The memecoin market has been experiencing a remarkable ride to the top, thanks to some overwhelming gains experienced by some of these tokens. However, some market participants including Mechanism Capital co-founder Andrew Kang believe that a new class of tokens will outshine the regular ones. According to his post on X, Kang believes that culture tokens would be more profitable than the ones based on animals or simple jokes.
Mechanism Capital co-founder discusses ‘culture coins’
In his post, the Mechanism Capital co-founder stated that these new culture coins, which are developed off cultural values like politics, religion, lifestyle, and brands can be more viral. He explained that these tokens could go ahead to outside the big tokens like Dogecoin and Shiba Inu of the last memecoin cycle. “Communities with strong values and identities naturally try to convert others to their beliefs and publicly display what it is they love about their lifestyle. They are inherently viral,” Kang said.
He added that these communities could base their ideologies on certain beliefs like politics, sport, and way of life or they could make it a different mix of everything that he mentioned. The Mechanism Capital co-founder noted that two tokens, Jeo Boden (BODEN) and Doland Tremp (TREMP), built by communities harboring anti-woke and anti-right wing views have experienced massive growths out of their communities.
Debates and perspectives on memecoins
BODEN has experienced a monstrous surge of over 700,000% since its launch on March 9. Presently, the token has a market cap of $587 million and is the 191st token by market value according to CoinGecko data.
BODEN’s price action since launch. Source: CoinGecko
However, TREMP, though has gained some traction, is not on the same level as BODEN. The token currently has a market cap of $73 million. Aside from politically motivated tokens, Kang made an example of ZYN and MOUTAI, which are coins motivated by successful brands. He noted that these tokens could benefit from the success garnered by these brands. However, there has been somewhat of a division concerning memecoins and their benefits in the crypto sector.
For instance, BitMEX co-founder Arthur Hayes recently lauded the positive impacts of these tokens on their blockchains. In contrast, other analysts have specified the risks associated with entering the ecosystem. Regardless of what the market thinks about them, the tokens have enjoyed quite the rise in the first quarter of 2024, with CoinGecko data stating that the top 10 memecoins had a cumulative 1,312% gain.
