In an engaging conversation on the Unchained Podcast, formidable journalist and host Laura Shin delved into the world of “memecoins” with prominent crypto traders Ansem and Kel, known online as “blkoiz06” and “Kelxyz.” These influencers shed light on the rise of memecoins, the newest gold mines of the crypto world, and anticipated future possibilities for this unique sector.
Shin initiated the discussion by probing the fundamental question, “Is there any real value in a Memecoin?” This interrogative stemmed from a broad skepticism around tokens based on internet jokes and fads. Ansem argued that the crypto community tends to overthink the value of memecoins as investment projects. He challenged the practice of comparing memecoins with other altcoins in terms of merit or worth.
According to Ansem, the crypto community is innately entrenched in the digital space, deeply familiar with not only the financial intricacies of cryptocurrency but also well-versed in online culture. From his perspective, the significance of memes in internet culture is undeniable and the financialization of their virality is a natural evolution, made possible by the unique features of cryptocurrency.
Shin playfully proposed that if this trend had caught on earlier, the creator of an iconic Drake meme from his 2016 “Hotline Bling” music video could have amassed a fortune by now. Kel supported this theory, elaborating that numerous trillion-dollar businesses have thrived by capitalizing on attention for the past two decades. To him, memes could be considered the driving engine of the internet.
Shin then steered the discussion to address the risks and criticisms associated with the emerging “memecoin mania.” One of the chief concerns is the high-risk potential considering the relatively smaller size of these currencies, and with no backing from institutional money, they could plummet to zero almost effortlessly.
Despite the risks, traders believe that the appeal of memecoins lies in the promise of staggering returns — from 100 times to even a thousand times the initial investment. Ansem further highlighted that losses are not exclusive to this type of currency. Using those who invested heavily in Dogecoin and Bitcoin only to see their values tumble as examples, he argued that steep drops and investors buying at peak value are part and parcel of the crypto market’s general dynamics. The key, Ansem proposed, is to fix the questionable practices of project teams controlling and abruptly dumping a vast supply of coins.
In a response to the podcast, a user attributed the recent surge in memecoin investments to the financial indifference and liquidity limitations amongst the younger investors. Simplifying it further, they characterized buying memecoins as akin to purchasing a lottery ticket.
Meanwhile, intriguing incidents like a trader reaping a 4,906-times windfall in a single day by treating memecoins like lottery tickets have also been reported. Take the case when an investor parlayed a mere $30 into an impressive $147,000 by trading their 0.2 SOL into 2 million AGORA.
As for the future of memecoins, both Ansem and Kel were unified in their belief that memecoins are here to stay. Drawing parallels with the previous investment cycle’s trend of NFTs, Ansem thinks that the shared sense of community and collective development adds to the appeal of memecoins. He also predicts that all memes might evolve into coins within the next decade due to the prevalent trend of financial monetization.
On this point, Kel concurred, speculating that the practice of financializing the creation of a meme could become commonplace, reflecting the broader trend of financialization driven by advances in crypto technology. He insists that memecoin investors are at the forefront of this trend, trying to harness and capitalize on the fleeting popularity of internet memes.
Tracking the weekly progress of the crypto market, the total market cap stands at $2.22 trillion. All eyes are now on these dynamic traders, their speculations, and the remarkable world of memecoins.
