Memecoins: Beyond Laughs, Utility Drives Value

Beyond Memes: Memecoins with Utility Value

The crypto space is a dynamic interplay of narratives, with value driven by various factors. While memecoins and AI tokens have gained traction, the utility of these assets is a crucial aspect to consider. Solana (SOL), for instance, has benefited from the traffic generated by memetic assets like Fartcoin (FART) and Bonk (BONK), as SOL is required to trade with these assets. Additionally, SOL's utility is further enhanced by its role as the platform for Virtuals Protocol (VIRTUAL), an AI agent platform expanding from Ethereum's Base to Solana.

The question arises: should crypto investors view some memecoins as utility tokens with greater staying power beyond short-term speculation? The utility of a token, especially a memecoin, is best understood as a secondary purpose that can independently drive value. In the case of Official Trump (TRUMP) and Hawk Tuah (HAWK) tokens, their utility lies in monetizing their respective followings, providing a liquidity pool as a baseline. However, the primary utility of most memecoins is the monetized following itself, which can be boosted by secondary purposes like using the memecoin as a currency for purchases.

Shiba Inu (SHIB) is a prime example of a memecoin with robust utility. With a finite supply and a large market cap, SHIB token-holders engage in burn drives to increase scarcity. SHIB is used in ShibaSwap decentralized exchange (DEX) and as a utility fee token, with a portion of fees from trades going to token burns. Additionally, SHIB is accepted as payment on eight online platforms, further bolstering its staying power. Other memecoins that fit the utility bill include Pepe (PEPE), Bonk (BONK), and Floki (FLOKI), which are cheap and have projects that elevate tokenholder participation.

In conclusion, while memecoins are highly speculative assets, investors should consider their utility value when taking exposure. By understanding the secondary purposes and utility ecosystems of these memecoins, investors can make more informed decisions and potentially identify safer memecoin investments.