The Attention Economy and the Rise of Meme Coins
In today’s newsletter I want to share some interesting stuff I've been digging into lately—meme coins. They're these quirky, internet-inspired cryptocurrencies that have taken the crypto world by storm. But before we dive into the specifics, let’s roll back a bit and talk about memes themselves.
A Brief History of Memes
The word "meme" was first coined by British biologist Richard Dawkins in his 1976 book "The Selfish Gene." Dawkins described a meme as an idea, behavior, or style that spreads from person to person within a culture, much like genes propagate in biological evolution.
Before the internet, memes were more about cultural phenomena like catchphrases, fashion trends, and urban legends, spread through word of mouth, books, and other traditional media. Remember those urban legends that everyone seemed to know despite no one being able to pinpoint their origin? Those were essentially early memes.
With the advent of the internet, especially in the early days, memes started to become text-based and spread through emails and forums. For instance, "All Your Base Are Belong to Us" from a poorly translated Japanese video game became a viral sensation in the early 2000s.
Then came Web 2.0 and social media, which turbocharged the meme culture. Platforms like Reddit, 4chan, Facebook, and Twitter became breeding grounds for image macros—pictures with humorous text. Think "LOLcats" or the classic "Rickroll," where you'd get tricked into clicking a link to Rick Astley's "Never Gonna Give You Up."
By the 2010s, memes exploded, thanks to smartphones and social media. They evolved into videos, GIFs, and more complex references, with platforms like Instagram, TikTok, and Vine playing huge roles. Remember "Harlem Shake" or "Doge"? Yeah, those were the days.
Today, memes are a staple of online communication. They comment on current events, politics, and social issues, and even influence marketing and advertising strategies. It’s fascinating how something that started as simple jokes has become such an integral part of our digital lives.
Attention economy: what’s that?
Imagine you're at a huge party with tons of people, each trying to tell their own stories or show off their talents. In this crowded space, getting someone to stop and listen to you is tough because there's just so much going on. That's pretty much what the internet is like nowadays—it's a massive party with endless information flying around.
Now, this idea of everyone trying to grab your attention because it's so limited is called the "attention economy." In a world overflowing with information, getting and keeping someone's attention becomes super valuable. Platforms like TikTok, YouTube, Instagram, and Twitter, and content creators on these platforms, are constantly coming up with engaging and sometimes sensational (read “outrageous” 😅) stuff just to make you look their way.
Enter Meme Coins
Now, let's talk about meme coins. Memes are these catchy, funny, or clever images and videos that spread like wildfire on the internet. They're perfect for grabbing attention quickly because they're easy to understand and share. So, in the crypto world, memes were initially strategically used to make a project go viral, drawing a lot of attention and potentially boosting its value.
Meme coins have evolved becoming actual cryptocurrencies inspired by the same internet culture that gave us all those hilarious and sometimes profound memes. The most famous meme coin is Dogecoin, which was created back in 2013 by software engineers Billy Markus and Jackson Palmer. They literally made it as a joke, using the Shiba Inu dog meme as its mascot. But here’s the twist—what started as a joke caught on like wildfire, thanks to its fun and friendly community. Believe it or not, Dogecoin is a proof of work coin (it can be mined) with a wide user base and over 10 years of history.
Dogecoin’s price surged dramatically in early 2021, especially after endorsements from celebrities like Elon Musk. At its peak, Dogecoin hit an all-time high of $0.74. It’s still around and actively traded, proving that a joke can turn into a serious financial asset.
Another well known meme coin is Shiba Inu (SHIB). It’s one of the first Ethereum meme coin that attracted lots of liquidity. 50% of the supply was sent to Vitalik’s wallet. Often referred to as the "Dogecoin Killer," Shiba Inu is another meme coin featuring the Shiba Inu dog. Launched in August 2020, SHIB has created a robust ecosystem, including a decentralised exchange called ShibaSwap.
Launched April 2023, PepeCoin (PEP) is a pop culture meme coin that brought liquidity back into memes. Inspired by the internet meme "Pepe the Frog," PepeCoin focuses on creating a community-driven ecosystem that celebrates internet culture. Ethereum gas fees went up heavily after the launch.
Waifu (WAIFU) meme coin is based on the anime and manga culture term "waifu," representing fictional characters people have affection for. It taps into the vast anime fandom for its community and marketing.
Solana, known for its fast transactions and low fees, has become a popular platform for launching meme coins. Here are a few notable ones:
Bonk (BONK) launched in 2022, Bonk quickly gained traction within the Solana community. It was created to bring excitement and fun, much like Dogecoin. Bonk saw a significant surge in its early days, driven by community enthusiasm and social media buzz. It quickly became one of the most talked-about projects on Solana.
Slothana (SLOTH) meme coin leverages the adorable sloth meme and has seen substantial interest during its presale (raised over $500,000 within a few hours).
WIF - also known as DogWifHat, launched in Nov 2023, when meme mania started. Was adopted as the meme token by a number of Solana regulars, supported by market maker Wintermute and launched on Binance and Robinhood. It has a large number of holders, with a good community that raised money to put WIF on Vegas sphere.
Meme coins are usually inspired from anything happening around us, from cute animals, to political ones like TrumpCoin and PutinCoin, and celebrity-themed ones such as KanyeCoin and Floki Inu, named after Elon Musk's dog. They’ve evolved from simple jokes to significant market players, each with varying degrees of success and longevity. While some, like Dogecoin and Shiba Inu, have established strong communities and lasting market presence, others like PepeCoin and TrumpCoin have faded due to their niche appeal or polarising nature.
Meme Coin Drama
Recently, Caitlyn Jenner launched her own meme coin, JENNER, on Pump.fun, a platform that facilitates the creation and trading of meme coins. Initially, the coin saw impressive trading volumes, over $100 million within 24 hours. However, things quickly turned sour.
Jenner accused her promoter, Sahil Arora, of scamming her and going silent after showing a few wire transfers. This controversy led to a significant drop in the coin's value, plummeting by 26% from its all-time high. The drama unfolded publicly on social media, adding fuel to the fire. Read more here.
What’s Pump.fun?
Pump.fun is essentially a platform that helps people create, promote, and trade meme coins on Solana. It’s designed to be user-friendly, making it accessible even to those who aren’t tech-savvy. The platform offers tools for marketing and promotion, including partnerships with influencers and celebrities to boost visibility.
Despite its innovative approach, Pump.fun has seen its share of controversy, especially with the Caitlyn Jenner incident. This highlights the risks involved in celebrity-endorsed projects and the volatile nature of meme coins.
I thought why not go a step further and show you how easy it is to create a meme coin on pump.fun. I went ahead and created a Move the Needle (MTN) meme coin on Solana for the sole purpose of research and education. Enjoy 🙃
And what do you know, just minutes from launching, trading bots started buying 😂
Should We Care About Meme Coins?
I don’t know, maybe not if you’re not really into memes. Meme coins are a fascinating blend of internet culture and financial speculation. They can offer significant returns due to their viral potential and strong community engagement. However, they are also highly volatile and can be risky investments. It’s essential to be careful, do thorough research, and never invest more than you can afford to lose. You can use DexScreener, CoinGecko and Coinmarketcap for your research.
In essence, meme coins are more than just jokes—they reflect the dynamic and often unpredictable nature of internet culture. Whether you see them as a fun way to engage with the crypto world or a speculative investment, their impact on the market and digital culture is undeniable. That doesn't mean they’re not risky or full of scams and plagued by rapid depreciation in value. Practice diligence and caution!
So, next time you come across a meme coin, remember it's part of a broader narrative of how memes have evolved from simple jokes to powerful digital assets. And like any good meme, it’s all about timing, context, and sometimes, just a bit of luck.
Until next time, happy Meme-spiration!
