From DOGE to GHIBLI, should Meme coins evolve into "social currency"?

Author: LucaNetz, Pudgy Penguins NFT CEO

Compiled by: Rhythm Little Deep

Editor's Note: The article focuses on the rise of Meme coins and their potential and limitations. The author believes that while Meme coins are a unique vehicle for cryptocurrency speculation, their development is hindered by a lack of innovation, stagnation, and a reliance on hype. The article suggests that Meme coins should evolve into "social currencies" to promote the development of the crypto industry. Social currency is the evolved form of Meme coins, and its success relies on execution rather than luck, which may ultimately lead to a new transformation in the crypto space.

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

The cryptocurrency market over the past 18 months has been like a roller coaster, and in 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 cryptocurrency — they have once again proven themselves to be the preferred vehicle for engaging in the most unique mechanism of cryptocurrency (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 cryptocurrency space. In my opinion, the real issue is the lack of effort, 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 should stop here – at least I hope not.

I firmly believe that the Trojan horse for the proliferation of cryptocurrency is intellectual property (IP), as it can establish credibility in areas lacking a trust ladder. Like NFTs, Meme coins are also a form of IP. Meme coins have tremendous opportunities to drive the development of the crypto industry by penetrating the minds of ordinary people. However, they have not broken through the potential boundaries of their native role in crypto, but instead have stagnated on the path of transcendence, lacking originality and being mediocre. 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 kind of token will transcend lazy pump-and-dump schemes and transform into scalable, memorable, and much-loved 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-chain and evolve into social currencies that can drive the development of the crypto industry, possessing productivity and perceptiveness. I believe that existing tokens 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 space.

First, 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. It operates similarly to traditional currency, but its value derives from social interactions, reputation, and influence.

In simple terms, social currency is a fundamental Meme coin - it is progressive, perceptive, and focuses on nurturing a community that can continuously create viral effects, rather than extracting value from short-lived hype.

Meme Coin vs Social Currency

Meme coins do not create viral effects—they monetize the viral effect, squeezing the hype until it fades. Social currencies, on the other hand, have perception and can actively promote their IP through various media, collaborations, and integrations, continuously generating viral effects.

Typical Life Cycle of Meme Coins:

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

The Lifecycle of Social Currency:

· Creativity → Token Issuance → Community Cultivation → Community Support Narrative → Brand Creation → Brand Expansion → Ecological Construction → Currency for Global Adoption and Recognition

In my opinion, all social currencies 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 to evolve from them. For me, social currency is a Meme coin that has real value backing it. 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 Meme coins and their success. 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 the interesting characteristics sufficient to attract institutional participation. In my view, social currencies blend the essence of Meme coins and utility tokens.

! [From DOGE to GHIBLI, should Meme Coin evolve into a "social currency"?] ](https://img.gateio.im/social/moments-922e7c0873d760a77aa114a48ebaf590)

When analyzing the shortcomings of Meme coins, it is clear that they could have more potential, but we allow social consensus to persuade ourselves that "Meme coins should be ineffective, as it has always been." I personally refuse to accept this as the future norm in the field. To understand my frustration, one must first break down the current factors restricting Meme coins and how social currencies can resolve these issues.

The flaws of Meme coins

· Stagnation: The trend fades and loses momentum.

· Stigmatization: 99% of speculators lose money, not holding long-term assets

· PvP Mode: Designed for short-term flow rate, it has become a game of musical chairs for existing users.

· Lack of infrastructure to attract new users

· No real faith support other than虚幻叙事——no fundamentals

Success often relies on fantasy and luck.

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 cryptocurrency industry and attracting new users

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

· Build real things that transcend the industry, enhancing the holders' recognition and belief—there is a real foundation of faith.

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

Perceptive vs Non-Perceptive

For traders and investors, the core difference between Meme coins and social currencies lies in perception—the ability to maintain relevance. Social currencies have 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.

At this point, some may think: "I don't want Meme coins to bear any execution risk."

This psychological battle began with NFT art collectors in 2020, and I am surprised that we have continued this narrative. My rebuttal is simple: things without execution risk rely entirely on luck. Execution risk is the only risk worth taking; if your position does not depend on execution ability, I can say with absolute certainty that in 999,999 out of 1,000,000 cases, your performance will be worse than those who bet on execution ability (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 ties, 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?