From DOGE to GHIBLI, What Should the Next Level of Meme Coins Look Like?

Original Article Title: Social currencies are the future of memecoins
Original Article Author: LucaNetz, Pudgy Penguins NFT CEO
Original Article Translation: Deep Translation Agency

Editor's Note: The article focuses on the rise of Meme coins and their potential and limitations. The author believes that while Meme coins serve as a unique vehicle for cryptocurrency speculation, their development is hindered by a lack of innovation, stagnation, and reliance solely on hype. The article proposes that Meme coins should evolve into "social currencies" to drive the development of the crypto industry. Social currencies are the evolved form of Meme coins, with their success depending on execution rather than luck, and they may ultimately lead a new transformation in the crypto space.

The following is the original content (slightly reorganized for better readability):

The past 18 months in the cryptocurrency market have been like a rollercoaster, and in this chaos, we have witnessed the rise of Meme coins. While Meme coins are not a new phenomenon—in fact, they are one of the oldest forms of cryptocurrency—they have once again proven themselves to be the preferred vessel for participating in the most unique mechanism (speculation) of cryptocurrency.

Although Meme coins are fundamentally pure and almost artistic, they also have a dark side. No, the issue is not with insiders or small groups—this is a common ailment plaguing the entire cryptocurrency space. In my view, the real issue lies in a lack of effort, a failure to seize the moment, and people being stuck in a rut when it comes to building Meme coins. Perhaps I am too naive, but I refuse to accept that Meme coins end here—at least I hope they don't.

I deeply believe that the Trojan horse of cryptocurrency adoption is intellectual property (IP), as it can establish credibility in a field lacking a trust hierarchy, and Meme coins, like NFTs, are a form of IP. Meme coins have a huge opportunity to drive the development of the crypto industry by delving into the minds of ordinary people. However, they have not tapped into the full potential of transcending the native role of crypto; instead, they are stagnant in their path to exceed, lacking originality and being mundane. I am concerned that if they remain as they are, the drawbacks will outweigh the benefits. For this category to thrive, Meme coins must evolve, and I strongly believe that the direction of evolution is to become social currencies—tokens that go beyond lazy pumps and dumps, transforming into scalable, memorable, and beloved IPs.

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 on-chain meaningless images to become social currencies that can drive the development of the crypto industry, being productive and perceptive. I believe there are already tokens in this category. This article will discuss the current state of Meme coins, why successful projects should evolve into social currencies, and the impact of social currencies on the crypto space.

First of All, What Is a Social Currency?

A social currency is a tokenized asset that represents value within a specific community, often used to incentivize participation, reward contributions, and enhance brand or community loyalty. It operates similarly to traditional currency, but its value is derived from social interaction, reputation, and influence.

In simple terms, a social currency is a fundamentally sound Meme coin — it is progressive, insightful, focused on nurturing a community capable of sustaining a viral effect, rather than extracting value from short-lived hype.

Meme Coin vs. Social Currency

Meme coins do not create viral effects — they monetize viral effects, squeezing out popularity until it fades away. On the other hand, social currencies are insightful, actively driving their intellectual property through various media, collaborations, and integrations to consistently generate viral effects.

Typical Lifecycle of a Meme Coin:

· Idea → Token Launch → Community Cultivation → Community Advocacy Narrative → Narrative Demise → Community Dissolution

Lifecycle of a Social Currency:

· Idea → Token Launch → Community Cultivation → Community Advocacy Narrative → Brand Establishment → Brand Expansion → Ecosystem Building → Global Adoption and Recognition as Currency

In my view, all social currencies start as Meme coins initially, but with accumulated momentum, they must evolve into social currencies. The diagram below accurately illustrates this process.

I love this diagram because it shows that social currency is not meant to replace Meme coins but is their evolutionary form. To me, a social currency is a Meme coin with real value backing. Anyone can issue a Meme coin, but only the best can inject real value into it.

If you believe that liquid crypto assets will primarily belong to the retail asset class, then you are betting on Meme coins and their success. If you believe that institutional capital will eventually flow into altcoins, then you must expect fundamentals to prevail. Social currency combines the advantages of both — it has the retail appeal of Meme coins and the fun factor to attract institutional participation. In my opinion, social currency integrates the essence of Meme coins and utility tokens.

When dissecting the flaws of Meme coins, it is evident that they could be more potent, but we have allowed societal consensus to convince us that "Meme coins are supposed to be useless, it has always been that way." I personally refuse to accept this as the future standard for this field. To understand my frustration, we must first break down the current factors constraining Meme coins and how social currencies address these issues.

Flaws of Meme Coins

· Meme coins are prone to rug pulls: momentum fades, leading to a loss of driving force.

· Stigmatization: 99% of speculators incur losses as meme coins are not intended for long-term holding.

· PvP Mode: Designed for quick gains, turning into a game of musical chairs among existing holders.

· Lack of infrastructure to attract new users.

· Apart from a speculative narrative, meme coins lack genuine faith support — they lack fundamentals.

· Success often relies on fantasy and luck.

Advantages of Social Tokens

· Perceptiveness: Ability to both create and capture trends, maintaining sustained relevance.

· New narrative: Combining the longevity of meme coins with genuine fundamental growth support, suitable for long-term holding.

· PvE Mode: Aimed at driving industry development and attracting new users.

· Continuously creating demand through content strategies, brand partnerships, and IP growth.

· Building real-world assets beyond the industry to enhance holder identification and belief — establishing genuine faith foundations.

· Success is not reliant on luck or narrative but is supported by genuine fundamentals.

Perceptiveness vs. Non-Perceptiveness

For traders and investors, the core difference between meme coins and social tokens lies in perceptiveness — the ability to maintain continuous relevance. Social tokens possess perceptiveness, unlike meme coins, which is a key focus for traders. Perceptiveness = relevance = attention = potential energy. Unless you are a crypto legend (such as DOGE), anything non-perceptive will eventually fade away.

By this point, some may think, "I don't want meme coins to carry any execution risk."

This psychological warfare began with 2020 NFT art collectors, and I am surprised we have continued this narrative. My counterargument is simple: anything without execution risk solely relies on luck. Execution risk is the only risk worth taking. If your position does not rely on execution, I can say with 999,999 out of 1 million certainties that your performance will be inferior to those betting on execution (although I still wish you good luck).

The Future of Social Tokens

To achieve its true potential, a Meme coin needs to evolve into a social currency in its final chapter. Tokens that create culture, nurture deep community ties, and integrate real-world utility will define the new crypto era. Shifting from a stagnant speculative asset to a dynamic participatory ecosystem is not only necessary but also inevitable.

Now the question you need to ponder is: Who will lead this transformation?

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