The platform’s analyst noted that such assets attract newcomers to the blockchain

Messari calls meme tokens a “Trojan horse” of cryptocurrency adoption

28.03.2024 - 15:05

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3 min

What’s new? Meme tokens will remain a vital part of the cryptocurrency market and could potentially become a new asset class, said the Messari aggregator’s vice president of research, Maartje Bus. He noted that cryptocurrency has been rightly criticized for its lack of use cases for the average consumer, but meme tokens have proven successful in steadily attracting new users to the blockchain.

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What else is known? According to the analyst, meme tokens are attracting investors and have a lot to offer beyond “lighthearted fun.” Bus described the current environment as a “memecoin mania” that is fueled by a bull cycle that began after the approval of spot bitcoin exchange-traded funds (ETFs) in the US.

The expert believes that such assets can be viewed as speculative long-tail commodities (a retail concept) akin to lottery tickets or “penny” stocks. He also suggested that the meme token concept could be applied to the prediction market, for example, if coins using US presidential election candidates as mascots were issued.

Bus called meme tokens the “Trojan horse” of cryptocurrency adoption, as one of the consequences of such assets has been that they “inadvertently” introduce concepts such as cryptocurrency wallets and decentralized finance (DeFi) to newcomers to the Web 3.0 sector.

Trader increased his investment in the MEW meme token 255 times in less than two hours

Trader increased his investment in the MEW meme token 255 times in less than two hours

The unrealized profit from the deal was $8,9 million

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Earlier, the Arbitrum community proposed launching a fund to support meme token projects to stimulate activity in the blockchain. “It’s hard to argue that Solana and more recently, BASE, have taken all the attention <in this segment>,” the initiative’s author writes.

At the time of writing the news, the top 100 cryptocurrencies by market capitalization include six meme tokens: DOGE, SHIB, PEPE, WIF, FLOKI, and BONK. Except for PEPE, all of them use a Shiba Inu dog as their mascot.

Some teams are actively working to transform mock projects into vast financial ecosystems. For example, the creators of FLOKI plan to launch regulated bank accounts for fiat transactions and a digital debit card feature.

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