KEY POINTS
Paul Veradittakit, a cryptocurrency investor at venture capital firm Pantera Capital, likened memecoins to the “Trojan Horse” for Web3.
In a recent post on X (Twitter), Veradittakit shared insights to delve deeper into memecoins, following their recent surge in popularity.
For instance, just a week ago, a trader turned a modest $13,000 into a staggering $2 million, marking an impressive 15,700% increase through an investment in the newly launched memecoin, Donotfomoew (MOEW).
Memecoins are cryptocurrencies inspired by internet memes, often characterized by quirky names and themes. They thrive on community engagement and viral marketing, making them highly volatile.
In his post, Veradittakit mentioned the case of holders of a viral memecoin depicting a dog with a knitted hat that successfully raised $700,000 to place their meme on the Las Vegas sphere. Following that, the memecoin surged by 25%.
He also highlighted the case of politically-related memecoins, noting their surge in popularity during presidential elections, exemplified by memecoins tied to Donald Trump and Joe Biden.
Moreover, in comparing NFTs and memecoins, Veradittakit underscored how the former suffer from limited visibility due to their restrictive ownership pool, while the latter offer unlimited potential ownership.
Memecoins have also demonstrated the ability to “revive” a network, as evidenced by the Solana blockchain. Following the FTX collapse, the Solana network faced challenges. To revive the network, a memecoin featuring an orange, emoji-style dog was airdropped to the Solana community — and it achieved its intended purpose.
In his concluding remarks, Veradittakit noted, “Not only can these attention assets supercharge applications and networks.” He concluded, “They are also the best way to onboard the next generation to experience the latest DeFi protocols & the rest of Web3.”
