Culture Coins" Could Eclipse Traditional Memecoins, Says Mechanism Capital Co-founder
Summary:
Mechanism Capital's Andrew Kang suggests that "culture coins", memecoins centered around elements like politics, brands, religion, and lifestyle, could prove more profitable than traditional memecoins. Kang cites Solana-based tokens, Boden and Doland Tremp, as examples of these culture coins. Yet, crypto industry commentators debate the impact of this new class of memecoins, often divided between viewing them as a "net positive" or potentially damaging speculative gambles. Nonetheless, memecoins have demonstrated themselves as the most lucrative sector within crypto for this year's opening quarter.
Andrew Kang, Co-founder of Mechanism Capital, anticipates that "culture coins" could yield greater profits than traditional memecoins which are mostly animal-themed or rely on uncomplicated humor. In a post on X dating April 7, Kang shared his thoughts about a new breed of memecoins that harness deep-rooted cultural elements like politics, brands, religion, lifestyle, claiming these could propagate more widely than renowned memecoins such as Dogecoin and Shiba Inu. "Cultural groups with sturdy values and identities are naturally predisposed to spread their convictions and publicly show their adoration for their lifestyle, making them inherently contagious", stated Kang. He explained these community ideologies could encompass politics, religion, consumer goods, sports, lifestyle or even a blend of all these.
Kang pointed out Boden (BODEN) and Doland Tremp (TREMP), both on the Solana platform, as recent illustrations of culture coins birthed from communities holding "anti-woke, anti-Biden, and right-wing views", which witnessed exponential growth. Since its conception on March 9, Boden skyrocketed over 700,000% and boasts a market cap of $473 million, ranking as the 191st-largest token in total value according to CoinGecko. The Donald Trump inspired coin, Tremp, also noted considerable growth since its inception on February 27 but fell short of gaining as much momentum as Boden. It carries a market cap of $73 million as per Birdeye data.
Branching out from politics, Kang proposed memecoins that derive their image from prosperous consumer brands, naming ZYN and MOUTAI as his firm’s stakes as examples, might gain from riding on the brand’s success in a "circular economy" of profits. "In comparison to animal coins, coins echoing consumer brands could take advantage of the lifestyle connected with the brand for additional contagion", Kang remarked.
However, crypto industry analysts continue to debate the aftereffects of memecoins on the sector. Despite most memecoins substantially profiting this present quarter, crypto pundits have varying viewpoints. BitMEX co-founder Arthur Hayes perceives memecoins as a “net positive” for their corresponding blockchain networks, while others view them as a hazardous speculative chaos that goes against blockchain technology's core principles.
Regardless of their ripple effect on the ecosystem, there's no denying memecoins' successful streak within the crypto sector in the year's first quarter. As per CoinGecko's market report, the top ten memecoins procured an average gain of 1,312.6% per holders in Q1 2024. CoinGecko’s analyst Lim Yu Qian highlights, "the profitability narrative for memecoins was 4.6 times higher than the next leading crypto performer, tokenized real-world assets and 33.3 times greater than layer 2 narratives which reported the least returns in this year’s first quarter".
Published At
4/8/2024 5:34:26 PM
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