In the fast-paced world of crypto, marketing often gets a bad rap—and for good reason. But as David Phelps, co-founder of Jokerace, pointed out in a recent thread on X, the issue isn't just poor strategies or overhyped promises. It's about who you're actually marketing to. Spoiler: it's not the everyday retail investor or big institutions you might think.

The Real Audience in Crypto: Market Makers

Phelps hits the nail on the head: "nobody wants to say it, but the reason marketing gets a bad rep in crypto is because there's nobody to market to." He breaks it down simply—the retail market is practically non-existent right now, and institutions only come knocking if your project hits that elusive $100 billion valuation. Instead, the real players pulling the strings are market makers. These are the firms or individuals who provide liquidity to exchanges, buying and selling tokens to keep the markets moving smoothly.

In Phelps' words, "99% of token price depends on them." For those new to the term, market makers earn from the spread between buy and sell prices, and they can heavily influence volatility and pricing. In the meme token space, this is especially true. Think about it: meme coins like Dogecoin or newer ones on Solana often skyrocket or crash based on liquidity provision rather than genuine user adoption. Marketing campaigns that target "the masses" fall flat because the masses aren't there yet—the price action is dictated by these behind-the-scenes operators.

Tying It to Meme Tokens: Hype vs. Reality

At Meme Insider, we focus on meme tokens because they're the wild west of crypto, where marketing can make or break a project overnight. But Phelps' insight explains why so many meme coin launches feel like empty hype. Projects pour resources into viral tweets, influencer shoutouts, and meme contests, only to see prices manipulated by market makers who control the liquidity pools. It's not about building a community of long-term holders; it's about negotiating with these key players to ensure your token doesn't get dumped into oblivion.

Take recent examples from the Solana ecosystem—meme tokens that go viral often rely on market makers for initial pumps, but without real utility, they fade fast. Phelps reminds us that this isn't sustainable. Crypto needs to evolve beyond speculation.

Looking Ahead: Building for Revenue and Real Users

That said, Phelps isn't all doom and gloom. He adds a forward-looking note: "it's short-sighted to think this will always be the case and that crypto won't end up like every other industry: dependent on revenue it can scale." The challenge—and the opportunity—is creating products people actually want to pay for. In blockchain terms, this means shifting from pure speculation to real-world applications, like decentralized finance (DeFi) tools, NFT utilities, or even meme-based games that generate actual income.

For meme token creators, this could mean integrating revenue models, such as transaction fees that fund community rewards or partnerships with real brands. Imagine a meme coin that ties into e-commerce or social platforms, where users spend tokens on goods or services. That's where the industry heads, and smart marketing will follow, targeting genuine users rather than just liquidity providers.

Community Reactions and Broader Implications

The thread sparked some lively replies, highlighting the frustration in the space. One user quipped, "maybe the market was the friends we made along the way," complete with a classic SpongeBob meme, underscoring the ironic camaraderie in crypto despite the challenges. Others pointed out how products often fail to solve real problems or end up losing people money, wrapped in toxic narratives.

This conversation is crucial for blockchain practitioners. If you're building in web3, focus on product-market fit (PMF)—that sweet spot where your token or app meets actual demand. Tools like chain abstraction, which simplify cross-network interactions, could help bring in retail users by making crypto less intimidating.

In the end, Phelps' thread is a wake-up call. Crypto marketing isn't broken; it's just aimed at the wrong crowd. As the industry matures, expect a shift toward revenue-driven models that attract real investors and users. For meme tokens, this could be the key to evolving from pump-and-dump schemes to lasting cultural phenomena.

Stay tuned to Meme Insider for more insights on how meme tokens are shaping the blockchain landscape. What's your take on crypto marketing—hit or miss? Drop your thoughts in the comments!