Internet Capital Market Chaos: Order and Disorder of Decentralization Financing

While some participants view the Internet Capital Market (ICM) as the future of startup financing, others see it purely as a profit-making tool.

Written by: Choze, Crypto KOL

Compiled by: Felix, PANews

A new model is emerging: noisy, fast, and full of speculation. It is called the Internet Capital Market (ICM), which some believe is the most exciting development in the crypto space, while others see it as the most dangerous disruption.

In 2025, a wave of independent developers began issuing tradable tokens for internet-native applications directly on X (that's right, here) using tools like Launchcoin and Believe. What was the result? An unpermissioned market emerged, where creativity turned into tokens, hype turned into capital, and speculation turned into product appeal.

ICM is attracting attention, but the bigger question is not whether it can become popular, but whether this model is sustainable.

What is ICM?

ICM is a decentralized platform where capital flows directly to application developers and creators. No venture capital, no banks, and no app stores. It blurs the lines between crowdfunding, token issuance, and equity speculation.

Developers release an idea. The public participates through tokens. Trading volume increases, fees accumulate, and developers profit. If enough people believe, the token will skyrocket. If not, it will perish. This is the core mechanism behind platforms like Believe and Launchcoin.

Supporters believe that ICM democratizes innovation. Critics argue that it financializes virtual products. Perhaps both have a point.

Bullish Argument: Speculate First, Build Later

The strongest arguments in support of ICM can be summarized in four aspects:

• Permissionless creative financing: Anyone with internet access can support builders. No venture capital meetings, no gatekeepers.
• Aligned income: Builders earn 50% of the transaction fees, which provides them with direct funding to launch products.
• Frictionless viral distribution: By linking token issuance with X posts, the distribution speed matches the dynamics of meme coins.
• Cultural Unlocking: ICM aligns with the trend of "Vibe Coding" (PANews note: a programming paradigm assisted by AI). Independent developers, creators, and niche founders utilize retail capital to go from zero to one.

This flywheel has gained tremendous momentum:

• The market cap of $DUPE soared to 38 million dollars in just a few days.
• $BUDDY achieved an ARR (Annual Recurring Revenue) of $300,000 through AI creation tools.
• The downloads of $FITCOIN have reached 300,000, with millions of exposures.

This slogan is highly attractive: provide funding for creativity immediately, leverage hype, and then rely on community belief to build the product.

Source: @Prateek0x_

Bearish Theory: Tokenization Noise

However, beneath the surface lies deep structural risks:

• Insufficient product-market fit: Many ICM tokens had no functionality or proof of demand at launch, merely serving as gimmicks and memes.
• Speculation outweighs substance: Retail investors purchase tokens based on speculation cycles rather than business fundamentals.
• Short-termism: As builders can earn transaction fees immediately, there is limited motivation to maintain long-term value.
• Lack of legal protection: Most ICM tokens are not equity and are not regulated, which cannot guarantee accountability.
• Low user stickiness: Tokens may rise rapidly, but they can also fall just as quickly. It is difficult to ensure the alignment of interests between users and the platform.

I personally believe that this trend may envelop the label "ICM", weakening its original commitment to on-chain IPOs and liquid digital equity, turning it into a venue filled with meme coins characterized by "pump and dump" schemes.

Even among active traders, many candidly admit that their intention is just to make quick profits, indicating that even so-called believers are playing short-term games.

Believe: Infrastructure or Catalyst?

The core of the ICM ecosystem is the Believe ecosystem, which allows anyone to issue tokens in seconds. The process is very simple:

• Tweet Release Token ($TICKER + Name)
• Generate Bonding Curve immediately and liquidity pool
• Earn 50% of all trading fees
• Once the token reaches the market value threshold of $100,000, deeper liquidity can be obtained.

Builders no longer need to raise funds in the traditional way. But here's the problem.

When profits are earned in advance before the product appears, the line between builders and speculators becomes blurred.

Although projects like $DUPE and $GIGGLES show some appeal, other projects feel more like memes. The infrastructure is impressive, but the tools do not achieve their purpose.

The Story of Two Visions

Regarding ICM, there is a fundamental divergence in people's views:

• Idealists believe that ICM is the ultimate form of Web3. On-chain IPOs, decentralized equity, and a transparent and always open financial layer for internet-native companies.
• Realists believe: it is merely a speculative paradise for tokenized minimum viable products (MVP), lacking a roadmap, a moat, and accountability mechanisms.

Both claims are circulating. Depending on which side's builders have strong development momentum, one side may replace the other.

Prospects and Pitfalls

It is undeniable that ICM touches on some real factors: the desire to support creative ideas early on, the enjoyment of a financing culture, and the instinct to speculate on things that may be booming in the future.

But this same convenience also brings the risk of dilution. Without discipline or long-term collaboration, ICM could become just another place for "pump and dump" schemes. In this case, meme coins don the guise of productivity, while liquidity masks the lack of substance.

While some participants view ICM as the future of startup financing, others see it purely as a profit-making tool. This duality makes it difficult to distinguish between signals and noise.

Future Development Direction

To make ICM go beyond the hype cycle and mature, the following points need to be addressed:

• Persistent Builders: Projects need to deliver and retain users, not just quickly raise funds. Teams that fit the product-market must take the lead.
• Reliable Metrics: Screens and dashboards should highlight actual adoption rather than just trading volume or volatility.
• Progressive Regulation: If tokenized startups wish to achieve value returns, they may ultimately need to integrate a legal framework that combines practicality and compliance.
• Narrative Principle: Not all tradable ideas are "ICM". The term must retain its connotation to have long-term value.

ICM is not the enemy, but it is also not the solution at the moment. They are like a canvas, and the final result depends on what is drawn on it.

Although it is a new concept, its operational mechanism is not unfamiliar. The key is whether this can evolve into something of structural significance, or if it will gradually fade away like many previous crypto booms. Time and development trends will provide the answer.