Share Dialog
One of the biggest challenges of working in crypto and around onchain apps is the constant propulsion to find the next new thing. Fads come and go as the swarm of attention moves elsewhere.
For a long time, I kept memecoins at arm’s length. I was dismissive — a common reaction to not understanding something.
But as we’ve been discussing unique ways we could help writers build relationships with their readers and make money on Paragraph, it's been hard to totally ignore memecoins. Then, I finally got around to watching Murad's presentation on memecoins from TOKEN2049.
Murad's insights into why memecoins outperformed in 2024 are super compelling. But what struck me most were his frameworks for understanding why the motivations behind why people were investing in memecoins. We saw these same types of motivations in more “traditional” media, across Hulu, Crunchyroll, HBO, and Substack — those same basic motivations are what drove people to become fans of brands, shows, writers / creators, and so on.
One of the key points Murad makes is that retain investors don't care about the software behind blockchains, onchain apps and products, or any crypto project. They mostly care about making money, but also having fun and wanting to be a part of something.
I love how Murad breaks these motivations down into specific percentages (e.g., 70% of their motivation is driven by wanting to make money). People’s decisions are driven by a mix of motivations. People make decisions for a mix of reasons. If you're building a product — a SaaS / enterprise product, a consumer app, a newsletter, paintings — one of the most important things to do is develop a deep understanding of why people are buying your product, which is often a mix of various reasons.
Hyper-speculation and the desire to make money are undeniably powerful forces in crypto. But as someone building products in this space, I get nervous when financial gain is the only motivator. It feels too zero-sum, like a house of cards waiting to collapse.
That's why I found it especially compelling that Murad introduces motivations beyond purely seeking financial gain: fun & community.
Taking this a step further, Murad offers several ways memecoins provide utility. This is where things really click for me — these are all the reasons why people fall in love with anime shows or the Crunchyroll brand, writers or pieces of writing on Substack, and IP universes like Game of Thrones, Marvel, or Star Wars.
These elements of value helped me understand why people would invest in (buy? participate in?) memecoins. It's a helpful framing for clearly separating out the more software-driven altcoins vs. media- / community-driven memecoins. To be successful, memecoins don't need intrinsic cash flow or revenue share to satisfy investors — they're providing "services", like buying a ticket to a movie.
Now, you could easily make the argument that people aren't driven by the desire to make money when they buy tickets to movies, subscriptions to streaming services & Substacks, and so on. Yes, true, but I think introducing the desire for fans to make money could actually lead to some really interesting creative projects, works of art, and new worlds & forms of media.
And perhaps just a larger economy for creative work — wouldn't that be cool?
This is ultimately why I think that percentage allocation across motivations is important. If people invest in memecoins purely for financial gain, many will lose interest quickly; but if they see memecoins as a way to make friends, express themselves, or support ideas they care about, the memecoin cycle / trend becomes more durable — and far more intriguing.
A quick aside: I've been thinking about how memecoins might be part of a broader shift in how younger generations approach "investing".
My parents & other boomers were all about buying a house, the 60/40 portfolio split, and were pretty skeptical of businesses that didn't generate nearly-immediate profits. My generation was among the first to deeply embrace growth stocks, cryptocurrencies, and other riskier alternative investments. Now, younger generations seem to be leaning even harder into asymmetric bets.
With inflation driving up costs and affordability declining, the difference between a $1,000 and $2,000 net worth feels negligible. But the possibility of turning $1,000 into $100,000? That’s deeply compelling.
This is one of Murad's central points in why memecoins have outperformed altcoins: memecoins enable poor HODL’s to get rich, turning them into unpaid evangelists; altcoins only allow a small group of insiders to make money at the expense of "retail" investors.
Don't get me wrong — I still think chasing 100x returns investing in memecoins is incredibly risky and, echoing from above, on of my main concerns is that those purely seeking financial gain are building a house of cards.
What do you think? Are memecoins here to stay? Where do you see product opportunities, if any, to support the continued growth of memecoins (? What do you think of Fred Wilson's "provocation" below?
TikTok turns all videos into memecoins that can be traded on decentralized exchanges all over the world.
For anyone skeptical of memecoins, but open-minded, I highly recommend checking out Murad's presentation. It introduced me to a new way of thinking about memecoins and ultimately made me much more optimistic about their durability — maybe it'll do the same for you.
Talk soon,
Reid
All comments (87)
yet to read a convincing case for memecoin utility and it's been a while now since memecoin mania resumed afresh. are we all just lying to ourselves to pump the bags?
What about the original write up for higher?
oh i must have missed that. point me in the right direction?
I think it was @lght.eth https://paragraph.xyz/api/metrics/email-track/click?id=jIQ1awgaIIzBVSp11sM7&linkId=07c79370-7a25-46d5-a8cd-34d90a535d56&url=https%3A%2F%2Fparagraph.xyz%2F%40thenetworkcompany%2Fmatrix but on mirror (can’t find it now. Need to check my notion)
I'm still in your camp, but I tried to convince myself otherwise: https://paragraph.xyz/@reidtandy/on-memecoins-from-a-skeptic I really do think Murad's presentation is top notch. Don't agree with everything in there, but helped me better understand why some folks (lots of my friends!) have gotten swept up w/ memecoins.
Semi-regular Paragraph annoyances thread: If you could change one thing about Paragraph, what would it be?
Better search functions of past blog posts
Why did you guys discontinue the article token-gating feature?
Low usage, high maintenance, not a 10X better improvement than existing solutions. It wasn’t how we were going to find product market fit
makes sense what are your top priorities now?
I already reported some issues that have not been addressed yet. * Scheduling a new post in the new UI has no feedback upon click and it still might happen that I click "Post Now" after scheduling because the interface tricks me into behaving iratic. * On Android Chrome with a dark background in the blog, the phones control buttons have a white background. * Disabling collectables globally does not disable collectables when creating new posts ever since the new UI. Every week I have to manually disable collectables in my new posts.
After clicking into an article (or while looking at an author's publications), there does not appear to be a quick way to get back to @paragraph "Home." One can get there via "Dashboard" and another click but wondering if there's a simpler way · 👓 🔵
This is already solved on the new blog/post pages. I’ll DM you to try it out
Already had a reply from this but looking forward to updates! https://warpcast.com/samanthaeharvey/0x5cb2eb75 https://warpcast.com/reidtandy/0x434ef159
I miss token gating. Tbh I don't really get how Paragraph is different from substack et all on the web3 dimension other than pieces getting parked on ARweave in perpetuity
What do you miss about token-gating? We loved token-gating as a way to carve out differentiation, but it got very little usage (by readers *and* writers), and generated a large wave of consistent maintenance & issues. Still trying to figure out why & what we could have done differently... very possible we re-introduce it down the road.
I didn't get to the point where I was actually ready to use it tbh . I had an aspiration to use it as a way to have an inner circle for meetups and the like. Big daydream was a sort of revolutionary era tavern of sorts. So perhaps not the most helpful feedback since it was more an inchoate idea I was excited to run a few experiments down the road with rather than something super clear that I knew what to do with or was actively using.
More posts about wine 🍷
If you don’t like the “make money” consumer value prop for Farcaster—what do you think is better? Reply with a suggestion and rationale. Like replies that resonate.
i prefer the earlier messaging, something closer to farcaster is an economy... etc. which is closer to what @horsefacts.eth casted, make money..with a lot of nuance as to how b/c the current messaging implies solely trading alpha or rewards
Intellectually, I agree. But consumers aren’t looking for a new economy…
😂 yeah, i understand why you are running the current experiment!
fax
best tech is price go up👍
“Airdrop economy”
they're looking for value that emerges naturally from community-driven innovation. the money follows, but it's not the hook
Agree with the rationale. But how do you boil this down to a simple enough message? "With a lot of nuance as to how" does not paint a clear picture in my mind the way "make money" does, even though that picture is trading alpha / rewards.
i like these replies https://warpcast.com/whimsi.eth/0x69f33722 https://warpcast.com/links/0x9d26aee1 https://warpcast.com/kdaniels.eth/0xdfe57578
I think the portability of the social graph is a huge value prop. And due to the TikTok thing, I imagine a lot of people recently realized they can lose an entire brand and following overnight
But average consumer not really affected by this? The creators will be on Instagram / X / YouTube if TikTok goes away. Definitely important to creators but creators are motivated by size of potential audience…
Hmm yeah, true. But as someone who was not previously active on social media or web3, that’s actually part of what attracted me here. But I don’t think I’m necessarily an average consumer lol
But if the consumers are following creators and creators do choose platforms that allow greater portability it indirectly matters to the consumers.
I think the average consumer is affected, because it's a bit of a pain to go find / rebuild your social graph on another platform Most people aren't losing an audience when a platform goes away, but that doesn't mean it's not a disruptive experience
when people see portable they think network-network portability. we don't have that now? if we want to we'd need connections to like 10 other socials networks
I always thought of Farcaster as a place where I’m not the product. I pay to be here and I own my data. My usage and habits aren’t being collected to be repackaged and used against me at a later date. I can’t be de-platformed, censored, or silenced. I can build what I want on top of the protocol and not worry that my access will be turned off because of a whim or impending IPO. This is the easiest and most familiar way to get into social Web3.
I love this narrative and wish it was more true about farcaster
What's not true about it?
Agree with you here, always been my feeling, BUT the current approach is better for attracting more users. People don’t care about privacy or data ownership
The average normies don’t care. But this place isn’t ready for them yet.
I think this narrative needs a lot of development to land, but I think it's the right one. I think educating ppl why they need to onboard is the most important step in cultivating the right culture. "Come to make money" promotes a different culture, even if making money is actually part of the value prop.
We are so early. Web2 is toxic in a million ways but most people haven’t caught on enough to leave it. Before there was no good alternative. But now we have Farcaster. You can have the familiarly of Web2 (this feels like apps people are families with) but built on Web3. It’s still a rough message to sell to people who spend most of their time on traditional social media.
i am so happy i’m able to find like minded people on farcaster
I think this is great because: - even if you don't know, they are curious now - if they aren't curious they don't get to join (good) - this rhetoric is out there now, and people are looking for signs pointing them in the right direction - sounds like it might be drawing other likeminded people (accurate) - doesn't mention crypto or money - being fair, uncensored and not exploitive, both sounds good and describes the protocol
It’s definitely not a quick and quirky message. Mine for that would be no kids and no ads ;) But I do believe something special is being built here. Reminds me of the early days of social when we were so innocent and no one knew how to monetize yet.
I know it's still early for channels but that's where all my thinking goes. "Communities with ownership" "Cooperative communities" Something about having your own governance, your own moderation, your own audience that can't get taken away.
I think there’s a difference between “make money” and “get rich” I’m referencing Chip Wars - the book - where there’s a difference where people are trying to make a living vs make a life changing sums of money by doing xyz and it changes the behavior and urgency
Social network for changemakers. Lean into the small size of the network - it’s early but the people who are here are taking action and not just talking. Be part of something that actually matters.
Like this.
Developers and network effects. I always thought farcaster would hit PMF once > 2 very different apps built on top of the network (twitter/reddit) reinforce each other. I thought paragraph conversations came close. Receipts interesting but fitness may be too small. Has to be social. I think options are - communities (discord) - niches (Reddit) - discovery (Pinterest) - search (real time Google) How about the Warpcast team maintains Warpcast but takes a big bet on client #2? Another completely line of thinking: why did Bluesky grow? Seems the answer is pick a massive and cultural stance (they picked political left). Can’t think of one that works tho, right is taken by X, left is bs, you have crypto but that’s too small.
I’m skeptical on one company pre-pmf having two apps and a protocol. Diluted focus. But agree two at-scale apps would be a big win.
So maybe create incentives for the second app? Serious funding or some kind of accelerator. Also and this sucks but, if this is the only option it’s better to lose focus than die?
Bsky chose the correct growth axis (political) and did not have the baggage of crypto (post-FTX).
So the question is : how to extend crypto and Ethereum in an easyer way for the public. Right now I think warpcast is highly complicated for a non crypto person. Maybe rodeo could give some directions : --> warpcast needs better UX design --> networks with the most traction include a vision of social design , new forms of interactions between people
I like this thinking in terms of two complementary clients like Twitter and Reddit. Both of those were my two main social media platforms for most of the past decade, until Farcaster flipped Twitter for me (I still use Reddit — certainly much more than I use Twitter). I do think it likely that a well built Reddit, YouTube, TikTok, or Instagram analog built on Farcaster would have a synergistic effect with Warpcast or another Twitter-like client. And how powerful would it be to show people, “Look! We have two quite different AAA apps that share the same social graph — that means all your friends, loved ones, and creators on one are also on the other!”
Make money is perfect. If they stick around they’ll make genuine connections. Everyone wins.
stop pandering to the lowest common denominator and lean into the builders here https://cdixon.org/2013/03/02/what-the-smartest-people-do-on-the-weekend-is-what-everyone-else-will-do-during-the-week-in-ten-years
what does leaning into the builders here look like to you?
embrace slower, steadier growth embrace ownership, programmability the only social network for builders/makers more targeting of high-signal individuals rather than broad marketing how do you get 5 more vitaliks?
having said all that, this shit is incredibly hard and these are just my opinions. Respect for you and merkle in the arena, no matter what route you take. I chirp a lot because I believe and I want to contribute, fwiw, not to bring yall down (hopefully it never comes across that way but .. sometimes just good to be explicit, since it's much easier to criticize than to build up .. esp on socials)
The quality of the crowd and of the interactions here is unmatched imo. But this is also highly subjective. If you are not into tech broadly speaking, you might not appreciate that aspect.
Was reading @reidtandy’s article about memecoins and how their appeal boils down to two things: making money and having fun. Could the same energy be why we’re so drawn to @rodeodotclub? In his TOKEN2049 talk (referenced by Reid), Murad highlighted memecoin utilities like: • Fun • Reducing loneliness • Sparking hope (looking at you, 1000x) • Building friendships • Emotional connection • Entertainment • Artistic expression (curating those top 9s is a vibe!) Sound familiar, Rodeo fam? 🤠 https://paragraph.xyz/@reidtandy/on-memecoins-from-a-skeptic
Absolutely! Having fun is underrated and many crypto apps forget how sticky that can be to users. Rodeo is by far the best consumer crypto app of the year! How do you think $CABAL can lean into the fun in the /cryptosapiens channel?
I guess it's all about feeling entertained and emotionally connected. Maybe $cabal memes (meme contests?) or games. Something that helps us connect and feel part of something bigger, while also bringing in the fun. With us being the Cabal, maybe something like a portfolio game where we have a fictional budget to build a token+NFT portfolio and compare results weekly would be fun. We could get some inspiration from what others pick. And it could be extended to interesting projects to check, not just tokens to invest.
Oh cool. I’m actually working on two separate things that address your two points. 1) the first /rounds challenge in the channel to share Cabal designs 2) opening an alpha group for Cabal holders on /frens Would love to hear your thoughts on either, and what you’d personally like to see us do with both.
Whoa! Thanks for sharing & all the kind words, @asha! To me, Rodeo is almost more interesting as I didn't think financial gain was a driving motivation for why people collect on Rodeo. Or am I totally missing something? Are there collectors on Rodeo that are making money and/or are mostly motivated by financial gain?
It's a wonderful read, I really enjoyed it! You helped me organize my thoughts on memes, so thank you! And yes, since Rodeo introduced the secondary sales, it's been a thing collecting 2 or more pieces so you can flip some and keep one forever. Because there are a lot of newcomers who don't have older pieces or simply people missing interesting mints because there are so many drops every day, they can place offers (ranging from 5x to 1000x) and buy them from early birds. It's a game and we're loving it.
It had been a while since I used Rodeo & hopped back in this morning. Very impressive what their team has done!
Bookmarked for later
Whenever you have time, it's a really good read. Reid structured all my thoughts on memecoins in one blog post 😊
That was a great read , thx for sharing. Changed my mind on memecoins and might get into some. I think the timing might be ok too
Glad to hear you finally clicked with the coins memetic power! Curious what you want to buy now 😁 😆
I won't tell u cuz u'll laugh 😂 can tell u it's green lol
I've been trying to better understand memecoins and why people are drawn to them, and how that could become a durable, rising wave over time. I still don't quite get it & still foggy on how some of this manifests into "products" (at least beyond making it super easy to launch a memecoin and exchanges to buy / sell memecoins), so I'd love to hear feedback! https://paragraph.xyz/@reidtandy/on-memecoins-from-a-skeptic
https://warpcast.com/kyletut/0x75509da7
It's true & kinda hilarious.
Yeah I’m in this camp, and think your “closing ramblings” on generational shifts in investing are probably more relevant than the idea that memecoins offer some sort of social utility Still feel like it’s a technology that’s waiting for its breakout use case
For sure... like if you go up one level from the "memecoin supercycle", understanding that a primary motivator is for people to make money, it's interesting to think about the broader wave that can build around a younger generation's unique approach to investing, using money, etc.
I too was (and maybe still am) optimistically skeptical about memecoins, but I think they have the potential to totally change how we think about community building. If you view them beyond pure financial speculation, they become something entirely new: tools for community-driven funding and social-first financial experiences that feel more like joining a movement than using a financial product.
Totally - that's the part I'd like to spend some time brainstorming / imagining how this comes to fruition. Like how does this show up in products we use, IRL, etc. I remember a few years ago there was a lot of hype around "creator tokens". The memecoin waves feels more powerful and sustainable that that, so curious to see where it goes...
If we jump forward 10 years will any meme coin outperform btc or eth? And what I’ve been wondering for years. Will Doge one day go to zero / majorly collapse? Or is it here to stay indefinitely?
I think there's a very reasonable chance a few memecoins outperform BTC & ETH over the next decade. BUT, the vast majority of memecoins won't take off or will flame out back toward 0. I'm thinking it'll be kind of like other pockets of media: there are only a few musicians / bands, TV shows / movies, gaming franchises that truly breakout and become enormous.
I don’t mean a coin valued at 1 today that’s so cheap that it can obviously grow more percentage wise. But let’s say doge or any of the top 10 meme coins today. Can they really self sustain long term?
I wrote a full-throated defense of memecoins that you might find interesting. https://finance.yahoo.com/news/why-memecoins-matter-213328434.html I tried to sketch out where I think it’s all headed. Goes beyond Murad’s presentation and introduces some new concepts like PolicyFi.
This is excellent stuff - thanks for sharing. Another recent example of the positive impacts of memecoins: https://x.com/blader/status/1872302462629286220?s=46
Memecoins are a powerful tool for aggregating viral capital. How we direct that superpower is entirely up to us.
Really like your grounded take on memecoins and their reliance on hype over utility. While they often reflect speculative behavior, its interesting how their popularity seems to show that value today is often created by group stories and shared beliefs. Do you think this could ever lead to something meaningful, or are memecoins just a zero-sum game?
Memecoins attract due to community culture, humor, and hype. Their value grows from social influence, not intrinsic utility. @reidtandy