Editor's Note: The article primarily explores the rise of MEME coins, their potential, and limitations. The author argues that while MEME coins are a unique carrier of cryptocurrency speculation mechanisms, their development is constrained by a lack of innovation, stagnation, and pure reliance on hype. The article suggests that MEME coins should evolve into "social currencies" to drive the crypto industry's development, with social currencies being an evolved form of MEME coins whose success depends on execution rather than luck, potentially leading to new transformations in the crypto field.

Below is the original content (slightly edited for readability):

The cryptocurrency market over the past 18 months has been like a roller coaster, during which we have witnessed the rise of MEME coins. Although MEME coins are not a new phenomenon—in fact, they are one of the oldest forms of cryptocurrency—they have once again proven to be the preferred carrier of the most unique mechanism in cryptocurrency (speculation).

Despite the inherent purity and near-artistic nature of MEME coins, they also have a dark side. No, the problem is not with insiders or small groups—this is a common ailment plaguing the entire cryptocurrency realm. In my view, the real issue lies in the lack of effort, missed opportunities, and people's rigid approach to building MEME coins. Perhaps I am naive, but I refuse to accept that MEME coins should stop here—at least, I hope not.

I firmly believe that the Trojan horse for cryptocurrency popularization is intellectual property (IP), as it can establish credibility in a domain lacking trust ladders, and MEME coins, like Non-Fungible Tokens, are a form of IP. MEME coins have enormous opportunities to drive the crypto industry's development by penetrating the minds of ordinary people. However, they have not broken through the potential boundaries of their crypto-native roles, instead stalling on the path to transcendence, lacking originality and becoming mediocre. I fear that if the status quo is maintained, their drawbacks will outweigh their benefits. To make this category thrive, MEME coins must evolve, and I firmly believe the direction of evolution is to become social currencies—tokens that will transcend lazy pump and dump, transforming into scalable, memorable, and beloved IP.

My proposition is not to replace MEME coins with social currencies, but to add a final stage to their growth roadmap. MEME coins must graduate from meaningless on-chain images and evolve into socially productive and perceptive currencies that can drive the crypto industry's development. I believe some tokens already belong to this category. This article will explore the current state of MEME coins, why successful projects should evolve into social currencies, and the impact of social currencies on the crypto field.

First, What Are Social Currencies?

Social currencies are tokenized assets representing value within a specific community, typically used to incentivize participation, reward contributions, and enhance brand or community loyalty. They operate similarly to traditional currencies, but their value derives from social interactions, reputation, and influence.

In simple terms, social currencies are MEME coins with fundamentals—they are progressive and perceptive, focusing on cultivating communities that can sustainably create viral effects, rather than extracting value from short-lived hype.

MEME Coins vs Social Currencies

MEME coins do not create viral effects—they monetize viral effects, draining heat until it fades. Social currencies, however, are perceptive and can actively promote their IP through multiple media, collaborations, and integrations, continuously generating viral effects.

Typical Life Cycle of MEME Coins:

· Idea → Token Issuance → Community Cultivation → Community Advocacy Narrative → Narrative Dissolution → Community Dissolution

Life Cycle of Social Currencies:

· Idea → Token Issuance → Community Cultivation → Community Advocacy Narrative → Brand Creation → Brand Expansion → Ecosystem Construction → Global Adoption and Recognition as Currency

In my view, all social currencies initially start as MEME coins, but as momentum accumulates, they must evolve into social currencies. The following diagram accurately depicts this process.

I love this diagram because it shows that social currencies are not meant to replace MEME coins, but are their evolutionary form. To me, social currencies are MEME coins with real value support. Anyone can issue a MEME coin, but only the best can infuse it with real value.

If you believe that liquid crypto assets will primarily belong to the retail asset category, then you believe in MEME coins and their success. If you believe institutional capital will eventually flow into Altcoins, then you must anticipate fundamentals-driven assets. Social currencies combine the advantages of both—they have the retail appeal of MEME coins and the interesting nature to attract institutional participation. In my view, social currencies blend the essence of MEME coins and utility tokens.

When dissecting the flaws of MEME coins, it's clear they could have had more potential, but we let social consensus convince us that "MEME coins should do nothing, it has always been this way." I personally refuse to accept this as the future norm for the field. To understand my frustration, one must first deconstruct the current factors constraining MEME coins and how social currencies can resolve these issues.

Flaws of MEME Coins

· Stagnation: Lose momentum when trends fade

· Stigmatization: 99% of investors incur losses, not a long-term holding target

· PvP Mode: Designed for short-term velocity, reduced to a musical chairs game for existing users

· Lack of infrastructure to attract new users

· No real belief support beyond illusory narratives—no fundamentals

· Success often depends on fantasy and luck

Advantages of Social Currencies

· Perceptiveness: Ability to create and capture trends, maintaining continuous relevance

· New Narrative: Combining MEME coins' persistence with real fundamentals supporting growth, suitable for long-term holding

· PvE Mode: Aimed at driving crypto industry development, attracting new users

· Continuously creating demand through content plans, brand collaborations, and IP growth

· Building real things beyond the industry, enhancing holder identity and belief—existing with a real foundational belief

· Success not dependent on luck or narrative, but supported by real fundamentals

Perceptiveness vs Non-Perceptiveness

For traders and investors, the core difference between MEME coins and social currencies lies in perceptiveness—the ability to continuously maintain relevance. Social currencies have perceptiveness while MEME coins do not, and this is what traders should focus on. Perceptiveness = Relevance = Attention = Momentum. Unless you are a crypto legend (like Doge), anything without perceptiveness will ultimately perish.

At this point, some might think: "I don't want MEME coins to bear any execution risk".

This psychological battle began with NFT art collectors in 2020, and surprisingly, we have continued this narrative. My rebuttal is simple: things without execution risk completely depend on luck. Execution risk is the only risk worth taking, and if your position does not depend on execution, I can confidently say that in 999,999 out of 1 million cases, your performance will be inferior to those betting on execution (though I still wish you luck).

The Future of Social Currencies

To realize their true potential, MEME coins need to be promoted to social currencies in their final evolutionary stage. Tokens that create culture, cultivate deep community bonds, and integrate into real-world applications will define the new crypto era. Transitioning from stagnant speculative assets to dynamic participatory ecosystems is not just necessary but inevitable.

The question you need to consider now is: Who will lead this transformation?