Fun and lucrative, memecoins create buzz and controversy. In addition, they have a formidable function within the world of Web 3. In fact, they create communities and forge links like no other asset before. Which begs the question of what role does community play in the success of memes?
Same coins: what are they?
To understand what a meme coin is, we must first define meme. A meme simply refers to an image enhanced by text and spread across social media. This type of illustration was used in non-utility tokens like the shit corner. In other words, in the cryptocurrency industry, jokers have made it an asset based no longer on blockchain technology like other cryptocurrencies, but on simple market sentiment.
As a result, the same coins are going against the tide of common so-called utility cryptocurrencies. They are not backed by any technology and do not intend to resolve any particular problem. However, ordinary cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH) and many others are centered around certain issues and are powered by a protocol. Bitcoin, called digital gold, embodies the store of value while Ethereum meets the expectations of dApps.
On the other hand, the same corners do not intend to resolve any technical problems. On the contrary, they want to demystify digital tokens to the public by making them more likable without all the technicality and seriousness that bores and scares away non-technology enthusiasts. In this way, the community is at the very heart of the development of the same corners which only live through and for the buzz on social media (Telegram, Tweeter, TikTokReddit…). Their motto is to unite around a unique culture. This culture can be based on jokes, on political news, unusual, satire, etc.
Community engagement
For a meme coin project to be successful, the presence of a strong community is necessary. And what makes this community strong is not only the number of members who make it up, but also and above all the commitment and dynamism of each member. To build stronger bonds between members and create a real sense of belonging to the community, developers must encourage members to create their own content. In addition, developers must communicate with each other on a regular basis and organize events where everyone can get involved.
The viral effect
What strikes you first about meme corners is their viral potential. Undoubtedly, when comparing the same corner community approach to traditional marketing approaches, the conclusions are obvious. The viral potential of meme corners is a step above traditional marketing. This is a huge advantage, because anyone of good faith will admit that the presence of a strong and engaged community can keep the flame alive even during down market seasons. In turn, the value of the cryptocurrency on the stock market can increase thanks to the continued support of the community.
The other side of the coin
The problem with meme coins is their too great dependence on the community. They have nothing else to offer. And when we know that man is diverse and undulating, relying solely on the community is akin to building a house on sand. The crowd can be excited now and cool down later. Therefore, putting all your trust in the community can lead to bankruptcy.
The forces behind the success of meme coins
There are certain strengths that support the success of the same corners, and all of them have to do with the community. These are the following forces:
- The cult: members of communities in the same areas develop a sort of cult around their tokens which makes them infallible. It is an irrational attachment that each member manifests towards the common culture, generally based on humor. These cults have slogans and rules that all members must respect, for example “do not liquidate your tokens, regardless of the price variation”. Thus, community members are not investors, but believers.
- Viral nature: most meme corner creators keep their identities hidden. From then on, their project becomes a community affair where other members of the community are responsible for spreading the network. This community contains plural skills such as developers, content creators, active members.
- The story: each corner has a story to tell that creates attachment to the community. Often a simple mistake, an anecdote, a joke can unite a group of people around a similar project. This was the case of the famous Dogecoin (DOGE) where a simple amusing illustration of a Shiba Inu will attract crowds and raise the crypto to the head of the same coins. However, basically, DOGE had no serious plans.
- Valorization: when a community is dynamic and its growth curve is increasing, this motivates new entrants. On the other hand, in the event of a decline, new entrants who have not yet become sufficiently attached to the community will leave. To remedy this situation, the establishment of good practices is recommended, such as the conservation of tokens over the long term, the marketing of the same coins in premium OTC or even sales in stages.
Community validation in other crypto projects and lessons to be learned
The example comes to us from Asia where many startups FinTech see the community as a sure value for the success of cryptographic projects. The Singaporean company Tripio in particular had to seek the vote of its own community to be listed on Huobi Hadex.
The success of meme coins and the frantic search for community support by high-tech projects sufficiently demonstrate the essential role of the community in the success of a crypto project. In fact, most successful memes don’t have a known team, their success relies primarily on the community. Another lesson to learn is on the development of projects, the faster they are, the more successful they are, and the more we seek perfection, the further we move away from success. Just compare the spontaneity and flamboyant success of meme coins to the unrealistic expectations of NFTs.
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