From DOGE to GHIBLI, what should the next level of meme coins be like?

Meme coin should evolve into a 'social currency' with perception, fundamental support, and the ability to continuously create value.

Written by:LucaNetz, CEO of Pudgy Penguins NFT

Compiled by: Rhythm Little Deep

Editor’s Note: The article focuses on the rise of Meme coins and their potential and limitations. The author believes that, although Meme coins are a unique vehicle for cryptocurrency speculation mechanisms, their development is hindered by a lack of innovation, stagnation, and a reliance solely on hype. The article suggests that Meme coins should evolve into "social currency" to promote the development of the cryptocurrency industry, where social currency is an evolutionary form of Meme coins. Its success relies on execution rather than luck, and it may ultimately lead to new transformations in the cryptocurrency field.

The following is the original content (for ease of reading and understanding, the original content has been reorganized):

The cryptocurrency market has been like a roller coaster over the past 18 months, and in this chaos, we have witnessed the rise of Meme coins. While Meme coins are not a new phenomenon — in fact, they are one of the oldest forms of cryptocurrency — they have once again proven themselves to be the preferred vehicle for engaging in the most unique mechanism of cryptocurrency (speculation).

Although Meme coins are essentially pure and almost artistic, they also have a dark side. No, the problem does not lie with insiders or small groups—this is a common issue that plagues the entire cryptocurrency space. In my opinion, the real problem is the lack of effort, failure to seize opportunities, and people's complacency in building Meme coins. Perhaps I am too naive, but I refuse to accept that Meme coins stop here—at least I hope that's not the case.

I firmly believe that the Trojan horse for the popularization of cryptocurrency is intellectual property (IP), as it can establish credibility in areas lacking a trust ladder. Meme coins, like NFTs, are also a form of IP. Meme coins have huge opportunities to drive the development of the cryptocurrency industry by deeply penetrating the minds of ordinary people. However, they have not broken through the potential boundaries of their crypto-native roles, instead stagnating on the path of transcendence, lacking originality and being mediocre. I worry that if the status quo is maintained, they will do more harm than good. For this category to thrive, meme coins must evolve, and I firmly believe that the direction of evolution is to become social currency—tokens that will transcend lazy pump-and-dump schemes and transform into scalable, memorable, and beloved IP.

My assertion is not to replace Meme coins with social coins, but to add a final stage to their growth roadmap. Meme coins must graduate from being meaningless images on-chain and evolve into social coins that can drive the development of the crypto industry, possessing productivity and perception. I believe existing tokens belong to this category. This article will explore the current state of Meme coins, why successful projects should evolve into social coins, and the impact of social coins on the crypto space.

First, what is social currency?

Social currency is a tokenized asset that represents value within a specific community, typically used to incentivize participation, reward contributions, and enhance brand or community loyalty. Its operation is similar to traditional currency, but its value derives from social interactions, reputation, and influence.

In simple terms, social currency is a Meme coin with fundamentals — it is progressive, perceptive, and focused on nurturing a community that can continuously create viral effects, rather than extracting value from fleeting hype.

Meme coin vs Social Currency

Meme coins do not create viral effects—they monetize the viral effect, squeezing the heat until it dissipates. Social coins, on the other hand, possess perception and can actively promote their IP through various media, collaboration, and integration, continuously generating viral effects.

The typical lifecycle of a Meme coin:

Creativity → Token Issuance → Community Cultivation → Community Advocacy Narrative → Narrative Decline → Community Decline

The lifecycle of social currency:

Creativity → Token issuance → Community cultivation → Community advocacy narrative → Brand creation → Brand expansion → Ecological construction → Currency recognized and adopted globally

In my opinion, all social coins initially start as Meme coins, but as momentum accumulates, they must evolve into social coins. The image below accurately illustrates this process.

I love this image because it shows that social coins are not meant to replace Meme coins, but rather their evolved form. For me, social coins are Meme coins that have real value support. Anyone can issue a Meme coin, but only the best can inject real value into it.

If you believe that liquidity crypto assets will primarily belong to the retail asset class, then what you believe in is Meme coins and their success. If you think institutional capital will eventually flow into altcoins, then you must expect fundamentals to dominate. Social currencies combine the advantages of both — they have the retail appeal of Meme coins while also possessing the fun factor sufficient to attract institutional participation. In my view, social currencies blend the essence of Meme coins and utility tokens.

When analyzing the flaws of Meme coins, it is evident that they could have more potential, but we allow social consensus to convince ourselves that "Meme coins are supposed to be useless, and it has always been this way." I personally refuse to accept this as the future standard for the field. To understand my frustration, one must first break down the factors currently constraining Meme coins and how social currencies can resolve these issues.

Defects of Meme Coin

• Stagnation: The trend loses momentum as it fades.
• Stigmatization: 99% of speculators lose money, not long-term holders of assets.
• PvP Mode: Designed for short-term flow speed, it has become a game of musical chairs for existing users.
• Lack of infrastructure to attract new users
• No real faith support other than illusory narratives – no fundamentals
• Success often relies on fantasy and luck

Advantages of Social Currency

• Perceptiveness: Able to create trends and capture trends, maintaining continuous relevance.
• New Narrative: Combining the durability of Meme coins with real fundamentals that support growth, suitable for long-term holding.
• PvE Mode: Aimed at promoting the development of the cryptocurrency industry and attracting new users
• Continuously create demand through content planning, brand collaboration, and IP growth.
• Build real things that go beyond the industry, enhancing holder identity and belief - based on real faith.
• Success does not rely on luck or narrative, but has real fundamental support.

Perceptual Ability vs Non-Perception

For traders and investors, the core difference between Meme coins and social currencies lies in perception—the ability to maintain relevance over time. Social currencies have perception, whereas Meme coins do not, which is the key for traders to focus on. Perception = relevance = attention = potential. Unless you are a crypto legend (like DOGE), anything without perception will ultimately fade away.

Upon reaching this point, some may think: "I do not want Meme coin to bear any execution risk."

This psychological warfare began with NFT art collectors in 2020, and I am surprised that we have continued this narrative. My rebuttal is simple: things with no execution risk rely entirely on luck. Execution risk is the only risk worth taking, and if your position does not rely on execution, I can say with absolute certainty that, in 999,999 out of 1,000,000 cases, your performance will be worse than those who bet on execution (though I still wish you good luck).

The Future of Social Currency

To realize true potential, Meme coins need to evolve into social currencies in the final chapter of evolution. Tokens that create culture, nurture deep community bonds, and integrate into real-world applications will define a new era of cryptocurrency. The shift from stagnant speculative assets to a dynamic participatory ecosystem is not only necessary but also inevitable.

The question you need to think about now is: who will lead this transformation?