Editor’s Note: The article focuses on the rise of Meme coins and their potential and limitations. The author believes that although Meme coins are a unique vehicle for the speculation mechanism of Crypto Assets, their development is limited by a lack of innovation, stagnation, and flaws that purely rely on hype. The article suggests that Meme coins should evolve into "social currencies" to drive the development of the Crypto industry, with social currencies being the evolved form of Meme coins, whose success relies on execution rather than luck, and may ultimately lead to new transformations in the field of Crypto.

The following is the original content (for ease of reading and understanding, the original content has been edited):

The cryptocurrency market has been like a roller coaster for the past 18 months, and amidst 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 crypto assets—they have once again proven to be the preferred vehicle for participating in the most unique mechanism of crypto assets (speculation).

Although Meme coins are essentially pure and almost artistic, they also have a dark side. No, the problem does not lie with insiders or small groups - this is a common ailment that plagues the entire Crypto Assets field. In my opinion, the real issue is the lack of effort, the failure to seize opportunities, and people's complacency in building Meme coins. Perhaps I am too naive, but I refuse to accept that Meme coins stop here - at least I hope that's not the case.

I firmly believe that the Trojan horse for the popularization of Crypto Assets is intellectual property (IP), as it can establish credibility in areas lacking a trust ladder. Meme coins, like NFTs, are a form of IP. Meme coins have a tremendous opportunity to drive the development of the encryption industry by penetrating the minds of ordinary people. However, they have not broken through the potential boundaries of their native roles in encryption, and instead, they stagnate on the path of transcendence, lacking originality and being mundane. I worry that if the status quo is maintained, they will do more harm than good. For this category to thrive, Meme coins must evolve, and I firmly believe that the direction of evolution is to become social currency—this type of token will transcend lazy pump-and-dump schemes and transform into scalable, memorable, and beloved IP.

My assertion is not to replace Meme coins with social currencies, but to add a final stage to their growth roadmap. Meme coins must graduate from being meaningless images on the chain and evolve into social currencies that can drive the development of the Crypto Assets industry, possessing productivity and perception. I believe there are existing tokens that 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 Assets field.

First of all, what is social currency?

Social currency is a tokenized asset that represents value within a specific community, typically used to incentivize participation, reward contributions, and enhance brand or community loyalty. Its operation is similar to traditional currency, but its value derives from social interactions, reputation, and influence.

In simple terms, social currency is a Meme coin with fundamentals—it is progressive, perceptive, and focused on nurturing a community that can sustainably create viral effects, rather than extracting value from fleeting speculation.

Meme coin vs Social Crypto Assets

Meme coins do not create viral effects—they monetize the viral effects, squeezing the heat until it dissipates. Social coins, on the other hand, have perception and can actively promote their IP through various media, collaboration, and integration, continuously generating viral effects.

Typical lifecycle of a Meme coin:

· Creativity → Token Issuance → Community Cultivation → Community Support Narrative → Narrative Extinction → Community Extinction

The Lifecycle of Social Currency:

· Creativity → Token Issuance → Community Cultivation → Community Advocacy Narrative → Brand Creation → Brand Expansion → Ecosystem Development → Global Adoption and Recognition of Currency

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

I love this image because it shows that social currency is not meant to replace Meme coins, but rather is their evolutionary form. For me, social currency is a Meme coin that has real value support. Anyone can issue a Meme coin, but only the best can inject real value into it.

If you believe that liquidity crypto assets will primarily belong to the retail asset category, then you are believing in the success of Meme coins. If you think institutional capital will eventually flow into altcoins, then you must expect fundamentals to dominate. Social currencies combine the advantages of both – they have the retail appeal of Meme coins and also possess the interest sufficient to attract institutional participation. In my view, social currencies merge the essence of Meme coins and utility tokens.

When analyzing the flaws of Meme coins, it is clear that they could have more potential, but we let social consensus persuade ourselves that "Meme coins are supposed to be useless, and that's how it has always been." I personally refuse to accept this as the future guideline for the field. To understand my frustration, one must first break down the current constraints on Meme coins and how social currencies can address these issues.

The Defects of Meme Coin

· Stagnation: The trend fades and loses momentum

· Stigmatization: 99% of speculators lose money, not holding assets for the long term.

· PvP Mode: Designed for short-term flow, it has become a chair-snatching game for existing users.

· Lack of infrastructure to attract new users

· No real faith support other than virtual narrative - no fundamentals

Success often relies on fantasy and luck.

The Advantages of Social Currency

· Perception: Able to create trends and capture trends, maintaining continuous relevance.

· New narrative: Combining the durability of Meme coins with real fundamentals that support growth, suitable for long-term holding.

· PvE Mode: Aimed at promoting the development of the encryption industry and attracting new users

· Continuously create demand through content planning, brand collaboration, and IP growth.

· Build real things that transcend the industry, enhancing holder recognition and belief — based on real faith.

Success does not rely on luck or narrative, but is supported by real fundamentals.

Perception vs Non-Perception

For traders and investors, the core difference between Meme coins and social currencies lies in perception - the ability to maintain relevance over time. Social currencies possess perception while Meme coins do not, which is the key that traders should focus on. Perception = relevance = attention = potential. Unless you are a Crypto legend (like DOGE), anything without perception will eventually fade away.

Reading to this point, some may think: "I do not want Meme coin to bear any execution risk."

This psychological battle began in 2020 with NFT art collectors, and I am surprised that we have continued this narrative. My rebuttal is simple: things that have no execution risk entirely depend on luck. Execution risk is the only risk worth taking; if your positions do not rely on execution ability, I can say with absolute certainty that, in 999,999 out of 1,000,000 cases, your performance will lag behind those who bet on execution ability (though I still wish you good luck).

The Future of Social Currency

To realize their true potential, Meme coins need to evolve into social currency in the final chapter of their evolution. Tokens that create culture, foster deep community ties, and integrate into real-world applications will define a new era of Crypto Assets. The shift from stagnant speculative assets to a dynamic participatory ecosystem is not only necessary but also inevitable.

The question you need to think about now is: who will lead this transformation?

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