From DOGE to GHIBLI, what should the next level of meme coins look like?

Original Title: Social currencies are the future of memecoins

Original Author: LucaNetz, CEO of Pudgy Penguins NFT

Original Compiler: Rhythm Little Deep

Editor's Note: The article focuses on the rise of memecoins and their potential and limitations. The author believes that while memecoins are a unique vehicle for the speculative mechanisms of cryptocurrency, their development is hindered by a lack of innovation, stagnation, and a pure reliance on hype. The article suggests that memecoins should evolve into "social currencies" to drive the development of the crypto industry, as social currencies are an evolved form of memecoins, whose success relies on execution rather than luck, and may ultimately lead to a new transformation in the crypto space.

Here is the original content (reorganized for readability):

The cryptocurrency market over the past 18 months has been like a roller coaster, and amidst this chaos, we have witnessed the rise of memecoins. Although memecoins are not a new phenomenon—indeed, they are one of the oldest forms of cryptocurrency—they have once again proven themselves to be the preferred vehicle for participating in the most unique mechanism of cryptocurrency (speculation).

While memecoins are essentially pure and almost artistic, they also have a dark side. No, the problem is not with insiders or small groups—this is a common ailment that plagues the entire cryptocurrency space. In my view, the real issue lies in a lack of effort, failure to seize opportunities, and people's complacency in building memecoins. Perhaps I am too naive, but I refuse to accept that memecoins should stop here—at least I hope that is not the case.

I firmly believe that the Trojan horse for the widespread adoption of cryptocurrency is intellectual property (IP), as it can establish credibility in a realm lacking a trust ladder, and memecoins, like NFTs, are a form of IP. Memecoins have a tremendous opportunity to drive the development of the crypto industry by deeply engaging with the minds of ordinary people. However, they have not broken through the potential boundaries of their crypto-native roles; instead, they have stagnated on the path of transcendence, lacking originality and being mundane. I worry that if the status quo is maintained, the drawbacks will outweigh the benefits. For this category to thrive, memecoins must evolve, and I firmly believe the direction of evolution is to become social currencies—tokens that transcend lazy pump-and-dump schemes and transform into scalable, memorable, and beloved IP.

My argument is not to replace memecoins with social currencies but to add a final stage to their growth roadmap. Memecoins must graduate from meaningless on-chain images and evolve into social currencies that can drive the development of the crypto industry, possessing productivity and perception. I believe there are existing tokens that belong to this category. This article will explore the current state of memecoins, why successful projects should evolve into social currencies, and the impact of social currencies on the crypto space.

First, what are social currencies?

Social currencies are tokenized assets that represent value within a specific community, typically used to incentivize participation, reward contributions, and enhance brand or community loyalty. They operate similarly to traditional currencies, but their value derives from social interactions, reputation, and influence.

In simple terms, social currencies are memecoins with fundamentals—they are progressive, perceptive, and focused on nurturing communities that can sustainably create viral effects, rather than extracting value from fleeting hype.

Memecoins vs Social Currencies

Memecoins do not create viral effects—they monetize viral effects, draining the heat until it fades. In contrast, social currencies possess perception and can actively promote their IP through various media, collaborations, and integrations, continuously generating viral effects.

Typical lifecycle of a memecoin:

• Idea → Token issuance → Community cultivation → Community supports narrative → Narrative fades → Community fades

Lifecycle of a social currency:

• Idea → Token issuance → Community cultivation → Community supports narrative → Brand creation → Brand expansion → Ecosystem building → Global adoption and recognition as currency

In my view, all social currencies initially start as memecoins, but as momentum builds, they must evolve into social currencies. The following diagram accurately illustrates this process.

I love this diagram because it shows that social currencies are not meant to replace memecoins but are their evolved form. To me, social currencies are memecoins backed by real value. Anyone can issue a memecoin, but only the best can inject real value into it.

If you believe that liquid crypto assets will primarily belong to the retail asset category, then you are believing in memecoins and their success. If you believe that institutional capital will eventually flow into altcoins, then you must expect fundamentals to dominate. Social currencies combine the advantages of both—retail appeal from memecoins and the engaging qualities sufficient to attract institutional participation. In my view, social currencies blend the essence of memecoins and utility tokens.

When analyzing the flaws of memecoins, it is clear that they could have more potential, but we allow social consensus to convince ourselves that "memecoins should be ineffective, and it has always been this way." I personally refuse to accept this as the future norm of the field. To understand my frustration, one must first dismantle the current constraints on memecoins and how social currencies can resolve these issues.

Flaws of Memecoins

• Stagnation: Losing momentum as trends fade
• Stigmatization: 99% of speculators lose money, not long-term holdings
• PvP model: Designed for short-term flow, devolving into a game of musical chairs for existing users
• Lack of infrastructure to attract new users
• No real belief support beyond illusory narratives—no fundamentals
• Success often relies on fantasy and luck

Advantages of Social Currencies

• Perception: Can create and capture trends, maintaining continuous relevance
• New narrative: Combines the durability of memecoins with real fundamentals that support growth, suitable for long-term holding
• PvE model: Aims to drive the development of the crypto industry and attract new users
• Continuously creates demand through content plans, brand collaborations, and IP growth
• Builds real things that transcend the industry, enhancing holders' identity and belief—there is a real belief foundation
• Success does not rely on luck or narrative but is supported by real fundamentals

Perception vs Non-Perception

For traders and investors, the core difference between memecoins and social currencies lies in perception—the ability to maintain continuous relevance. Social currencies possess perception while memecoins do not, which is the key that traders should focus on. Perception = Relevance = Attention = Momentum. Unless you are a crypto legend (like DOGE), anything without perception will ultimately fade away.

At this point, some may think: "I don't want memecoins to bear any execution risk."

This psychological battle began with NFT art collectors in 2020, and I am surprised that we have continued this narrative. My rebuttal is simple: things without execution risk rely entirely on luck. Execution risk is the only risk worth taking; if your holdings do not depend on execution, I can say with utmost certainty that in 999,999 out of 1,000,000 cases, your performance will be inferior to those betting on execution (though I still wish you good luck).

The Future of Social Currencies

To realize their true potential, memecoins need to evolve into social currencies in their final chapter. Tokens that create culture, nurture deep community bonds, and integrate into real applications will define a new era of cryptocurrency. The shift from stagnant speculative assets to a dynamic participatory ecosystem is not only necessary but inevitable.

Now the question you need to think about is: who will lead this transformation?