Pudgy Penguins NFT CEO: Social token forms are the future of memecoins

Author: LucaNetz, Pudgy Penguins NFT CEO Compiled by: Rhythm

Editor’s note: The article focuses on the rise of meme coins and their potential and limitations. The authors argue that although the Meme coin is a unique vehicle for cryptocurrency speculation, its development is limited by a lack of innovation, stagnation, and a pure reliance on hype. The article proposes that meme coins should evolve into “social currency” to promote the development of the crypto industry, and social currency is the evolution of meme coins, whose success depends on execution rather than luck, and may eventually lead to new changes in the crypto field. The following is the original text (the original content has been edited for ease of reading): The cryptocurrency market has been on a rollercoaster ride over the past 18 months, and in the midst of this chaos, we have witnessed the rise of meme coins. While meme coins are not new – in fact, they are one of the oldest forms of cryptocurrency – they have once again proven themselves to be the vehicle of choice for participating in the most unique mechanisms of cryptocurrency (speculation). Although meme coins are pure and almost artistic in nature, they also have a dark side. No, the problem isn’t with insiders or small groups – it’s a common problem that plagues the entire crypto space. In my opinion, the real problem lies in the lack of effort, the failure to seize the timing, and the complacency of people building meme coins. Maybe I’m naïve, but I refuse to accept that meme coins stop there – at least I hope not. I am convinced that the Trojan horse for the popularity of cryptocurrencies is intellectual property (IP) because it builds credibility in areas where there is a lack of trust ladder, and meme coins, like NFTs, are a form of IP. Meme coins have a huge opportunity to advance the crypto industry by reaching deep into the minds of ordinary people. However, instead of pushing the boundaries of the potential of crypto-native characters, they are stagnant, lacking originality, and mediocre on the road to transcendence. I fear 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 evolution is to become a social currency – a token that will move beyond lazy smashing to a scalable, memorable, and beloved IP. My proposition is not to replace meme coins with social currency, but to add a final stage to its growth roadmap. Meme coins must graduate from meaningless images on-chain and evolve into a productive and perceptual social currency that drives the crypto industry. I think there are already tokens that fall into this category. In this article, we’ll explore 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 social currency? Social currency is a tokenized asset that represents value within a specific community and is often used to incentivize participation, reward contributions, and strengthen brand or community loyalty. It operates like traditional currency, but its value is derived from social interaction, reputation, and influence. In layman’s terms, social currency is a meme coin with fundamentals – it’s progressive, sentient, and focused on nurturing communities that can continue to create viral effects, rather than squeezing value out of short-lived hype. Meme Coins vs Social Currencies Meme coins don’t create a viral effect – they monetize the viral effect and drain the heat until it subsides. Social currency, on the other hand, has the ability to actively drive its IP through multiple mediums, collaborations, and integrations, and continues to generate viral effects. Typical life cycle of a meme coin: · Creative → Token Issuance → Community Nurturing → Community Embracing Narrative → Narrative Demise → Community Demise Life Cycle of Social Currency: · Creative → token issuance→ community nurturing→ community embracing narrative → brand creation→ brand expansion→ ecosystem building→ global adoption and recognition of currencies In my opinion, all social currencies are originally meme coins, but as potential energy accumulates, they must evolve into social currencies. The diagram below illustrates exactly this process.

I love this diagram because it shows that social currency is not meant to replace memes, but rather to evolve. For me, a social currency is a meme coin backed by real value. Anyone can issue meme coins, but only the best can inject real value into them. If you think that liquid crypto assets will fall predominantly into the retail asset class, then what you believe in is the Meme coin and its success. If you think that institutional capital will eventually flow into altcoins, then you have to expect fundamentals to dominate. Social currencies have the best of both worlds – with the retail appeal of meme coins and the fun of engaging institutions. In my opinion, social currency is a fusion of the best of meme coins and utility tokens. When dissecting the flaws of meme coins, it is clear that they could have more potential, but we let the social consensus convince us that “meme coins should do nothing, always”. I personally refuse to accept this as the future norm in the field. To understand my frustrations, we need to debunk the current constraints on meme coins and how social currencies can resolve them. Defects of Meme Coin · Stagnation: Losing momentum when the trend fades · Stigma: 99% of speculators lose money, non-long-term holdings · PvP mode: Designed for short-term flow rate, reduced to a chair-grabbing game for existing users · Lack of infrastructure to attract new users · No real beliefs other than illusory narratives – no fundamentals · Success often depends on fantasy and luck Advantages of Social Currency · Perception: Ability to create and capture trends to maintain continuous relevance · New Narrative: Combining the Durability of a Meme Coin with the True Fundamentals Supporting Growth, Suitable for Long-Term Holding · PvE Mode: Designed to Boost the Crypto Industry and Attract New Users · Continued demand creation through content planning, brand partnerships, and IP growth · Construct real things that transcend the industry, and strengthen the identity and belief of holders - there is a real belief foundation · Success doesn’t depend on luck or narrative, it’s backed up by real fundamentals Perception vs. No Perception For traders and investors, the core difference between meme coins and social currencies is perception – the ability to maintain relevance over time. Social currencies are sentient while meme coins are not, which is the key that traders should focus on. Perception = Correlation = Attention = Potential Energy. Unless you’re a crypto legend (like DOGE), anything that isn’t sentient will eventually die. Reading this, one might think, “I don’t want meme coins to take any execution risk”. This psychological warfare began in 2020 with NFT art collectors, and I’m surprised that we continued this narrative. My rebuttal is simple: everything that has no execution risk depends entirely on luck. Execution risk is the only risk worth taking, and if your position doesn’t rely on execution, I can say with absolute certainty that at 999,999/1 million times, you will underperform someone who bets on execution (although I still wish you good luck). The future of social currency To realize their true potential, Meme coins need to evolve into social currencies in the final chapter of their evolution. Tokens that create culture, foster deep community bonds, and integrate into real-world applications will define the new era of cryptocurrency. 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?