Can Meme Coins Transition From Internet Jokes To Legitimate Assets?
The crypto industry, for as long as it has existed, has been a source of controversy. Much of this controversy stems from the fact that lovers of more ‘traditional’ investments don’t take it seriously. But even within the industry, meme coins face a unique type of pushback, even from crypto investors.
Meme coins, at their core, are crypto assets that are based on memes, pop culture, and other recognizable references. They’ve become one of the hottest asset classes, with millions spent on different tokens so far. As Sal Miah writes, some of the most popular meme coins to buy raised millions even at the presale stage, showing how hungry the public is for them. They’ve existed in the crypto sector for years at this point but can they overcome the bias against them to become legitimate assets?
The History of Meme Coins
While cryptos as a concept have been around since about 2009, meme coins are a little more recent. The first meme coin was Dogecoin, which was launched in 2013. Dogecoin was based on the popular Shiba Inu meme that sees a dog seemingly reacting to an odd situation. Dogecoin remained fairly underrated in the crypto space till around 2021, when it began to climb in both market value and overall visibility.
This was further bolstered thanks to support from public figures like Elon Musk, who tweeted about the currency. Since then, the billionaire has gone on to incorporate Dogecoin into operations at both Tesla and SpaceX. In fact, Dogecoin is being used to fund an ongoing mission to the moon. Musk was also recently named head of the Department of Government Efficiency, the acronym for which is DOGE.
As all this has been happening, we’ve seen the entry of new meme coins into the space. There have been many variations of the dog-themed crypto, such as Shiba Inu and Dogwifhat. Other types of meme coins such as those based on TV shows ($KENNY, for example, is based on South Park) and even those based on political figures such as $TRUMP. At this point, the meme coin market is as packed as ever.
The Meme Coin Boom
As meme coins have continued to increase in popularity, the debate has continued about whether or not they are legitimate assets. This calls back to the criticism that crypto as a whole continues to receive, all of which can be dispelled in several ways.
First, there is the financial viability. As long as meme coins continue to bring in returns, investors will keep flocking to them and eventually, even the mainstream financial world will embrace them. An example of this would be the spot Bitcoin ETF. The token was derided by the mainstream financial world for years, but after delivering mammoth gains year after year, an ETF was approved. No matter what mainstream investors think of Bitcoin today, it has been granted a great degree of legitimacy.
Then, there is the matter of use cases. Some do not see meme coins as legitimate because they are arguably based on hype. But while there are certainly meme coins that are only based on hype, there are others that have developed significant use cases, such as Dogecoin. In fact, one of the biggest meme coins of 2024 is Pepe Unchained, which is based on a layer-2 Ethereum solution that will deliver some of the fastest speeds in the industry. This sort of meme coin can expect to have long-term use and market value for this reason. Some meme coins will fall into obscurity due to their lack of use cases, but inevitably, some will retain their dominance within the market.
Then there is the community around meme coins. By their very nature, meme coins need a passionate fanbase who cares about their aesthetic, tokenomics, or both to survive. These communities will keep their chosen meme coins alive for years, even off of the strength of hype alone.
The Future of Meme Coins
Looking into the future, we can expect meme coins to continue to thrive within and outside of crypto spaces. They have proven that they can deliver profits for investors and this will continue to keep them relevant. In fact, tokens like Dogecoin are being eyed as next in line for a spot ETF and if this happens, it will only add to their legitimacy. Meme coins can also bank on the support of passionate communities, as well as billionaires who are invested in their growth.
Even if the wider financial space does not quite see them on the same level as stocks, they will always have supporters. It is also worth noting that meme coins have been actively expanding their use cases and applications. Far from just being internet jokes, many are solidifying their use in very serious fields and this goes a long way to gaining the industry more respect.
In the next few years, meme coins will likely become more visible and more profitable. As far as some are concerned, this makes them legitimate assets, all criticism aside.
