jakiro
Author: Jen Albert Compiled by: Vernacular Blockchain
As the host of Blockchain Banter, I recently led a discussion about memecoins – a topic that has caused strong controversy throughout the industry.Whether you love them or hate them, they cannot deny their influence.Some think they are ruining the crypto industry, while others see it as a natural evolution of the development of decentralized markets.
In order to analyze this debate in depth, I invited Justin Havens (Polygon DeFi Ecological Growth Head) and Dr. Mark Richardson (Bancor & Carbon DeFi Project Lead) to discuss it together.We have conducted in-depth discussions on the following core topics:
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The Origin and Role of Memecoins
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Regulatory Challenges
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Investor vs. Gambler mentality
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Influencer vs. Key Opinion Leader (KOL)
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Possibility and limitations of DYOR (self-study)
This conversation reveals the multiple influences of memecoins in the crypto market. You are welcome to discuss it together!
1. Memecoin dispute
Memecoins has caused huge differences in the crypto field.Some think they are an interesting and community-driven way of market participation, while others think they undermine the orthodoxy of the industry.On the one hand, well-known figures like Benjamin Cowen even said bluntly: “Memecoins is destroying the crypto industry.”
On the other hand, we have also seen some industry celebrities taking the opposite attitude, such as BN (Binance) co-founder and former CEO Changpeng Zhao (CZ), who posted photos of his pet dog Broccoli and attached a full page of them.The story background seems to encourage (or not?) more of the birth of memecoin.
“I just posted photos and names of my dog. I didn’t release memecoin myself, and whether to create it depends entirely on the community (or not to create it). However, I may be more popular with some on BNB Chain (BSC)Memecoins interaction. The BNB Foundation may provide rewards for top memecoins on BNB Chain, such as LP support or other incentives. Details are still being discussed, so stay tuned.”
Justin believes that memecoins is not an accidental product, but an inevitable result of regulatory crackdown on the issuance of structured tokens.Due to concerns about legal risks, the project party had to choose the following methods:
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Total avoidance of any discussion related to the practicality of Tokens
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Choose to raise funds to exclude retail investors
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Issuing Tokens with no clear purpose
So, what happens when the only viable way of issuing public tokens is tokens with no practical purpose?The answer is the rise of memecoins.
Mark goes further: “Mark incentives determine the final result.” Regulators have created an environment where practical tokens fall into the legal gray area, while tokens that clearly claim to be “useless”** can hardlyFace compliance risks.The result is that memecoins quickly dominate.
2. Investor or gambler?The subtle boundaries of the crypto market
One of the biggest misunderstandings in the crypto field is the belief that there is a clear boundary between investment and gambling.But does this boundary really exist?
Investors study fundamentals, assess risks, and make decisions from a long-term perspective.
Gamblers chase hot spots, impulsive transactions, and accept extreme risks.
Justin noted that many retail traders are forced into a “gambling mentality” because they cannot participate in traditional early-stage investments.Unless you are a qualified investor, your only option is speculative trading—that includes memecoins.
Mark believes that the boundary is more blurry than most people think.After all, there are many obvious scams among the best performing crypto assets in history.As he said:
“People will advise you not to vote for this, saying it is a scam. And others will say, ‘I know it is.'”
It is this paradox that fuels the craze of memecoins—the most scam-like project that sometimes brings the biggest gains.
3. Did KOL fuel Memecoin’s fanaticism?
The topic naturally turned to KOL (key opinion leader) and paid promotion internet celebrities – this is an important driving force in the memecoin ecosystem.So, is the root of the problem memecoins itself or those who sell them for profit?
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In fact, there is an essential difference between a real KOL and a paid internet celebrity:
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True KOLs are respected industry builders and experts.
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Paid internet celebrities are often promoting tokens that they are employed to promote, creating an illusion of “natural attention from the market”.
This also explains the other side of memecoin hype – is it market demand that creates them, or is it artificially fueling?
4. Is the word KOL abused in the encryption circle?
Mark believes that the word “KOL” is often misused in the field of encryption.Many so-called “opinion leaders” are essentially just advertisers who resell Token shares behind the scenes.If a project requires money to make people talk about it, it is worth thinking: Why does it need to do this?
What is the core?Questioning incentive mechanisms.If someone desperately sells a token, ask yourself first – what can they get from it?
5. DYOR: Is it really feasible?
The sentence “DYOR” is repeatedly emphasized in the encryption circle, but reality is often much more complicated than slogans.As viewer Mike pointed out, DYOR is easier said than done.
Most people lack both tools and expertise to analyze correctly:
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Token allocation status
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Potential risks of smart contracts
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Key elements such as liquidity structure
Although real on-chain analysis requires some investment, there are indeed some tools that can help, such as Bubble Maps, which can intuitively track the Token distribution and identify potential scams.But at the end of the day, if you don’t understand what you are buying at all, you’re more like gambling than investing.
6. Can Memecoins evolve?Take Sei as an example
There is a reverse view in the discussion: some memecoins, although at first just jokes, then evolved into real projects.
Seiyan (memecoin on the Sei chain) is a typical case – it was originally just a memecoin, but later launched its own aggregator to transform the dynamic energy of the community into more practical products.
The boundary between Memecoins and functional tokens (utility tokens) is not always clear.Sometimes, memecoins can also grow into real projects and contribute far more to the ecosystem than a “fun token”.
7. Conclusion: Memecoins will not disappear
Memecoins remains one of the most controversial topics in the crypto industry, and the discussion is far from over.
But there is one thing that is unquestionable – memecoins has become part of the market and will not disappear in the near term.Their demand is market-driven, and memecoins may continue to dominate until regulation is clear and cannot support structured token issuance.
So, what is the root of the problem?
Is it memecoins itself?
Is it the speculative mentality of KOLs and the market?
Or is the imperfect regulatory system?
As Justin concluded:
“If you correct the incentive mechanism, you can correct the market.”
