By Jam, CloudY
Editor: Vincero, YL
summary
summary
It is not difficult to find that the successful dissemination of Meme Coin is closely related to the large amount of attention brought by the circulation of emojis, rebellious culture and the myth of getting rich. In addition, the promotion role of Musk and other big Vs in the Meme Coin market cannot be ignored, and his words and deeds have had a very important impact on the market value of related projects. Reviewing the previous Meme market, it can be considered that the Meme craze is the ultimate expression of the herd effect. Investors investment behavior in this situation is often a follow-up buying, which pushes up asset prices, and more speculators are subject to the myth of getting rich. Brainwashing into the market further pushes up asset prices, thus making the Meme asset bubble. Except for the moment when the bubble burst, everyone involved was happy.
If there is a need to define Meme Coin, from our research point of view, it may be:
1. Project tokens without value capture/landable products.
2. There is a huge community consensus.
3. Have a strong cultural identity.
Meme Coin is usually a project token that lacks value capture or landable products, however, it has a huge community consensus and strong cultural identity. This combination of features has allowed Meme Coin to gain widespread participation in the market while having a profound impact on the cryptocurrency community and ecosystem.
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BTC is the largest meme coin
From this we can say: BTC is the largest Meme Coin.
BTC has no deflation, only halved output, and has no practical use, but is traded as a currency itself. However, since BTC was born in 2008 to the present, it has increased by a large amount, established a huge consensus, and has a large number of Holders. BTC fundamentalism has become a BTC culture that is constantly being challenged, and the resulting Crypto Native has gradually become the pursuit of the Crypto industry.
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Rebelism
A lighthearted, playful way to bring cryptocurrency into wider popular culture, Meme Coin is a digital asset with an element of entertainment and humor.
The origin of Meme Coin is closely related to the elements of parody and entertainment in popular culture. Taking DOGE, SHIB, PEPE and AI DOGE as examples, the development of these projects shows the carnival of retail investors and the expression of group spirit. These projects attract users attention and participation through emoticons and cultural symbols, thus becoming popular projects in the Meme Coin market.
The success of these projects is partly due to the fact that they use popular emojis and cultural appeals as communication vehicles to quickly attract the attention of investors, even many investors outside the circle. These memes and cultural symbols have gone viral on social media, making these projects a meteoric rise in the Meme Coin market.
Through the use of spoof and entertainment elements, these projects have managed to create a fun and eye-catching recognition, attracting a large number of investors and participants. Their creativity and uniqueness have breathed new life into the Meme Coin market, and also demonstrate the enormous influence of group spirit in Crypto.
The rebellion against the existing strong consensus will also be recognized and followed in the Crypto industry, because BTC itself is a rebellion against the real currency system. This may come from the patricide plot rooted in the Western mind, or the Oedipus plot. Therefore, Meme Coin can be said to be born out of rebellious culture, a rebellion against the mainstream, a rebellion against the mainstream...
Just like, DOGE comes from the rebellious culture against BTC.
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(Japanese Shiba Inu Kabosu)
SHIB is a cultural rebellion against DOGE.
"Ryoshi"At the beginning of creating Shiba Inu, it advertised that SHIB is a dog killer, and wanted to imitate DOGEs Srypt mining algorithm to create a new Dogecoin on Ethereum. Contrary to DOGE as a payment currency, SHIB wants to build its own ecosystem and release a series of products, such as Shibaswap, SHIBOSHIS NFTs, SHIBA Eternity Game, SHIBA Metaverse, Shibarium Layer 2, etc.
And PEPE is a rebellion against dog IP and the whole Meme Coin.
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attention economy
But for a Meme Coin to really become a Meme Coin, it needs enough and continuous attention.
There are tens of thousands of Meme Coin contracts deployed every day, and only those that are paid attention to are called Meme Coin, otherwise they are all dogs. Not just Meme Coin, under the current situation, the entire market is dominated by the attention economy.
When we count the once popular Meme Coin, we can find that the development of these projects shows the carnival of retail investors and the expression of unique culture.
1. Most projects gain initial attention through cold start through airdrops and emojis. For example, airdrop users of popular projects to gain initial attention (AI DOGE), or gain the attention of well-known emoji users (PEPE).
2. After a certain number of early users, these projects used popular emoticons and cultural IPs as carriers to spread virally in social media, quickly attracting the attention of investors, even many investors outside the circle, These Meme Coins have risen rapidly. And being mentioned by KOLs like CCTV or Musk is the best channel of communication and source of attention.
3. Meme Coin mostly uses Fairlaunch to directly enter the pool to complete the initial issuance. Therefore, a small amount of funds can cause a huge increase, and use social communication to eliminate zero and attract attention. Every doubling and erasing will further attract more users’ attention, causing Fomo emotions.
4. The continuous and long-lasting swiping of the screen, combined with early buying and long-term holding of the mythical story of getting rich and gaining a lot of wealth, breaks the circle and pulls the users emotions to the extreme.
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Emoticons as a traffic carrier
As a product of traffic, emoji culture has spread rapidly in the Internet age and aroused resonance among users. As a tool for conveying information and group emotions, emoticons provide a basis for the spread of Meme Coin. Through the existing emoticon package IP, Meme Coin can spread rapidly on social media platforms, forming a viral market effect.
Emoticons are a collection of symbols that express emotions, expressions or meanings in the form of images or icons. They are commonly used on platforms such as social media, chat apps and online forums. Emoticons enhance peoples expressiveness in online communication by using cute, funny or exaggerated images to convey emotion and intention in a concise and intuitive way.
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（PEPE）
Musk: Meme Coins largest market maker
As an important figure in the Meme Coin market, Musk has had an important impact on the market value of related projects through his speech and actions. Take his calls for projects such as DOGE, SHIB, and FLOKI as examples. These remarks have aroused investors interest and follow-up buying behavior. In addition, some projects are even directly associated with Musk, using his name or image to attract investors attention.
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（From CoinGecko）
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（From Chain Catcher）
The Meme Coin craze is the ultimate expression of the herd effect
Crypto, as an industry that has been criticized since its inception, practitioners are eager to be recognized. As a complex financial product, Cryptocurrency has attracted a large number of investors without sufficient financial knowledge because of the lack of thresholds, but the lack of standards has made these users victims of zero-sum games. Therefore, everyone usually gathers in the form of a group/DAO, and at the same time it is easy to blindly follow their own investors with strong subjective judgments. Therefore, the industry naturally tends to clique and follow opinion leaders or celebrities.
In this case, most projects will try to find Big Name to cooperate with in publicity, in order to show their product quality and be accepted by the big community. As a project with no fundamentals, Meme Coin relies more on mobilizing users emotions, so it needs to establish a strong community and be recognized by large influencers. The prerequisite for a Meme Coin to last for a long time is to build a community consensus and spread its own culture in order to gain recognition.
In other words, the meme craze is largely the ultimate expression of the herd effect. Investor enthusiasm and bandwagon buying drove Meme Coin’s asset price higher, not fundamental analysis. This phenomenon often leads to the formation of price bubbles, driving asset prices well above their intrinsic value. Investors synthetic awareness and inner fear of missing out further fueled asset price increases.
In the field of behavioral economics,Herd EffectIt refers to the fact that individuals are influenced by the behavior of others when making decisions, which leads individuals to imitate or follow the behavior of others instead of making independent decisions based on their own information and judgment.
The performance that translates into investing is that investor enthusiasm drives asset prices, rather than their fundamental analysis, which often leads to price bubbles, where asset prices soar to levels well above their intrinsic value, and continued rising asset prices and The growing discussion in the community will stimulate more investment buying, which will further push up asset prices.
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（Herd Effect）
In the recent meme market, according to the data of Lookonchain, the myth of some smart money getting rich has become a stimulus for other investors to buy. The illusion of investment is bought, which further pushes up asset prices.
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driven by capital
For example:
For example:
The explosive power of DOGE comes from the promotion of Elon Musk: its own influence and the strong financial resources behind it
The explosive power of PEPE comes from years of accumulation of PEPE emoticons and the team’s tens of millions of dollars in market-making funds
Whether it is looking for KOL to bring orders, community cooperation or listing on the exchange, financial support is required, and the increase in currency prices and the depth of liquidity require a large amount of continuous funding. For example, a simple repost to a high-quality project introduction thread requires 100-1000 u per person, and in order to ensure information coverage, such a KOL needs to find 10-20 people. For cross-scale community cooperation, it is also necessary to provide resources worth at least thousands of u in exchange. And the listing of the exchange needs to pay tens of thousands or even hundreds of thousands u, as well as the currency listing fee and market maker fee of the project token. It takes hundreds of thousands of dollars to make an ordinary project, let alone a Meme project that focuses on publicity.
In addition to repeatedly appearing on social media, strengthening awareness for multi-faceted and multi-target groups also requires a large amount of continuous funds to appear in the users life circle for a long time and establish cultural identity. If you want to root a cognition or establish a cultural identity in peoples minds, you must repeatedly enter their life circle from different angles for a long time, just like a CryptoPunks that was given away for nothing at the beginning, but was auctioned for a maximum of 23.7 million US dollars. It is precisely because a Genesis NFT and encrypted OG image is constructed in the users mind. Owning it is not only Crypto Native, but also has the same status as Shopify founder Tobi Lutk and Dallas Mavericks owner Mark Cuban. The realization of such cultural identity has an inevitable relationship with Jason Abbruzzeses original article This Ethereum-based project may change our perception of digital art and the continuous auction of traditional art galleries.
Therefore, from the perspective of cultural identity and community building, Meme Coin and NFT have similar approaches but equally satisfactory results. On the other hand, the establishment of IP in the real world seems to be a similar path. For example, the Star Wars universe, the Disney universe, the Marvel universe, and the Harry Potter universe are all building their own cultural identity and community consensus. Use text stories and visual images to stimulate users, and build a cultural system from multiple perspectives over a long period of time and repeatedly, and then expand peripheral business based on a stable user group.
Reference
[ 1 ] DOGECOIN official website https://dogecoin.com/zh-cn/#what-is-dogecoin
[ 2 ]SHIBA official website https://www.shibatoken.com/
[ 3 ] PEPE official website https://www.pepe.vip/
