Crypto Corner: Meme Coins

It has been referred to as the slap that was heard around the world… we all saw it, whether we wanted to or not. And from that embarrassing moment in human history, the birth of a new meme coin… the Will Smith Inu coin… and the coin was an immediate hit, experiencing a whopping 83,000% growth within a relatively short period of time. It is funny, but it’s funny with a twist…

Had you been in the meme coin space, recognized the opportunity with Will Smith Inu, got in, and got out, a $5,000 investment would have profited you a $20,000 payout… as it did for one amateur investor from New York who saw the writing on the wall and got in… all within the span of a few days. There has even been a meme coin called Space Kim, which satirizes North Korean leader Kim Jong Un… there may be a meme coin out there right now that features your favorite celebrity or political figure.

But… before you see dollar signs and stars in your eyes, we must understand what the meme coin space is and what it isn’t, because it’s not somewhere to be for just anyone. In fact… if we had to classify it, it would almost be like a pop culture, tongue-in-cheek kind of day trading. For all those major players in the fiat space calling meme coins risky investments without any tangible purpose, they are almost correct, but so far off base… they may as well be on the moon.

What’s Going On Here?

Meme coins are cryptocurrency spawned from and attached to internet jokes or viral moments. They pop in and out of existence along with the whims of the masses. At least, the vast majority do. Some stick with us for one reason or another, like Dogecoin and Shiba Inu. Why isn’t as important as understanding that this is so, because meme coins aren’t just for fun, they have a much deeper meaning within popular culture… and that deeper meaning is what brings their value.

What’s particularly interesting about the space is the fervor with which its misunderstood and disliked… let us put it this way… David Hsiao, Chief Executive of Block Journal (a crypto magazine) has called meme coins a “zero-sum game”, adding “If somebody is getting rich, a lot of other people are losing money.” We would like to hold this statement up as an example of a failure to understand the meme coin space. Or, if he’s bluffing, he’s doing a great job.

We don’t think the statement has any relevance… because honestly, how is that different from fiat currency? No… to understand this space, we must understand the draw of the space, of the sheer monkey paw approach it takes. And, we must understand that the types attracted to the space are playing an entirely different game from what we’re used to when we think of money. We tend to take our money too seriously… so seriously that we won’t let it go, find new ways to interact with it to make more. Not in this space.

For the disenfranchised pop culture addict, or someone with zero interest in being an “influencer” or part of “the fold”, this is the space to be. It’s wild, it’s fast, it’s like diving into a mosh pit at a metal concert. You’ll get swept away… in the most wonderful way possible. If that sounds horrible to you, it may not be the space for you. In the meme coin space, the fact that it is a joke is what makes it so wonderful.

In the space, you must be a “part” of the joke to understand the popular references and the deified characters. It could be likened to gaming pop culture… leveraging this knowledge, along with the knowledge of how to create a token, one can make money while flying under the radar. It’s those coming into the space with a fiat, overly individualistic mindset that get burned here. Those who don’t know how to operate from the space of the cosmic joke… and turn it into money.

The heart in the meme coin community is truly what makes it shine. It’s more than just investing, it’s a place where pop culture and the masses can meet and try their hand at something larger than themselves… together… moving markets. But it’s even more than just being a part of a community… it’s about waging little wars, taking back little bits of power, all with a meme or a joke.

From Joke To Serious Money

The space has become its own subculture, with the key to the game being the knowing that it’s a game and pushing that to the limit. Watching this space can provide valuable data points within the larger picture of the crypto market, and even the market at large. It’s not just about money, not by a long shot. Anyone not understanding this isn’t understanding what they’re looking at.

As long as a meme coin is redeemable in some way for a recognized, legit currency, the legitimacy of the actual coins remain irrelevant. This is where an “old money” understanding of power structures might struggle when looking inside from their perspective. As long as the value is transferrable, the movement of the goal that the coin represents will live on… a bit like the idea of reincarnation.

The momentum can flow from Doge to Shiba Inu to Will Smith Inu… or whatever may come next, and it doesn’t matter. It’s a single organism, moving as one. The primary generation attracted to the space grew up playing games, they don’t need a dollar to make a dollar. They need a highly mobile, immediately recognizable symbol of unification. And that’s what the meme coin offers. As far as the community is concerned, if you don’t get it… good. You aren’t meant to.

Armed with this knowledge, we now know whether the meme coin space is worthless hype or a serious subset of the crypto space… it’s both. It’s the joke that pays, a place where knowledge of certain subcultures gives you a financial edge, it’s influencing from the bottom in a sort of financial guerrilla warfare… a tinge of subversion with the community of pop culture as a binder.

Alternatively, it could be used by institutions or very wealthy persons with lots of influence to cause trouble, or to help them help themselves financially. We saw this when one particularly well-known billionaire within the crypto space appeared on SNL last year… and took the opportunity to make comments about a meme coin that caused massive movement in the market. Is it playing dirty? Maybe, or maybe that’s just the game…

We can see scenarios where those at both ends of the spectrum financially, wealthy and regular guy, are able to use meme coins as a base of power. This is to understand the space. On the flip side, anyone going into the space without this understanding may falter… but don’t worry, that’s why we’re here. As crypto becomes more accessible and prolific, we’ll be here, educating you and keeping you in the know. Come back next week, we’ll keep lining them up and knocking them out.