Fueled by online communities and viral marketing, these tokens, often bearing the faces of internet memes, have exploded in popularity, leaving many to wonder: are meme coins a fleeting bubble, a legitimate investment opportunity, or a cultural phenomenon reshaping the financial landscape?
A recent panel discussion at Pheromones Party, a side event of Korea Blockchain Week 2024, tackled this question, bringing together experts from various corners of the crypto ecosystem to share their insights.
The Allure of Volatility and Community
Ruben Brons, representing Flow Traders, a global market-making firm, highlighted the perspective of institutional players. While acknowledging the significant trading volume generated by meme coins, he emphasized that institutions are primarily driven by stability and regulated products. With its inherent volatility, the meme coin landscape doesn’t yet offer the security and structure that traditional institutions seek.
However, the panel agreed that the volume is a testament to the power of meme coins. Sam, Chief Business Development Officer at 1inch, a leading DEX aggregator, argued that meme coins have successfully onboarded a new generation of crypto users. Their familiarity with internet culture and meme-driven humor makes them more receptive to this entry point into the crypto world.
Claire Dang, Head of Growth at a prominent Web3 educational platform, echoed this sentiment, emphasizing the cultural significance of meme coins. She drew parallels between meme coins and the early days of NFTs, where shared ownership of digital assets fostered a sense of community and belonging. This cultural relevance, she argued, is a key factor in the sustainability of certain meme coins like Dogecoin and Shiba Inu, which have successfully cultivated dedicated communities around their brands.
Sustainability and the Institutional Question
While acknowledging meme coins’ community-building potential, the panel also addressed concerns about their long-term viability. Kevin, Head of Growth at Monad Labs, pointed out that the meme coin space is prone to rapid boom-and-bust cycles. While some tokens might experience explosive growth, many fade into obscurity just as quickly.
The question of institutional adoption also sparked debate. While some panelists, like Sam, believe that institutional interest in meme coins is still a long way off, others, like Anndy Lian, see the influx of capital into the broader crypto market as a positive sign, suggesting that institutions might eventually warm up to the idea of meme coins.
Navigating the Meme Coin Landscape
The panel concluded with a resounding message of caution for investors. While meme coins present a unique opportunity for profit, they also carry significant risks. Claire stressed the importance of education and due diligence, urging investors to thoroughly research any project before investing.
Anndy Lian ended the panel by saying, “The future of memes will mature into a more established asset class, attracting institutional capital and driving further innovation. For now, they remain a playground for retail investors, driven by speculation and fleeting trends, too. Only time will tell. However, one thing is clear: meme coins have tapped into a powerful cultural current, and their impact on the crypto ecosystem is undeniable.”
The Pheromones Party is organized by MemeCore and co-hosted by OKX Wallet, OKX Ventures, and Shiba Inu.
Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.
Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.
An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.