Culture coins, a new class of memecoins centered around cultural values, have the potential to be extremely profitable in the cryptocurrency market. According to Andrew Kang, the co-founder of Mechanism Capital, culture coins that tap into deeper cultural themes such as politics, brands, religion, and lifestyle have the ability to go viral and generate significant returns. Kang emphasized that communities with strong values and identities naturally promote their beliefs and preferences, making them inherently viral.
Kang highlighted two specific examples of culture coins built on the Solana blockchain – Jeo Boden (BODEN) and Doland Tremp (TREMP). These coins emerged from communities that held “anti-woke, anti-Biden, and right-wing views.” BODEN, which was launched on March 9, has seen staggering gains of over 700,000%. With a market capitalization of $473 million, BODEN ranks as the 191st largest token by total value. TREMP, a parody coin inspired by Donald Trump, has also experienced significant gains since its launch, although not as much as BODEN. It currently has a market cap of $73 million.
Apart from politics, Kang also suggested that memecoins based on successful consumer brands could capitalize on the popularity of those brands. He specifically mentioned ZYN and MOUTAI as examples of memecoins that leverage the associated lifestyle and identity of the brand for added virality. Kang compared investing in memecoins to investing in regular assets that offer high returns. He believes that the assets that perform the best are the ones that people have the most faith in.
While there is division among experts regarding the impact of memecoins on the cryptocurrency industry, they have proven to be the most profitable sector in the market for the first quarter of the year. According to CoinGecko, the top 10 largest memecoins recorded an average gain of 1,312.6% for investors in Q1 of 2024. This outperformed other narratives such as tokenized real-world assets and layer 2 projects.
Culture coins have the potential to be highly profitable in the cryptocurrency market. By tapping into cultural values and leveraging strong communities, these memecoins can go viral and generate significant returns. While opinions on memecoins vary, they have proven to be the most profitable sector in the industry so far this year.
Investing in memecoins based on political views is just promoting division and extremism. It’s not healthy for society. 🤦♂️
With culture coins, the possibilities are limitless. Strong communities and cultural themes are the keys to success. Let’s go! 💪🌟
I worry that the memecoin market is creating a bubble that will eventually burst, leaving many investors with significant losses.