC investments.

Who are the main users of Believe?

The main users of Believe are split into two groups: on the supply side, it's indie app developers and growth hackers who are looking for ways to monetize their projects or ideas. On the demand side, it's retail investors and crypto enthusiasts who are interested in getting venture-like upside in small-cap projects. These users are often drawn to the platform for its curated selection of projects and the potential for high returns, although it's important to note the high risks involved in meme coin investments.

What are the potential risks of using Believe?

There are several risks associated with using Believe. For investors, the main risk is the highly speculative nature of meme coins, which can be extremely volatile and often trend towards zero value over time. There's also a lack of actual equity rights or guaranteed returns for token holders. For project creators, there are potential regulatory risks, as the legal status of these tokens remains ambiguous. Additionally, the platform's success could attract bad actors trying to exploit the system, which could harm legitimate projects and investors.

How does Believe's anti-sniping mechanism work?

Believe has partnered with Mediora to implement an anti-bot mechanism that uses a bonding curve where fees are initially higher until the token reaches a certain market cap, after which the fees drop. This mechanism is designed to discourage the immediate sniping of tokens upon launch, a common problem on other meme coin platforms. The goal is to create a more level playing field for regular users who might otherwise be disadvantaged by bots or large investors who can quickly buy up new tokens as soon as they launch.

What impact could Believe have on the broader crypto ecosystem?

Believe could potentially have significant impacts on the broader crypto ecosystem. If successful, it could inspire similar platforms on other blockchains or lead to new hybrid models of fundraising that combine elements of traditional VC, crowdfunding, and token sales. It could also help bridge the gap between the speculative world of cryptocurrency and tangible business outcomes, potentially improving the perception of cryptocurrency projects among mainstream investors and regulators. However, it also raises important questions about regulation, investor protection, and the role of meme coins in serious business endeavors.

How does Believe leverage the Solana blockchain?

Believe leverages Solana's high-speed, low-cost transaction capabilities to facilitate the rapid launching and trading of tokens. This makes Solana an ideal blockchain for the kind of quick, high-volume trading that meme coins often experience. By choosing Solana, Believe can offer a smoother, faster user experience compared to platforms on slower or more expensive blockchains. This choice also aligns with Solana's broader mission to support innovative, user-friendly applications in the cryptocurrency space.

What are the regulatory considerations for Believe?

The regulatory landscape for platforms like Believe remains uncertain. While the team behind Believe has taken steps to distance themselves from language that might suggest their tokens are securities, the legal status of these meme coins is still ambiguous. This creates challenges for token issuers who want to remain compliant while still offering utility to their token holders. The platform operates in a "messy middle" where clear regulatory guidelines are lacking, which could potentially limit its growth or force changes to its model in the future.