Meme is the happiest Ponzi scheme—no one wants the fun to end
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Meme is the happiest Ponzi scheme—no one wants the fun to end
Although the currency may change, the temptation of getting rich quick will never disappear.
Navigating Web3 tides with focused insightsAuthor: Crypto, Distilled
Translation: TechFlow
Meme coins are the world's fastest Ponzi schemes. Whether you're into dog coins or cat coins (or neither), this is hard to deny.
Yet after a few big winners like $WIF and $PEPE, you might wonder:
Is the party nearly over—or just getting started?
What Is a Meme?
The term "meme" was coined by Richard Dawkins in his 1976 book *The Selfish Gene*.
It comes from the Greek word "mimema," meaning "to imitate."
A meme is an idea, behavior, or style that spreads through culture via imitation.
An idea, behavior, style, or usage that spreads from person to person within a culture
The Viral Spread of Memes:
From politics and sports to entertainment and finance, memes are spreading virally.
Due to their speculative nature, they have strong synergy with cryptocurrencies.
The Heart of Memes:
Memes have always been part of the lifeblood of crypto enthusiasts.
They've shaped the entire culture of the cryptocurrency space.
From "WAGMI" and "Wen Lambo" to "Choose Rich" and "In it for the tech"...
Memes are central to Crypto Twitter (CT).
Acceleration Point:
Despite deep historical roots, 2021 was a turning point.
The pandemic, $GME, and massive money printing created the perfect storm for meme mania.
From Joke to Giant:
Fast forward to 2024, meme coins continue to explode.
For the first time, meme coins have become the most popular category in crypto.
Memes accounted for about 23% of page views on @CoinMarketCap, exceeding 25 million in June alone.
The Fastest Ponzi Schemes:
Ironically, memes thrive precisely when market maturity is expected.
We have $BTC ETFs and new technologies, yet investors still choose the dark side.
As GCR put it, "Long human desperation, greed, and decay."
@GCRClassic: "Flying to Macau or Las Vegas is often too expensive for ordinary people. With ample disposable cash and high macro risks, decentralized casinos and decentralized Ponzi schemes are always the quickest options. I'm long on humanity's performance in despair, greed, decay, loneliness, and being trapped in the metaverse."
From Joke to Wealth:
Top memes not only dominate attention—they dominate returns.
Meme coins are the highest-performing sector, up 72% year-to-date (sector-weighted average).
(Credit @artemis__xyz)
Dominant Ecosystems:
Most leading meme coins are built on $SOL or $ETH.
However, in this cycle, the $SOL ecosystem has gained more attention than $ETH.
Mindshare Dominance:
Since October 2023, $SOL and its meme coin ecosystem have gained momentum.
While $SOL hasn't surpassed $ETH in market cap, it now matches $ETH in Google search interest.
"Casino" Chains:
Within the $SOL ecosystem, meme coins symbolize a frenzied chase for speculative assets.
Massive inflows of liquidity have given $SOL a casino-like atmosphere.
Participants seem to favor high-risk assets over traditional, slower-moving projects. (Credit @CoinMarketCap)
What’s Driving the Meme Boom?
Retail investors increasingly favor quick returns over VC-backed projects with high fully diluted valuations (FDV).
Market participants are fatigued due to project saturation (many with high FDVs).
Low mainstream adoption and lack of breakthrough consumer applications further exacerbate this trend.
The Meme Coin Black Hole:
According to CoinMarketCap, new meme coins are gathering momentum faster than in any previous cycle.
Even in the AI category, many popular projects are "memefied" AI tokens.
Memes are like a black hole, sucking in everyone who once claimed to be "in it for the tech."
Dog vs. Cat:
An interesting phenomenon in meme coins is the rivalry between dog and cat coins.
Cat coins have outperformed so far this year, but dog coins still hold higher market caps.
Yes, this is the current state of crypto.
(Credit @MessariCrypto)
Profiting from Memes:
While many view memes as mere lotteries, the space is actually more nuanced.
Those skilled at spotting cultural trends early may succeed.
However, without strong trading skills or a solid social network, your odds aren't great.
Potential Risks:
Profiting from meme coins relies on the extremely risky "greater fool theory."
Investment enthusiasm can vanish as quickly as it arrives.
Example: The "quadrillionaire" phenomenon.
Final Thoughts:
While the coins may change, the allure of getting rich quick never fades.
Whether or not you choose to gamble, the casino will keep running.
Even if you dislike memes, understanding why they succeed is valuable.
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