Meme Coin Market Cools Down, GMGN Trading Fees Plummet

As the enthusiasm in the meme coin market fades, GMGN, which specializes in providing trading tools for meme coins, has recently seen a significant decline in fee revenue, raising concerns among investors about whether GMGN can sustain its operations. According to the latest data, GMGN’s annualized fee revenue stands at $93.98 million, but the charts indicate a noticeable downturn in income.

GMGN rapidly rose to prominence due to the booming meme coin market. However, as market sentiment cooled, the platform’s trading volume and fee revenue shrank significantly, leading many online users to question whether GMGN can survive in the long term.

Mask Network Founder Suji Speaks Out: GMGN’s Issue is Not Burning Money, But Not Burning Enough

Regarding GMGN’s current situation, Mask Network founder Suji expressed his views. He believes that GMGN is not a bad product; on the contrary, although he does not trade frequently, GMGN is one of the few trading tools he uses, and its social features are also highly attractive. However, Suji is concerned that GMGN may face more severe competition issues, as “this is a super racetrack, and in such a market environment, merely having a good product is not enough; sufficient capital leverage and market operations are also required.”

Suji cited Xiaomi’s MiTalk as an example, pointing out that although Xiaomi had leading technology at the time, it was ultimately surpassed by Tencent’s WeChat due to insufficient capital and market promotion. He believes GMGN now faces similar challenges, and in this highly competitive market, GMGN needs not only steady development but also a “mad dog” strategy—intensifying capital investment, enhancing market aggression, and even “scaring competitors to death.”

Is GMGN Really “Burning Money Not Enough”? Suji Points Out Financing Dilemmas

Suji further analyzed that GMGN generated $60 million in profit in less than a year, which is quite impressive in a normal market environment; however, compared to the bull market of 2021, this scale of capital remains relatively insufficient. He mentioned, “This figure is actually just the amount Mask Network raised in three days during the 2021 bull market.”

He believes GMGN’s biggest problem lies in not raising substantial funds during the market boom. “In the current market environment, it is almost impossible for GMGN to raise $100 million.” This implies that GMGN may lack enough capital to cope with fierce price wars and market expansions in the face of potential “dog-eat-dog” competition in the future.

Intensified Market Competition: Where Should GMGN Go From Here?

Suji used Farcaster as an example, noting that although the product does not perform as well as GMGN in terms of technology and market performance, its available funds are almost three times that of GMGN, indicating that “big money still has to be raised from the capital market, rather than relying solely on product profitability.” This means that if GMGN cannot quickly secure sufficient capital, it may be at a disadvantage in market competition.

In summary, GMGN’s biggest challenge currently is not the product itself but rather issues related to capital operations and market strategy. Whether GMGN can find new financing channels or adjust its market strategy to respond to competition will be crucial. For investors, GMGN’s next steps are worth close attention.

Risk Warning

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