The Evolution of Fools’ Theory: Memecoins Have Become Mainstream in the Market, Replacing NFTs as the Popular Gateway
In the previous bull market, NFTs became the token of blockchain application popularization, adding fuel to the fire of the era of money printing and creating a booming market.
This round of the market is different because the closed funds of Bitcoin ETF have not brought much external capital to competing coins (Alts), and it remains to be seen whether the interest of external capital can spill over to other cryptocurrencies after the listing of Ethereum ETF. Therefore, some people describe it as a “Bitcoin-exclusive bull market”.
However, “meme coins” have created a new situation in this bull market. Under the three elements of “technical fatigue,” “resistance to venture capital,” and “evading regulation,” meme coins have become the dominant concept currency. The liquidity of meme coins is even better than that of USDT, and their trading volume far exceeds that of other “high-end concept” currencies. (For more detailed discussion, see “The Meme Generation! What Are Meme Coins That Have Better Liquidity Than USDT? Observations from the Volume/Mcap Index”)
Even ETF issuer VanEck’s business has launched a meme coin index called “MEMECOIN”.
Andrew Kang, a well-known investor, stated on May 29th, “The meme coin’s skyrocketing is no longer a signal of market top because meme coins are no longer a dead end for the industry. In fact, they are now the most trusted part of new capital. Meme coins have taken the lead in the market. You must adapt to it, or else you cannot survive.”
Such remarks reveal that fund speculators have entered the meme market and are intentionally conducting large-scale speculation.
Former President Trump strongly endorsed cryptocurrencies, and meme coins named after Trump surged. Media personality Caitlyn Jenner issued the meme coin JENNER, and rapper Iggy Azalea also joined in by launching the meme coin MOTHER. These actions have intensified the meme coin frenzy, similar to the early stages of the NFT hype when many celebrities made recommendations.
Platforms like Pump.fun, which provide fair meme coin issuance rules and generate popularity through “price curves,” have made the meme coin market more mature compared to the past.
In 2006, there was a movie called “Idiocracy.” The story revolved around a US soldier named Joe, who participated in a highly classified military experiment to study human hibernation technology. Unfortunately, an accident occurred during the experiment, causing him to wake up from hibernation after five centuries. Upon waking up, Joe found himself in a completely unfamiliar future world.
This future world was completely different from the one Joe knew. Commercialism had reached uncontrollable levels, and people’s lives were dominated by endless consumption. What was even more shocking was that this society advocated anti-intellectualism, and people lost interest in knowledge and no longer pursued wisdom and innovation. Core values such as social responsibility, justice, and human rights were nonexistent in this world.
The investment market of cryptocurrencies may be entering an era of “anti-intellectualism” where “practical technologies are too distant,” “there are too many manipulations based on hype,” and “organized startups will be regulated.” So why not just lie down and play dead?
Meme coins started with complete circulation, without “a certain foundation holding a large number of tokens” or “lock-up at a low price by well-known venture capitalists.” Everyone who enters the market has the opportunity to become the house and speculate in different market cycles. This allows both big players and small investors to have a fair chance to profit, and the more efficient liquidity compared to NFTs makes this meme era even more vibrant.
What’s more, there is always a chance to become a meme king. Participants do not need to have emotional attachment to meme coins. With thousands of meme coins appearing every day, people can constantly strive for opportunities and try to get the first bite. Profits can be transferred repeatedly, allowing for the pursuit of financial freedom.
Although not everyone agrees with the meme trend, venture capital firm a16z stated, “Why does the market always repeat these cycles and not support truly transformative and more productive blockchain innovation products?” They pointed out that the cryptocurrency market, which has always been driven by speculation, is always filled with utility tokens based on various projects and mostly useless meme coins. The latter, as an important role in the cryptocurrency industry, often plays the lead role in some malicious events.
Andrew Kang MEME Meme Coins
