# The Rise of Meme Coins: Navigating the Attention Economy
By Seong-Woo Lee, Block Media
The recent fervor surrounding meme coins is undeniable. However, lacking distinct technical features, it is challenging to determine which meme coin to invest in or understand the criteria for a sustainable meme coin. To make such judgments, one must first grasp the concept of the ‘attention economy.’
# Understanding the Attention Economy
The attention economy refers to an economic structure where value is generated based on the extent of attention gathered. This is widely utilized in social media platforms like TikTok, Instagram, and YouTube. These platforms monetize users’ time and attention through advertising.
However, in traditional models, most revenue accrues to the platform, with users receiving rewards disproportionate to the value they generate. Moreover, the indirect nature of advertising fails to fully capture the value of attention.
Meme coins emerge as an alternative that transcends these traditional limitations. Unlike general tokens, meme coins characteristically lack intrinsic utility. They form communities around holders who create and distribute content focused on specific memes. Community members actively engage in activities such as establishing foundations, sending tokens to celebrities, and conducting fundraising drives, all to increase interest in the meme coin.
As community activity intensifies and the memes they create gain popularity, interest in the meme coin surges, translating into economic value and price appreciation. Thus, meme coins directly reflect the value generated by their communities.
# Community at the Heart of Meme Coins
The success of a meme coin heavily relies on vigorous community participation and the attention they generate. This interaction often occurs via platforms like Twitter and Telegram and contributes to the token’s value appreciation. Communities supporting meme coins can be broadly classified into two types: developer and influencer-driven communities, and decentralized, community-led efforts.
## Developer and Influencer-Driven Communities
In this model, token developers or prominent influencers lead initiatives even before the token’s launch. They create significant value through systematic marketing and capital investment, facilitating quick market entry and early public interest.
However, heavy reliance on specific individuals poses risks. If these leading figures lose interest or involvement, maintaining community cohesion becomes challenging. There’s also the risk of unfair insider trading, which may harm small investors, a situation known as a “Cabal.”
## Decentralized Community-Led Models
Here, communities operate without initial foundations. Sometimes, if the developer sells off initial token holdings (a Dev sell), an active community can assume control—a process known as a Community Takeover (CTO).
CTO meme coins benefit from a lack of downward pressure due to developers or early team members selling their holdings. As long as the community remains active, the project is likely to recover and thrive, creating a healthy ecosystem. However, if community engagement wanes or meme popularity dips, the community may disband; thus, caution is necessary.
# Deciding on a Meme Coin Investment
Investors might wonder which token to choose. Binance CEO He Yi offers insights, reflecting on past undervaluations of memes like PEPE and Shiba Inu (SHIB). Yi acknowledges the challenge of evaluating meme coins’ potential sustainability and points to prioritizing projects with high token dispersal and low market caps as Binance’s strategy.
Based on Yi’s view, preference should lean towards decentralized meme coins with dispersed ownership, akin to the CTO approach.
# An Example of CTO Meme Coin: Neiro
Reflecting Yi’s perspective, let’s examine Neiro, a meme coin inspired by the newly adopted dog of the late Dogecoin model dog, Kabosu.
Following Neiro’s adoption, multiple meme coins emerged, particularly on the Ethereum network, demonstrating contrasting approaches: CTO and the Cabal. Two Neiro coins launched within 10 seconds on Uniswap, with the first sending 4 percent of total supply to Ethereum co-founder Vitalik Buterin. This garnered attention but was soon overshadowed by the Cabal Neiro’s price surge under influencer support.
Following the original Neiro’s developer exit, its community took over, declaring a CTO. Vitalik Buterin’s sale of his Neiro holdings, donating proceeds to an animal welfare charity, further boosted CTO Neiro’s popularity, solidifying community strength and transparent growth.
Ultimately, it was the CTO Neiro that Binance listed, enjoying higher market valuation.
# Factors Behind Neiro’s Success
Post-Binance listing, Neiro reached a $1 billion market cap, driven by a strong meme and a solid community. Leveraging Dogecoin’s narrative, Neiro attracted early public interest and sustained it.
Neiro’s community-led social and fundraising campaigns emphasized transparency, fostering investor trust. Initiatives aligned with Vitalik’s charitable donation reinforced Neiro’s positive image.
In summary, Neiro exemplifies how a powerful meme and community-driven structure underpin meme coin sustainability and market value, suggesting meme coins could evolve from fleeting trends into significant economic and cultural phenomena within the attention economy.
