Believe App's LAUNCHCOIN has shown significant growth, increasing by nearly 3,000% in the last week and 27,000% in a month amidst heightened interest in the Believe App. Operating on the Solana blockchain, users can create tokens by directly responding to X (formerly Twitter) through the platform.
Although activity on Believe has slowed down lately, LAUNCHCOIN's rapid surge has sparked discussions on the platform's potential in the long term. Nevertheless, doubts linger regarding the sustainability of this growth and the risks linked to the broader trend of Internet Capital Markets that it mirrors.
Believe functions as a meme coin launchpad on Solana, enabling the creation of tokens by replying to posts from its "Launchcoin" X account. Founded by Ben Pasternak and rebranded from Clout, the platform has seen its native token, LAUNCHCOIN, previously known as PASTERNAK, skyrocket in value over the past week.
Believe empowers creators to swiftly release meme coins via social media, earn fees from trades, and transition tokens to Meteora if they achieve a $100,000 market cap. While this process democratizes token creation access, concerns arise over potential scams, spam, and adjustability of metadata facilitating misleading rebranding.
The straightforward token launch mechanism aligns with the emerging concept of Internet Capital Markets, reshaping online capital fundraising. ICM allows for the tokenization of internet-born concepts like memes, apps, or platforms into tradable crypto assets, eliminating conventional financial intermediaries.
Believe App observed a surge in user activity from May 13 to May 15, with over 4,000 new tokens being launched daily via its social-media-based platform. Despite briefly becoming one of Solana's most active launchpads within this period, the pace has since slowed down significantly, indicating a potential cooling off of initial excitement surrounding the platform.
Despite its temporary momentum, Pump.fun remains the dominant Solana launchpad, consistently overseeing between 20,000 and 30,000 new token launches daily. Believe managed to capture 13.6% of all Solana launchpad token launches at its peak on May 15, but this figure dropped to 2.6% by May 17.
Some tokens from Believe have seen success, with seven of the largest tokens launched on Solana originating from the Believe App in the past week. However, in the last 24 hours, only two Believe tokens made it to this category, illustrating the platform's current volatility.
Revenue generated by Believe over the past 7 days totaled $14.17 million, almost matching Pump's $16 million. Nevertheless, revenue sharply declined to $340,016 in the last 24 hours, while Pump maintained a significantly higher $2.5 million.
LAUNCHCOIN, the native token of Believe App, surged by almost 3,000% in the last week, escalating from $0.008 to $0.25. This impressive price hike elevated its market cap to approximately $250 million, potentially setting the stage for a challenge at the $0.38 resistance level.
However, if indicators point to diminishing engagement or waning excitement, LAUNCHCOIN might encounter a correction, possibly retesting support at $0.16, particularly if the narrative around Internet Capital Markets falls short of expectations. Further downside movement towards $0.097 could occur following a break below that level, marking a deeper retracement from recent highs.