Memes and Money: How Viral Culture is Shaping Cryptocurrencies
DOGE and PEPE made us do it.
by Menna Shanab, media writer
Memes have become an integral part of online culture, and the world of cryptocurrency is no exception. These visual or textual elements, often humorous or satirical in nature, communicate specific ideas or sentiments. Memes come in many forms, such as images, GIFs, videos, and catchphrases, and frequently go viral on social media platforms like Twitter, Reddit, and Facebook.
These tools connect a world partially obscured by technical jargon and the sometimes exclusive nature of crypto communities. Memes have evolved into a medium for people to express their emotions and manage the market's volatility in a lighthearted, humorous way. They serve as a universal language that resonates with a global audience, allowing complex ideas or emotions to be swiftly conveyed and readily understood by others in the community.
Like crypto, memes originated on the internet's fringes and have since become a widespread phenomenon. While some dismiss memes as frivolous or superficial, their impact on the cryptocurrency industry is undeniable. Memes promote the adoption of digital currencies, reflect traders' perspectives towards specific assets or coins, and can even drive up the value of tokens. They have become central to discussions surrounding digital assets, immortalizing significant events, shaping narratives about particular coins, and contributing to individuals amassing substantial wealth. They draw people into the fold and expose them to new ways of thinking.
Crypto memes initially captivate their audience with their whimsical nature while also conveying a deeper subtext and significance through the technology and culture underpinning them. Memes serve as an unobtrusive gateway to a group of individuals who might otherwise feel overwhelmed or disconnected from these emerging technologies.
Building Community One Meme at a Time
Memes have emerged as a form of community-building in crypto. They enable people to connect and share common experiences and emotions in a way that transcends language barriers. Even though most people in crypto speak English, everyone communicates in memes. The concepts and terms in the crypto world can be challenging to comprehend for newcomers, and memes simplify and explain them.
The crypto culture revolves heavily around online communities and social media, with memes being a common form of communication. They also serve as an outlet to mock the more outlandish claims and hype that can sometimes surround certain coins. Furthermore, they serve as a reflection of the crypto world, helping us navigate a landscape where each new day challenges the definition of the word 'unprecedented.'
Meme coins' affordability has made them popular among communities interested in developing the crypto space from the bottom up. Bitcoin's divisibility system, called "satoshis," reflects this idea, but it can still be confusing for many. Meme coins like Doge or Shiba Inu offer whole coin equivalents that are accessible to a broader demographic without the need for substantial investments or speculation. However, this accessibility can also leave inexperienced traders vulnerable to fraud and manipulation. It's important to remember that true wealth creation requires more than just owning a large number of meme coins.
Meme coins like Doge mock legacy systems, contributing to their popularity. Developed and supported by digital natives, they represent an alternative to the current monetary system.
Memetic Origins
Many are unaware that the concept of memes and the study of their transmission, known as memetics, dates back to the 1970s. In his 1976 book "The Selfish Gene," Richard Dawkins introduced the term meme with a definition that differed from its current association with social media. Dawkins initially conceived the meme as a cultural unit of information, analogous to a gene. Dawkins used several examples to illustrate the concept.
Traditionally, Dawkins' meme is interpreted as "an idea, behavior, style, or usage that spreads from person to person within a culture." Recently, memes have come to refer to amusing, widely shared, and often captioned images or video clips that become viral on the internet.
Memes originated in message boards like 4chan and Reddit, both of which were key platforms for the cryptocurrency community. After originating on these sites, memes moved to more popular and outward-facing sites like Twitter. Researchers found that after analyzing 160 million memes from Gab, Twitter, 4chan, and Reddit, most began on 4chan or Reddit.
Another notable platform that has made a significant contribution to the evolution and widespread circulation of memes is 9gag. Established in 2008, this social media website and mobile application have played a crucial role in the growth and diversification of meme culture. With its user-friendly interface, 9gag has attracted a diverse user base and has served as a source of inspiration and a fertile ground for the creation of fresh and popular memes. Particularly during the early stages of meme development, 9gag emerged as a platform that facilitated the exchange and creation of humorous content, including memes, funny images, and videos.
Memes have a dual role in the world of trading. They not only help to popularize coins like Dogecoin, but they also serve as a shorthand communication tool for traders who need to convey information quickly. With so many intelligent traders trying to process information rapidly, memes offer a convenient way to package complex ideas into easily recognizable images or phrases.
Memetic Nature of Crypto
Memes are an integral part of the story of blockchain, Bitcoin, and Ethereum. Although memes can create in-groups and out-groups, their universality and simplicity of communication give them potency. All currencies have been built on memetics, but crypto is now the closest to the source, often without pretending to have a material basis. Crypto rises and falls with belief and vibe, making it extremely volatile, with huge price surges and crashes.
Those who can grasp the memetic nature of not only crypto but all value can gain immense power by reading these natural flows of meaning. By leaving behind traditional approaches to fundamental problems, creators and entrepreneurs in the crypto world enter a new, darkened world that must be illuminated with new light. Cryptocurrency can be made less fragile through conducive and consistent memetic branding, such as potent colors, symbols, and motifs. Ultimately, a study of memetics is a study of virulence, which can help us understand why some businesses and art forms are more popular than others.
Going Viral
The contagious spread of memes plays a crucial role in the meteoric rise of many cryptocurrencies. When we talk about memes in this context, we mean symbols and language used in online communities. It's interesting to note that fields like psychoanalysis and occultism, which explore the irrational aspects of the human mind, also deal with symbols and language—similar to memes.
To better understand the economics of cryptocurrencies, it becomes important to develop a framework that considers the impact of memes. This is especially true because the cryptocurrency market is known for its highly unpredictable price changes and its tendency to be influenced by the behavior and actions of the community.
The irrational unconscious doesn’t trade in logic and manufactured systems but solely in spontaneous energetics. Economists have failed to make sense of these irrational processes, building their own esoteric methods while ignoring the archetypal patterns at play. Investors must be cognizant of this essential instability.
The inconsistent adoption of crypto endeavors has been a notable aspect of this new field: some projects explode in popularity while others never make their first step. This has been illustrated perfectly in the non-fungible token (NFT) market, where some low-quality projects can make millions while others make nothing. Ironically, the ugliness of some popular NFTs is precisely what makes them memetic, while the beauty of others is entirely mundane.
THE Doge
While some criticize meme-centric coins for nullifying the underlying purpose of decentralized technology, others see the value in the playful humor that rests on the surface of what most consider an intimidating and obfuscated subject matter.
One example of the power of memes in the cryptocurrency community is the rise of Dogecoin. Dogecoin was created as a joke in 2013 between co-creators Billy Markus and Jackson Palmer, based on the Shiba Inu dog meme that was popular at the time. However, the meme currency quickly gained a following on social media, and its value skyrocketed earlier in 2021, reaching an all-time high of $0.68 in May of that year, with a market cap of $88.8bn. Despite the fact that Dogecoin has no real-world use case and was never intended to be taken seriously, its value has been driven up by the power of memes and the hype generated by social media influencers.
Another contributing factor to the success and receptivity of DOGE was the pre-existing love of the coin's mascot - a popular meme of a Japanese Shiba Inu "doge" known for nonsensical phrases like "much wow" and "such tired." The meme was originally created in 2010 after Japanese kindergarten teacher Atsuko Sato posted several photos of her rescue-adopted Shiba Inu dog Kabosu to her personal blog.
During a time when the overarching seriousness of Bitcoin permeated the global crypto-discourse, the creation of a fun and friendly internet currency made to be as ridiculous as possible came as a breath of fresh air. People who wanted to easily mint and play around with something that cost fractions of a cent could do so with little risk.
The surge in the value of DOGE can be attributed to the combined factors of its meme-driven popularity and the amplification of its reach through the influence of celebrities. However, it eventually declined back to a very low price. Earlier this year, however, the value of the niche cryptocurrency Dogecoin surged by over 30%. This sudden increase in price followed an action by Elon Musk, who replaced the blue bird logo on Twitter with an image of a shiba inu, the logo of Dogecoin. This strategic move by Musk attracted considerable attention and created a buzz within the cryptocurrency community and beyond.
The case of Dogecoin illustrates how the interplay of memes, celebrity influence, and market dynamics can significantly impact the value and trajectory of a cryptocurrency. It highlights the unique nature of the digital asset market, where factors beyond traditional economic fundamentals can play a substantial role in driving price movements..
The rise of meme coins such as DOGE indicates the crucial role of communities in the success of various protocols, dApps, or NFTs. However, memes play a vital role in cementing and strengthening these communities, as well as disseminating their thoughts and ideas globally.
Remember the GameStop Frenzy?
Another example of the impact of memes on cryptocurrencies is the GameStop frenzy in January 2021. The GameStop saga was originally dismissed by mainstream media as a bunch of Reddit degenerates shilling their latest group bet, but it ended up being a sharp criticism of a centralized and privileged financial system. The GameStop meme frenzy captured the news cycle for weeks at a time and alerted a new wave of people to hedge funds, shorting, ghost shares, and other problematic elements of a flawed system.
Meme-Forward
In the crypto-economics world, memes fulfill a dualistic and, at times, polarizing role. On the one hand, some purists criticize meme-centric coins for nullifying the underlying power and purpose of decentralized tech. On the other hand, there is undeniable value in the playful humor that rests on the surface of what most consider an intimidating and obfuscated subject matter.
In this digital age, where information travels at the speed of light and attention spans are fleeting, memes have emerged as a transformative force. They not only reflect the pulse of the crypto community but also have the power to shape narratives, challenge traditional systems, and drive the adoption of new ideas. Whether it is through their ability to simplify complex ideas or their power to critique existing systems, memes play a crucial role in shaping the future of decentralized finance.
In the dynamic world of cryptocurrencies, memes offer both a lighthearted gateway for newcomers and a powerful means of expression for seasoned traders. Their influence will likely expand, pushing the boundaries of traditional economic fundamentals and challenging established norms. The future of memes holds the potential to reshape not only the crypto-economics world but also the broader cultural and social landscape.
Therefore, it is crucial for market participants, investors, and enthusiasts to recognize the memetic power within the crypto ecosystem. Embracing this aspect can help us better understand the dynamics of value creation, build stronger communities, and foster innovation. By acknowledging the potency of memes and their ability to capture the essence of a rapidly changing world, we can harness their potential to shape a more inclusive and resilient future for cryptocurrencies and decentralized technologies.