Meme coins, the often-mocked cryptocurrency phenomenon built around viral internet jokes, are attracting a new wave of attention thanks to their potential role in Web3 adoption.
What Happened: Paul Veradittakit, an investor at venture capital firm Pantera Capital on Friday took to X (formerly Twitter) to share his insights on why meme coins shouldn’t be dismissed.
Veradittakit argues that meme coins thrive on attention. Their meme-based nature fuels online discussions and social media campaigns, attracting new users and potential buyers.
He cites instances where meme coin communities successfully raised funds for real-world promotion, like putting a meme on the Las Vegas Sphere, leading to price surges.
Veradittakit highlights the power of memecoins in distribution.
Unlike traditional NFTs, with their limited ownership pool, memecoins are fungible, allowing for wider distribution and potential ownership by millions.
He suggests leveraging this strength to overcome the distribution challenges faced by the NFT market.
Initiatives like the ERC-404 standard, which enables fractional NFT ownership, could benefit from the memecoin model’s ability to incentivize wider participation.
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Veradittakit presents a unique perspective on meme coins’ ability to revitalize networks. He cites the example of a Solana SOL/USD meme coin that was airdropped after the FTX collapse, which helped reignite community faith and activity on the platform.
The meme coin quickly integrated into DeFi protocols and apps, showcasing its potential to stimulate network activity.
The Future: Memecoins As A Web3 Trojan Horse
Veradittakit believes memecoins are not just a fad.
He observes a growing trend of young people using memecoins as a way to learn about cryptocurrency and experience market fluctuations with friends.
He further argues that memecoins can act as a “Trojan Horse” for Web3, attracting new users and fostering broader adoption of DeFi protocols and the entire Web3 ecosystem.
What’s Next: The future of memecoins and their potential impact on Web3 is likely to be a topic of discussion at industry conferences like Benzinga’s Future of Digital Assets conference, scheduled for Nov. 19.
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