Chaos in the Internet Capital Market: Order and Disorder in Decentralized Financing

Author: Choze, Crypto KOL; Compiler: Felix, PANews

A new model is emerging: loud, fast, and speculative. It's called the Internet Capital Market (ICM), and some see it as the most exciting development in the crypto space, while others see it as the most dangerous distraction.

In 2025, a wave of independent developers began issuing tradable tokens for Internet-native apps directly on X (yes, that's it), with the help of tools like Launchcoin and Believe. The result? A permissionless market emerged, where ideas become tokens, hype becomes capital, and speculation becomes product appeal.

ICM is getting attention, but the bigger question is not whether it can go viral, but whether the model is sustainable.

What is ICM?

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

Developers publish an idea. The public participates through tokens. Volume grows, fees accumulate, and developers profit. If enough people believe in it, the token will skyrocket. If not, it will die. This is the core mechanism behind platforms like Believe and Launchcoin.

Proponents say ICMs democratize innovation. Critics say they financialize virtual products. Perhaps both have a point.

The bull case: Speculate first, build later

The strongest arguments in favor of ICMs can be summarized in four areas:

• Permissionless funding of ideas: Anyone with an internet connection can back builders. No VC meetings, no gatekeepers.

• Aligned income: Builders earn 50% of transaction fees, which provides them with direct funding to launch products.

• Frictionless virality: By tying token issuance to X posts, the speed of distribution matches the meme coin dynamics.

• Cultural unlocking: ICM follows the trend of "vibe coding" (PANews Note: Vibe Coding, a programming paradigm assisted by AI). Independent developers, independent creators, and niche founders use retail capital to go from zero to one.

This flywheel gained massive momentum:

• $DUPE market cap surged to $38M in days

• $BUDDY achieved $300K ARR (Annual Recurring Revenue) from AI authoring tools

• $FITCOIN hit 300K downloads and millions of impressions

The pitch was compelling: fund an idea instantly, capitalize on the hype, then build a product based on community belief.

Source: @Prateek0x_

Pessimism: Tokenization noise

But beneath the surface are deep structural risks:

• Lack of product-market fit: Many ICM tokens were launched without any functionality or proof of demand, just gimmicks and memes.

• Speculation over substance: Retail investors buy tokens based on hype cycles rather than business fundamentals.

• Short-termism: Since builders can earn transaction fees immediately, there is limited incentive to maintain long-term value.

• Lack of legal protection: Most ICM tokens are not equity and are not regulated, so accountability cannot be guaranteed.

• Low user stickiness: Tokens can rise quickly, but they can also fall quickly. The alignment of interests between users and the platform is difficult to ensure.

Personally, I think this trend has the potential to engulf the "ICM" label, weakening its original promise of on-chain IPOs and liquid digital equity, turning it into a speculative place filled with "pump and dump" meme coins.

Even among active traders, many frankly admit that their intention is just to make a quick profit, which shows that even so-called believers are playing a short-term game.

Believe: Infrastructure or booster?

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

• Tweet to post your token ($TICKER + name)

• Instantly generate a Bonding Curve and liquidity pool

• Earn 50% of all trading fees

• Once the token reaches a market cap threshold ($100k), access deeper liquidity

Builders don’t need to raise capital the traditional way. But here’s the problem.

When earnings are pre-earned before the product exists, the line between builders and speculators becomes blurred.

While projects like $DUPE and $GIGGLES show some traction, others feel more like memes. The infrastructure is impressive, but the tools don’t serve the purpose.

A Tale of Two Visions

There is a fundamental divide in opinion about ICM:

1. Idealists: ICM is the final form of Web3. On-chain IPOs, decentralized equity, and a transparent and always-open financial layer for internet-native companies.

2. Realists: It’s just a speculative playground for tokenized minimum viable products (MVPs) with no roadmap, no moat, and no accountability.

Both narratives are in the air. Depending on which builder has more momentum, one could displace the other.

Promises and Pitfalls

It’s undeniable that ICM taps into some realities: the desire to support ideas early, the joy of funding culture, and the instinct to speculate on things that might be hot in the future.

But with that same convenience comes the risk of dilution. Without discipline or long-term alignment, ICM risks becoming just another pump-and-dump venue. In this scenario, meme coins take on the guise of productivity, and liquidity masks a lack of substance.

While some players see ICM as the future of startup funding, others see it purely as a profit-making tool. This duality makes it hard to distinguish signal from noise.

Future Directions

For ICM to mature beyond the hype cycle, the following will be needed:

• Lasting builders: Projects need to deliver and retain users, not just raise money quickly. Teams with product-market fit must lead.

• Trustworthy metrics: Screens and dashboards should highlight actual adoption, not just volume or volatility.

• Progressive regulation: If tokenized startups are to reap the rewards of value, they may eventually need a legal framework that blends practicality and compliance.

• Narrative Principle: Not every tradable idea is an "ICM". The term must retain its connotation to have long-term value.

ICMs are not the enemy, but they are not the solution yet. They are like a canvas, and the end result depends on what is painted on it.

While the concept is new, the mechanism of operation is not. The key is whether this can evolve into something structurally significant, or fade away like many previous crypto crazes. Time and development trends will tell the answer.