After more than 4 months, Binance Alpha has finally relisted a meme coin, and it is a US stock meme coin called MarsCoin.

We should be among the first to propose that US stock memes are likely to become a phase of the grand narrative:

"US Stock Meme, Robinhood Chain Finally Found Its Own Grand Narrative"

In the above article, our conception was that the Robinhood Chain would lead the US stock meme narrative, but the current situation seems to indicate that BSC has stolen the spotlight.

So, how should we understand the current market situation? And how should we look ahead to the possible future direction of the US stock meme narrative?

Binance's Thoughts on US Stock Memes

It must be acknowledged that not anticipating Binance's involvement in driving this narrative was a mistake in the article mentioned at the beginning, as Binance's pursuit and solidification of the "on-chain asset pricing power" through Binance Alpha has been a long-standing strategic development.

Here, we won't delve too deeply into why only Binance is doing this and why other competitors are not. We just need to quickly summarize why one should keep an eye on the trends of related concept assets on BSC when considering the potential of the US stock meme narrative:

- Binance has the best liquidity advantage among all CEXs. If other CEXs want to take the lead in this narrative, it is also very difficult to arouse the emotions of retail investors.

- Each CEX has a different focus on the source of profits, varying levels of compliance concerns, and other factors, leading to a lack of opponents like Binance with both the motivation and ability to act.

- For public chains or DEXs, they are certainly motivated to compete. Solana certainly hopes to replicate the situation in 2024 when meme coins on their chain were on Binance. However, whether it is a public chain or DEX, they have far fewer cards in hand compared to Binance. Participating in the competition to lead a single narrative involves diminishing returns.

Why spend space on the above views? First of all, whether it is this US stock meme or the next emerging narrative, when we acknowledge the above views, regardless of the narrative, we should promptly pay attention to the trends on BSC because Binance has the power to drive a target with its Alpha and it also has the motivation to do so. As mentioned above, it is almost the only one that satisfies both the strength and motivation criteria.

However, at the same time, we cannot set our expectations too high because not every time will result in an Alpha launch. For example, the recent "coin printing" narrative driven by $ANSEM on Solana. Even if a project launches on Alpha, it is not possible to reach the same heights as Binance's listing every time. The impact of this short-term sentiment-driven hype diminishes with each occurrence.

If one has overly high expectations for the meme stocks due to CZ's tweet mentioning "buying or selling some meme coins in the next few weeks to test some new things," and expects to buy at a billion-dollar market cap and sell at a billion-dollar market cap, one should still carefully consider whether the risk-to-reward ratio is appropriate.

The Popularity of Meme Stocks in the Stock Market, But Still Very Immature

It's a good thing that Binance Alpha has embraced meme stocks in the stock market. However, we also need to recognize that while attention has increased, the market's focus has been overly fixated on these short-term events, such as the flap and four-token airdrop, CZ's potential purchases, and more.

This indicates two things. First, this narrative indeed has room for anticipation, especially since Binance has acknowledged it. Second, this narrative is still very immature at the moment, as the market has not taken it seriously yet. If the market continues to speculate around airdrops and CZ's activities, this narrative will not be able to reach significant heights.

Of course, in the current market environment, hoping to see meme stocks reach a $1 billion market cap target, then liquidity overflowing after reaching a $2 billion market cap similar to the era of ordi, with the entire market going crazy for inscription, is a bit of a pipe dream. But if we hope to see such a high ceiling, especially in the current market conditions, we need to imagine whether meme stocks can break this cycle:

- Although everyone knew that TrumpCoin would eventually turn into a mess, at the time, it was understood that as long as given some time to ferment in the mainstream media, it would certainly break the cycle.

- The entire arena was annoyed by pump.fun's PvP activities and lack of airdrops, but this fast-paced meme strategy attracted many young people to join the gold rush. Many of them joined based on word-of-mouth recommendations from classmates or in-game friends.

The meme stock phenomenon in the US stock market cannot be merely seen as "another new asset issuance narrative" within the circle. Some current strategies include airdropping tokenized stocks to holders or incorporating some DeFi elements, making it impossible to stay within the circle.

As for the potential paths to break the circle, it is envisioned that as the narrative intensifies within the circle and trading volume increases, this would lead to the depletion of tokenized meme stocks on various chains (mainly Robinhood and BSC). Consequently, continuous purchasing of the underlying assets from the stock market would be necessary to mint them on-chain. This is why Robinhood's on-chain $GME once became a focal point of attention. The fervent trading activity caused the tokenized GameStop stock on Robinhood's chain to be bought at a high premium and then gradually bought from the stock market to be minted on-chain, thus bridging the price gap.

If one were to replicate this scenario, there are two approaches. One involves conspiratorial funds manipulating behind the scenes to drive up a specific asset's price, while the other entails the market spontaneously establishing a kind of "consensus standard." For instance, a particular asset gains prominence through development, making the liquidity pool deeper, signifying that the underlying stock asset of the token plays a more significant role on the stock market.

However, the most significant challenge that remains is the "communication issue." The narrative of this meme coin driving the stock market is meant for stock traders to hear. If the aforementioned scenario were to reoccur on a large enough scale to organically break the circle, that would undoubtedly be the most ideal outcome. Yet, if not, a more practical "development logic" needs to be considered:

- Would the holders of the paired stock asset be interested in the narrative that "meme coin trading can boost the stock's market sentiment"?

- Does the target stock asset itself possess meme-worthy attributes that can intertwine with past or ongoing meme events to craft a new meme story?

Based on the above two points, the most suitable asset target should be one that has more room for imagination when paired with "meme stocks" like GameStop, AMC, and Wendy's (Note: This does not imply these stocks lack intrinsic value but rather that events such as short squeezes that occurred with these stocks are meme-worthy enough).

Take GameStop as an example. Many might still remember the retail investor short squeeze saga and the infamous "pulling the plug" incident. Subsequently, the EHT and Solana-based $GME meme coins experienced a surge due to a short-lived attention event caused by the return of the roaring kitty.

However, a quick search on X reveals that GameStop remains a stock that retail investors are passionate about. Particularly noteworthy is the proposed GameStop's "elephant swallowing the whale" acquisition of eBay, leading to considerable speculation, with GameStop supporters rallying behind the cause:

In addition, there has been much analysis of the unusual options activity on GameStop, as well as attention to GameStop CEO Ryan Cohen's Twitter activity. These GameStop enthusiasts are among the stock players most easily drawn into the on-chain meme ecosystem, interpreting meaning even from Ryan Cohen's recent Twitter activity where only GameStop was followed.

This kind of tweet that appears very community-oriented to our on-chain meme players has also occurred with GameStop:

We need to enhance the narrative of "meme coins as a catalyst for the stock market" to make it systematic and spread it to retail investors in the stock market. In this regard, we can see a good start with GameStop, as some stock players focusing on meme stocks have noticed:

Conclusion

Perhaps the extensive discussion of GameStop above may give you the impression that I have a preference, but in fact, what I value is an "anticipated, ultimately circular-breaking propagation path."

Due to compliance reasons, Robinhood is very unlikely to directly list its on-chain assets on the main platform, even though Robinhood CEO Vlad seems to have a good understanding of the meme ecosystem. For example, during the last live stream, he inadvertently leaked $CASHCAT through recent searches, occasionally showing interest in some ecosystem projects, but perhaps this is the extent of what he can do.

Binance has the capability to recreate a stock meme version of Binance Smart Chain (BSC), but it is not necessary. The era of Chinese memes was one where you could never anticipate a play on Chinese tickers, but now the situation with stock memes is more like having a Mario Kart game in the market, with Tencent following suit with a QQ Speed, and there is no need to bankrupt Mario Kart; just allow the market to play on BSC as well, especially considering that MarsCoin on BSC currently leads the market in terms of market capitalization.

So, if this narrative can eventually reach a ceiling like the mythical creation of wealth, relying solely on internal forces is hopeless; it must break the circle. Excluding the scenario of stumbling upon a good fortune, the above is the most ideal path we can envision.

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