Original Author: LucaNetz, Pudgy Penguins Non-Fungible Token CEO
Original Translation: BlockBeats Deep
Editor's Note: The article focuses on the rise and potential limitations of meme coins. The author believes that while meme coins are a unique carrier of cryptocurrency speculation mechanisms, their development is limited by 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 the evolved form of meme coins, whose success depends on execution rather than luck, and may ultimately lead to new changes in the crypto field.
Following is the original content (slightly edited for readability):
The cryptocurrency market over the past 18 months has been like a roller coaster, and in this chaos, 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).
Although meme coins are inherently pure and almost artistic, 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 field. In my view, the real problem lies in the lack of effort, failure to seize opportunities, and people's conservative 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 a huge opportunity 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 stagnating, lacking originality, and becoming mediocre on the path to transcendence. I worry that if the status quo is maintained, they will do more harm than good. 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 pumping and dumping, transforming into scalable, memorable, and beloved IPs.
My argument 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, perceptive, and focused 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 are perceptive and can actively promote their IP through multiple media, collaborations, and integrations, continuously generating viral effects.
Typical lifecycle of meme coins:
Idea → Token Issuance → Community Cultivation → Community Advocacy Narrative → Narrative Dissipation → Community Dissipation
Lifecycle 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 evolved form. For 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 mainly 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 expect fundamentals to dominate. Social currencies combine the advantages of both - having the retail appeal of meme coins and the interestingness 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 break down 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 speculators 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 faith support beyond illusory narratives - no fundamentals
Success often depends on fantasy and luck
Advantages of Social Currencies
Perceptiveness: Can both create and capture trends, maintaining continuous relevance
New Narrative: Combines the persistence of meme coins with real fundamentals supporting growth, suitable for long-term holding
PvE Mode: Aimed at promoting crypto industry development, attracting new users
Continuously create demand through content plans, brand collaborations, and IP growth
Build real things beyond the industry, enhancing holder identity and belief - existing with a real faith foundation
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 warfare began with NFT art collectors in 2020, and surprisingly, we have continued this narrative. My rebuttal is simple: things with no 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 999,999/1 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 chapter. 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 participating ecosystems is not only necessary but inevitable.
The question you need to consider now is: Who will lead this transformation?
