What Is a Meme Coin? And How Are They Defying Crypto Conventions?

2022.06.30 23:40

What Is a Meme Coin? And How Are They Defying Crypto Conventions?

Memes are part of the DNA of the Internet. They have existed since the early days of Web1, and will continue to exist into the Internet’s future, existing as reflections of the time, culture, and comedy of the moment in which they were created.

It is no surprise, therefore, that memes have clashed with crypto. However, while most crypto tokens focus on utility and decentralising finance, meme coins go against the grain, with their focus being far more centred on the token’s community and the fun that can be had in such an environment.

But what exactly is a meme coin? And how are tokens like Big Eyes (BIG) defying the conventions of what a crypto token should be?

Understanding The Utility Token

First, it is important to understand what a typical crypto token is. For this, we will analyse Ethereum (ETH).

Looking at Ethereum (ETH), its purpose is clear. The token can be used to buy, sell, and trade in a variety of goods like NFTs, while the blockchain can be used to host a huge range of smart contracts and other, smaller tokens and programs.

Ethereum (ETH) is practical. It covers all the necessities of a crypto token, laying foundations for other tokens to build upon while also being incredibly successful in and of itself. However, despite its popularity, how often can Ethereum (ETH) be seen discussed, outside of prices and practicality?

This is where meme tokens come in.

A Brief History of Meme Coins

Meme coins can first be seen entering the crypto landscape with Dogecoin (DOGE), which was released in 2013 during the height of the Doge meme.

This was still in the infancy years of cryptocurrency before giants like Ethereum (ETH) entered the scene, and Bitcoin (BTC) was still working to get its value to four digits. Dogecoin (DOGE) wanted to be seen as an alternative to Bitcoin (BTC) that was fun and lighthearted, to bring in new crypto users and provide a different way to engage with the space.

Since then, the tradition has remained, with tokens based on popular memes as well as derivatives of Dogecoin (DOGE) becoming a major player in the crypto market. These tokens also tend to be fun and lighthearted, defying the expectations set by typical tokens and blockchains.

What Are The Differences?

For the easiest way to see the differences between a utility token and a meme token, compare Ethereum (ETH) to Shiba Inu (SHIB).

For one, Shiba Inu (SHIB) uses a far more unique token design, featuring a cute, minimalist dog. This design gives the token life and personality and calls back to the breed of dog that founded the meme coin movement. Compare this to the simple diamond design of Ethereum’s (ETH) token – does it have a personality?

Secondly, when compared to Ethereum (ETH), Shiba Inu (SHIB) has little to offer in terms of utility. It can be bought, sold, and traded, however aside from this, the token has little to offer. However, for Shiba Inu (SHIB), this doesn’t matter.

The goal is not to host smart contracts or other crypto projects, but to serve the community that has formed around it. It exists to capitalise on the potential of memes in the crypto space and to generate wealth through its community.

It is a system that completely defies the standards set by tokens like Ethereum (ETH) but is one that has proven to be a major success.

What Is The Next Step For Meme Coins?

Memes constantly shift and evolve, and for meme coins, this is also true. However, these evolutions do not always mean coins derivative of Shiba Inu (SHIB) or Dogecoin (DOGE). These evolutions can also come in the form of tokens completely flipping the script, creating a meme token in direct opposition to those most dominant in the industry.

Big Eyes (BIG) encapsulates this perfectly.

The token is based on a cute, big-eyed cat, as a direct opposite to the dogs that dominate the meme coin space. However, the real evolution comes in the fact that this cat, Big Eyes, has a personality, and a story to tell through his crypto token.

By making Big Eyes a marketable character with tangible thoughts and feelings, the audience’s connections to him run much deeper. He is not just a funny dog like the one seen with Dogecoin (DOGE), but a fully developed character.

Big Eyes (BIG) is taking the community of the meme coin, the appeal of cuteness, and the marketing strategy of parasocial relationships with media characters, and running with it, to create a token whose success on launch is expected to be explosive.

This, combined with direct references to doing things differently than other coins, such as their ‘No Dogs, No Masters’ rhetoric, is a clear signal that Big Eyes (BIG) is paving the way for new meme coins on the market.

It is an exciting development, and part of the history of meme coins that you will not want to miss.