Crypto VCs Think These Memecoins Have the Best Upside
Crypto VCs have identified culture coins as the best performing class of memecoins in the current cycle as more stakeholders see meme tokens as valuable assets.
Uno…
Have you been thinking of buying memecoins but don’t know which ones to buy? VC firms in crypto now have some not-a-financial advice for you.
Mechanism Capital co-founder Andrew Kang has said that culture coins are the best type of memecoins in this bull cycle, as they are more likely to go viral and increase in value than other meme tokens.
In a post on X, Kang explained culture coins as tokens embodying the views and beliefs of real-world communities.
Kang believes these coins enjoy the advantage of having strong pre-existing communities, which can help their price trajectory.
“Coins that embody the beliefs of real world communities that have shared values, identities, lifestyles, political views - Culture Coins.”
He gave examples of such memecoins, pointing to TREMP and BODEN as memecoins that capitalized on existing beliefs and lifestyles. Both are Solana based memecoins that have increased over 700x since launch.
Culture Coins, Not Memecoins
The success of memecoins in this cycle has redefined how people perceive the tokens. After years of being seen as purely joke tokens meant for speculation, more people now consider them a crucial element of the ecosystem and integral to the crypto culture.
Several stakeholders now refer to them as Culture Coins and point to the importance of these tokens in building and fostering communities.
Kang also agrees with this designation, noting that communities are the most important thing for culture coins. The stronger the community's values and identity, the more likely it is to talk about the token and make it go viral.
“The assets that pump the hardest (stocks, real estate, metals, coins, etc) are simply assets that people can best believe in.”
Crypto VCs Investing in Memecoins
Meanwhile, all the hype about memecoins has also influenced Crypto VCs, who are now investing in the tokens.
Kang disclosed that his firm has acquired several culture coins that will likely have significant upside in the future.
However, he is not the only one who sees memecoins as net positive. Bitmex co-founder Arthur Hayes also warned that people should not simply label memecoins as stupid and valueless.
He argued that they can add value to the blockchain where they are launched by attracting more users and developers.
This is similar to the reason the Avalanche Foundation gave for buying memecoins launched on the network with its Culture Catalyst fund.
Interestingly, memecoins have also proven to be good for short-term profits. According to IntoTheBlock data, the combined market cap for memecoins has tripled in 2024, exceeding $56 billion. Several coins, including the OGs and new entrants, have seen significant gains.
Nevertheless, memecoins still remain a very risky asset with a high chance of investors suffering massive losses.
Despite some efforts to make these tokens safer, the high number of memecoins created daily across blockchain networks means that over 99% would likely fail. Therefore, it is essential to do due diligence before investing in any meme token.
