Dr. Han's Breakup Meme Coin Evaluation Dilemma: Using the Wrong Framework, Even the Best Assets Seem Valueless

Gate founder Dr. Han’s recent words in the AMA hit a core misconception in the crypto industry: the frameworks we use to evaluate traditional assets are fundamentally unsuitable for measuring Meme coins and the entire crypto ecosystem. This is not simply a difference of opinion but a methodological issue involving how the industry defines and understands new phenomena.

Framework Misalignment: Why Meme Coins Are Always Undervalued

Limitations of Traditional Evaluation Logic

Dr. Han points out that a common misconception is to evaluate Meme coins using traditional asset or stock valuation frameworks. This approach is inherently flawed. What standards should be used? He provides a convincing example: early attempts to understand Bitcoin with traditional stock logic—similarly ineffective.

This comparison is crucial. Bitcoin is now widely recognized as an asset, but in its early days, using “corporate profitability,” “cash flow,” or “price-to-earnings ratio” to evaluate it would have led to the conclusion that it was “worthless.” Applying the same logic to Meme coins yields only negative results.

Dr. Han’s Practical Approach

He mentions he wouldn’t buy Meme coins as investment targets but does trade them actively on platforms like Gate Alpha and Perp DEX. This may seem contradictory but actually reflects an important distinction:

• Investing: Requires belief in long-term value, suitable for traditional evaluation frameworks
• Trading: Focuses on market psychology and behavior, understanding user demand

Using trading to understand user behavior and market psychology is the real way to assess Meme coin value. In other words, the value of Meme coins isn’t “how much they should be worth,” but “why the market is willing to pay for them.”

Where Is the True Value of Meme Coins?

Emotions, Consensus, and Experimental Attributes

Dr. Han believes Meme coins are not inherently “valueless” but should be understood from the right perspective, considering several dimensions they carry:

• Emotional Value: Meme coins often embody the collective emotions and cultural identity of communities, which in itself has market trading value
• Consensus Value: The consensus formed among participants makes Meme coins a form of social currency, circulating within specific communities
• Experimental Value: Meme coins serve as testing grounds for crypto innovation, where many new mechanisms and gameplay emerge

These dimensions are absent or difficult to quantify in traditional finance. But in the crypto world, they are real market forces.

Unique Value Cases of Decentralized Applications

Dr. Han also mentions that some decentralized applications have demonstrated unique value in specific scenarios. For example, prediction markets have shown high accuracy in events like the US presidential election, even outperforming traditional institutional models at times.

What does this imply? Decentralized market mechanisms can sometimes outperform traditional finance in certain scenarios. This is not just theoretical but supported by actual data.

A Broader Context: Redefining Asset Boundaries

According to recent news, Dr. Han also discussed a more macro perspective in the same AMA. He believes the real inflection point for the crypto industry isn’t a market rebound but the redefinition of financial boundaries. TradFi is becoming the core gateway connecting traditional finance with Web3.

In this broader context, the question of Meme coin value is no longer isolated. Bitcoin is transitioning from a speculative asset to a portfolio digital asset, a process that requires an upgrade of the entire evaluation system. As part of the crypto ecosystem, Meme coin valuation recognition is also a component of this major shift.

Summary

The core of Dr. Han’s argument is a methodological issue: you cannot evaluate new phenomena with old frameworks. This offers valuable insight into understanding the entire crypto industry.

Key points:

• Framework upgrade is essential: Traditional asset evaluation systems are unsuitable for Meme coins; new understanding frameworks must be established
• Value is multi-dimensional: Meme coin value lies in emotions, consensus, and experimental attributes, not traditional fundamentals
• Practice over theory: Understanding markets through trading and usage is more effective than mere valuation judgments
• This is a necessary path: Redefining asset boundaries is essential for crypto to mainstream, and Meme coin valuation recognition is part of this process

From another perspective, if we always dismiss Meme coins by asking “how much should they be worth,” just like early Bitcoin being dismissed by stock logic, we are essentially refusing to understand new phenomena with outdated frameworks. True insight lies in recognizing that frameworks themselves need to evolve.