Now is the meme super cycle, and it is also a super cycle for attracting new users

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Author:TPan

Compiled by: TechFlow

A few weeks ago, a speech at Token2049 was widely circulated on X platform, garnering over 1.4 million views and tens of thousands of interactions: Murad's Memecoin Supercycle Speech.

Note the crazy ratio of likes to bookmarks!

Key points from Murad's speech:

  • Whether old or new, Memecoins outperform all other Tokens.

  • Tokens are overvalued before listing due to involvement of various parties (founders, VCs, angels, centralized exchanges, market makers, KOLs, etc.), ultimately leaving retail as the exit liquidity.

  • Memecoins have proven their "utility" through DOGE, SHIB, PEPE, and WIF. I'm not a Memecoin supporter at all, but I've documented the early stages of PEPE and WIF and why they were interesting.

  • The crypto industry is actually a Token production industry masquerading as a software production industry.

  • Memecoins have more organic, decentralized, and fair distribution. Impoverished holders become unpaid full-time evangelists.

  • Retail ultimately cares about making money, having fun, and a sense of belonging.

  • All Tokens (both tech and Meme) are casino tables. "Why should we play on your table when we can have our own table?"

  • The Memecoin supercycle also has external factors: inflation, AI replacing jobs, income inequality, loneliness, mental health issues, more online time, and fewer "success" paths. This is what's called: financial nihilism.

  • Altcoins are not primarily about technology, and Memecoins are not primarily about Memes. Both are Token-based communities that attract people through different narratives and technologies to drive price appreciation.

  • The best Memes become a culture, even a mini-religion, with shared values, lifestyle principles, ideals, ideologies, artworks, activities, hopes, and visions.

Whether you like it or not, this speech provides a useful framework to understand why Memecoins have become a major theme and may not have reached their peak yet. So, put aside your biases and go watch it if you haven't.

Additionally, Murad's rapid speaking style and quick flipping of slides almost makes you feel like you're trading Memecoins, watching the price chart rapidly fluctuate up and down.

Where will Memecoins go next?

Untoken-ized Memes have already established their status as a medium of exchange, cultural units, and composable content pieces. They dominate social media feeds, create overnight celebrities (e.g., the Hawk Tuah girl turned Haliey Welch), and have entered mainstream media.

Therefore, the Token-ization of Memes is a natural evolution. After all, all sorts of content and assets are being Token-ized, from written content, car ownership, government bonds/commodities, all the way to digital collectibles and art.

But what's interesting about Memecoins beyond the usual traits?

Memecoins' Good Deeds

Vitalik Buterin

One strategy for Memecoins to gain recognition is to send a portion of Tokens to prominent figures. If a Memecoin is launched on Ethereum, Vitalik Buterin is usually the top choice target.

Yesterday, Vitalik converted some of his held Tokens into ETH and donated $642,000 to charity, noting that Memecoins have the opportunity to do more than just make holders rich and speculative.

vitalik.eth:

I'm grateful to all the Memecoins that have directly donated portions of their token supply to charities.

(For example, I've seen ebull donate large amounts of tokens to various causes last month.)

Any tokens sent to me will also be donated to charities (thanks moodeng! The 10 billion today will go towards anti-airborne disease tech), but I'd much prefer if you sent them directly to charities, or even set up a DAO to let your community directly participate in the decision-making and process.

As I've said before, I think the best path for Memecoins is to be able to have the greatest positive impact on the world, so it's great to see this actually happening!

This is not the first time he has done this, in 2021 he donated $1 billion worth of SHIB to support COVID relief in India.

Pump.science

Pump.science is a platform developed by Molecule, a platform that provides funding for early-stage decentralized science (DeSci) research, combining Memecoin and prediction market mechanisms.

Pump.science focuses on longevity research on worms through low-cost, rapid testing methods (click here for more information on the testing methods).

How does it work?

  • Researchers can submit drug strategies to be listed on the Memecoin launch platform pump.fun

  • When the Token market cap reaches $10,000, the live recording of the experiment begins

  • Users can speculate on the effectiveness of the tested compounds by buying and selling Tokens.

While Pump.science doesn't attract as much attention as a typical Memecoin, this platform, which has only been around for three weeks, is introducing new interactive mechanisms to engage people in its domain, has clear social benefits, and may create some reward systems to align incentives.

Memecoin Marketing and Sponsorships

Cryptocurrencies are no strangers to eye-catching marketing campaigns and sponsorships, primarily in the sports domain, some of which are still ongoing today.

These sponsorships are reasonable, as the examples above demonstrate billion-dollar corporate advertisements aimed at large-scale audiences. But what about a Memecoin? Earlier today, the APU Memecoin community announced a partnership with the Bare Knuckle Fighting Championship (BKFC), where the APU (a derivative Pepe character) logo will be displayed in the fight arena and other locations. It's worth noting that an individual within the APU community has reportedly taken on the sponsorship costs alone, suggesting they may stand to gain a significant amount of attention from the sponsorship. Additionally, Emily Lai noted that upon arriving in London, she observed the Memecoin community heavily utilizing guerrilla-style flyposting marketing tactics. If you find the idea of NFT graffiti or stickers plastered on street poles frustrating, unfortunately, this may just be the beginning (e.g., there is still a wallet holding $650,000 planning to place WIF on the Las Vegas Sphere).

What can non-speculators do about this?

Memecoins can trigger a knee-jerk reaction in some within our industry, which is ironic, as those outside the industry generally have a similar response. The simple answer is: do nothing. Take a deep breath, let it happen, and accept the fact that Memes have and will continue to reach billions, if not more, in influence. Let them do their thing, as there's no need to oppose or hate it. A more detailed answer is to be grateful. Why? NBA Top Shot attracted a massive influx of new users, with over 80,000 unique buyers in February 2021 alone. Many of these users eventually gravitated towards Non-Fungible Tokens, with some later becoming entrepreneurs, creators, or contributors within the ecosystem. I was one of those people who came here for the speculation and potential for massive gains. Over the years, I've encountered many others with similar experiences. Whether you love it or hate it, Memecoins are bringing a new wave of users and demographics to our world, which may validate the Memecoin supercycle hypothesis. Some of these people are using a crypto wallet for the first time (fortunately, with a better experience). Some are learning about slippage and swapping. Some may lose money and consequently decide that cryptocurrencies are indeed a scam. But some will stick around, curious to see what else is happening in this crazy world. This is the moment the Memecoin supercycle (onboarding) begins.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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