Why Memes May Be The Most Valuable RWAs We Ever Tokenize

CN
22 hours ago
The following opinion editorial is a guest post written by Solo Ceesay, CEO & Co-Founder at Calaxy.

Gensler has returned to MIT, where he taught before joining the SEC under the Biden administration – where he’s now focusing on fintech and artificial intelligence. It has caused a stir within the crypto space, with Gemini co-founder Tyler Winklevoss vowing “not to hire any graduates” from MIT; not even for the summer intern program. This reactionary move comes after crypto businesses faced over $6 billion in SEC fines during Gensler’s reign. And that’s not to mention the hefty unrecoverable legal fees that went along with their troubles.

A week after Gensler’s departure, Trump surprised the public with the launch of his signature memecoin, coinciding with his inaugural star-studded Crypto Ball. While there are mixed feelings about the roll-out given the altcoin’s shaky performance since launch, Trump’s crypto endeavors and his overlapping executive orders undeniably mark the beginning of crypto’s “Golden Age”.

Even with the Golden Age underway, I suspect there’ll be quite a bit of bureaucracy to wade through before homes and stocks are tokenized on the blockchain, but the rise of memecoins might play a bigger role than expected in getting us there. Platforms like pump.fun, designed for consumer use, have made tokenization so easy that a kid could do it – inadvertently opening the door to the tokenization of the most valuable, but intangible asset of them all: human consciousness.

This cycle’s memecoin mayhem is eerily similar to the 2017 crypto ICO craze. Not only that, but it’s also a byproduct of the fact we have shockingly few novel applications and use cases for blockchain technology. That’s not a comment on the talent of the builders and companies that weathered the bear market but rather an observation to thwart the misguided industry insiders that desperately wish for a memecoin bubble pop. Be careful what you wish for! Memes dominate mindshare and are a tried and tested on-ramp into the asset class for retail investors.

I’d argue that we’ve yet to truly see a widely adopted crypto product that is actually great because of its web3 infrastructure. There are a range of reasons for this, but the lack of clarity around regulation and the unjust targeting of the space ultimately weighed down innovation. Many promising startups and builders lost both their resources and their will to keep going, representing a blow to the tech industry as a whole.

Critics of memecoins often suggest that they’re a breeding ground for rug pulls and scams. To a certain extent, I’d have to agree. Under the imminent relaxation of the regulatory regime, market education should undoubtedly be a core focus of Crypto Czar David Sacks. While most in the space are grateful for Sacks’ claims that memecoins and non-fungible tokens (NFTs) are indeed collectibles, not securities, there must be market standardizations and practices in place – just as there are for all other consumer markets if adoption’s the goal.

Finally, to those who question the value of our creativity – the very thing that colors our existence on the web – memecoins, and specifically, the tokenization of the intangible unlocks infinite value for creativity.

This might be shocking to the hardcore crypto heads who read this, but there are only so many different ways you can construct a blockchain. There are only so many buildings, items of clothing, or anything physical that we can tokenize. While space is expanding, the Earth as we know it, is finite. By tokenizing what we can’t see, we’re allowing creatives an avenue to contain and monetize their limitless intellectual property, infinitely expanding the market of tokenized assets altogether.

Recently, the market capitalization of layer-1 blockchains has ranged from 25-30x larger than memes. The justification for this is that most memes are truly valueless. With more than 20,000 new memecoins created daily on pump.fun alone, it will always be the case that most coins will go to zero. Just like most pictures on Instagram don’t go viral, and most videos on TikTok are flops. But that doesn’t deter anybody from getting involved. With low barriers to entry, one can only expect greater traffic.

Another consideration is that many layer-1 blockchains may well become redundant and obsolete once the market determines where our decentralized future will be hosted. I’d imagine US-based layer-1s have the best shot at sticking around, giving Trump’s executive orders included a digital assets stockpile. Not only that, but the administration is incentivizing this further with the announcement of 0% capital gains taxes on US tokens.

When Satoshi set out the vision for Bitcoin, his mission was to guarantee anybody access to sound money, anywhere in the world. This is a liberty many aren’t fortunate enough to have yet. Tokenization presents further improvements to markets, data systems, and more, but we’ve yet to see one of the biggest opportunities of them all: the tokenization of the creator economy. The hysteria around the potential TikTok ban illustrates just how little agency the internet’s users have. In a matter of moments, years of hard work and commitment flashed before the eyes of America’s creators. Many of these people had already struggled to monetize their content.

Memecoins and community tokens present a new way for creators to not just build but own their brand. A revamped crowdfunding model for the digital age, tokenization allows creators to monetize both their likeness and greatest creations. Vine co-founder, Rus Yusupov, launched $VINE token to nearly $500 million market capitalization under the guise of bringing back everyone’s favorite video-sharing app from the early- to mid-2010s amidst the TikTok controversy, showcasing just how powerful this technology is.

What I said about most memes being valueless still applies. The memes that have, and will, stand the test of time are the ones that evolve to something greater than a JPEG and some metadata. A good meme goes beyond itself, creating inclusivity with the potential for added perks and benefits. That’s in addition to the vibes – and it will ultimately allow memes to perform over time. Perhaps we’ll call that memetility.

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