Introduction
Recently, with the emergence of the new Meme shilling king Murad, you should also see a high-frequency phrase that keeps appearing:
"Memecoin Cults"
Cults, of course, is an interesting metaphor, and it more often refers to a phenomenon that appears in the cryptocurrency community, including but not limited to: strong group identity, irrational beliefs, missionary-style propaganda, and the worship of shilling leaders.
Correspondingly, Memecoin Cults have seen decent price increases, but the question is, how can this seemingly superficial and outdated logic have so many "believers"?
In addition to the simple motive of profit-seeking, the popularity of Memecoin Cults may be far more complex than that.
This article interprets the current popular Memecoin cult phenomenon from the perspective of compensatory psychology, which can help you better understand how, in the current super-cycle, everyone "questions Meme, understands Meme and embraces Meme" step by step, and forms an unbreakable consensus circle.
The formation of the "Memecoin Cult" follows similar psychological and social processes as the formation of other cults. But in the current environment, it is driven by economic losses, emotional attachment, and social validation through the crypto market and online communities.
Here are the different stages of thought in the process of creating a Memecoin cult:
Disillusionment with Utility Tokens - Loss and Distrust
Retail investors often start their journey into the crypto world by losing money in utility tokens or VC-backed projects, and this is where the initial psychological transformation takes place:
Cognitive Dissonance - People believe in the utility or long-term value of these tokens, but after experiencing financial losses, their thoughts are in conflict. They believe these assets can deliver, but reality does not match their expectations.
Loss of Trust - People are disappointed with the promises of these utility tokens. Financial losses lead people to lose faith in the system (VC-backed or utility-focused projects), triggering a psychological need to find another narrative to explain why they were wrong.
Seeking Redemption - After disappointment, people's minds become open to new ideas, especially those that promise faster or more dramatic financial gains. This openness lays the foundation for them to eventually turn to Memecoins.
Memecoin Success - Reinforcing Beliefs Through Gains
Next, individuals make money by investing in Memecoins, leading to an emotional transformation:
Relief and Validation - After losing money in utility coins, profiting from Memecoins feels like validation. People begin to associate Memecoins with success, triggering confirmation bias: they start to believe that Memecoins are not only profitable, but also legitimate alternatives to utility tokens.
Bias Reinforcement - At this stage, people's minds start to create a narrative that Memecoins will be difficult to operate. People's biases shift towards Memecoins, seeing them as a new path to financial success, despite the lack of fundamental support. The brain does not need Memecoins to have deep utility; the profit and emotional relief effects provide enough validation.
Social Frustration - Efforts to Convince Others
Individuals begin to promote their new beliefs in Memecoins to others, but face resistance:
Inability to Articulate the Vision - Although individuals believe in the potential of Memecoins, they struggle to effectively convey their vision to others. This may be due to the lack of a coherent theory behind Memecoins, leaving them with only emotional beliefs, not logic.
Social Friction - Resistance from others creates a sense of frustration. The mind seeks social validation for the new-found beliefs, but without external confirmation from peers, the beliefs remain personal and internal. This prompts them to double down on their beliefs and continue to actively promote Memecoins on social media.
Cognitive Consolidation - The more a person is rejected by others, the more entrenched their beliefs become. At this stage, the mind starts to seek external reasons to explain why others do not understand what they "see".
Encountering a Charismatic Memecoin Theorist - Emotional Connection
When an individual encounters a charismatic figure, a turning point occurs, as they provide a compelling narrative for the future of Memecoins:
Emotional Appeal - The charismatic theorist provides the missing knowledge framework that the individual needs to support their beliefs. These theories explain the chaotic, speculative world of Memecoins and provide reasons for them to become the future.
Resonance - After studying the charismatic figure, the individual finds similarities in their story, establishing an emotional bond. The theorist's background story resonates, as it reflects the individual's own journey - economic losses, disillusionment, and redemption through Memecoins. This emotional connection strengthens the trust in the theorist's ideas.
Cognitive Closure - The mind finally experiences a sense of closure. The charismatic figure's narrative resolves the internal conflict (between past losses and current gains) and provides a structured way to explain why Memecoins are the future. The theorist's framework becomes a new knowledge pillar in the individual's belief system.
Proselytizing on Social Media - Dopamine Surge
As the individual begins to promote the charismatic theorist's ideas on social media, their influence starts to expand, generating powerful psychological reinforcement:
Dopamine Feedback Loop - Whenever the individual receives likes, comments, or new followers on social media, their brain is stimulated by dopamine. This reward system reinforces the behavior of spreading the theory, making the individual feel externally validated.
Memecoin Performance Reinforcement - If the Memecoin price rises during this period, the individual receives additional validation, further consolidating their beliefs in the currency and the theorist's ideas. The brain begins to associate economic success with the propagation of the ideology, creating a powerful feedback loop of economic and social rewards.
Social Identity Transformation - As the social media influence expands, the individual starts to see themselves as a Memecoin evangelist or proponent. Their sense of identity becomes intertwined with the success of Memecoins and the charismatic theorist's ideas.
Memecoin Cult Formation - Leader and Shared Beliefs
Finally, as other individuals with similar biases and frustrations find the same charismatic theorist, the individual's beliefs become part of a larger movement:
Discovering the Cult Leader - Other Memecoin enthusiasts who have also lost faith in traditional coins and have a bullish sentiment towards Memecoins eventually find the same charismatic leader. This creates a large following around the leader's narrative, and the individual realizes they are part of something bigger than themselves.
Shared Belief System - Memecoin worship is formed around a shared belief in the theorist's ideas, the profitability of Memecoins, and the emotional and financial success they promise. The charismatic leader becomes the center of this belief system, providing intellectual and emotional validation for the collective biases of the group.
Echo Chamber and Group Reinforcement - As more people join the movement, the group becomes an echo chamber, with members constantly reinforcing each other's beliefs in Memecoins. The charismatic leader's theories almost become sacred, and dissent is discouraged. The individual's thoughts now operate in a closed system, where opposing views are rejected, and the collective belief in Memecoins becomes even more entrenched.
Cult-like Behavior - Full Cognition and Commitment
At this stage, the individual is fully committed to the Memecoin movement:
In-group/out-group thinking - The individual now views MEME coin believers as the "in-group" and anyone who doubts MEME coins as the "out-group". People's thinking starts to protect the cult-like belief system, reject skepticism, and double down on the MEME coin narrative.
Cognitive consolidation and social identity - The individual's identity is now inextricably linked to the MEME coin movement. They derive self-worth from social media influence and MEME coin performance, and the ideas of charismatic leaders are seen as absolute truth.
Sustained dopamine rewards - The individual continues to receive regular dopamine stimulation from social media interactions and MEME coin price fluctuations, making it increasingly difficult to detach from the belief system.
In this process, the individual's thinking shifts from economic disillusionment to an emotional connection with the charismatic leaders, followed by intellectual validation of their biases, and ultimately a comprehensive cognitive and social commitment to MEME coin worship.
This cycle is driven by emotional, social, and economic reinforcement, making it a powerful and self-sustaining feedback loop.
MEME coin worship operates as a shared belief system, providing economic hope and a sense of social belonging, all of which are driven by its central charismatic theorists.
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