Attention is the next commodity.
Meme coins redefined how we think of crypto, and the attention economy is redefining how we think about value exchange and money flow. 📈
Contents:
To begin with, the attention economy is WAY bigger than just memes...
As Social Media grew like a mushroom, what used to be the internet became the wild world of the attention economy.
It is a digital landscape where your attention becomes the new currency, and platforms are competing to grab your eyeballs, treating your attention like it is a gold mine.
Meme coins and NFTs have become the poster children for how effectively this new economy can turn attention into real money.
But meme coins are just the beginning; let’s dive into why this shift is happening and why this is only the tip of the iceberg.
Web2 has been running on the fumes of old-school advertising models. It's all about collecting as much data on you as possible to hit you with targeted ads.
But let's be real—this approach sucks at capturing the true value of your attention.
Enter Web3, the next-gen internet that promises to do things differently.
Web3 platforms are using tokens like meme coins and NFTs to create "attention assets." These assets can measure and capture attention in real-time, letting users invest in what’s trending.
It’s a more direct and efficient way to monetize your focus. Buying a meme coin, it ain't just about getting a digital token; it's more about making a statement about what’s hot and culturally relevant.
Crypto is revolutionizing the attention economy, providing more efficient markets and tools to capitalize on this new gold rush.
Platforms like FantasyTop and FriendTech are creating financialized markets around attention, --- allowing users to bet on which assets, creators, or content will blow up next.
Meme coins have slowly even become a go-to-market strategy. They bootstrap initial attention, forming speculative communities that can grow into something real and optimally sustainable.
It’s a win-win (or at least gambling with better R/R than lottery tickets): everyone in the value chain benefits from these attention assets, whether they created the meme or jumped on the bandwagon early.
Meme coins have exploded onto the scene, capturing attention with their humorous and satirical branding. These tokens leverage the viral nature of memes to generate hype and community engagement.
Dogecoin is the perfect example: its value skyrocketed thanks to high-profile endorsements, not its technical merits.
This attention-centric model is a departure from traditional asset valuation methods, which rely on fundamentals like cash flows and risk premiums. In the world of meme coins, the primary driver of value is the community's engagement and the token's cultural relevance.
An interesting example could be $NPC with its 14 billion hashtag views on TikTok, which can be viewed as a fundamental value within the attention economy.
We’re in the middle of a meme coin supercycle. Unlike previous cycles, when meme coins peaked and faded, this time—in our opinion—they’re here to stay. Meme coins are evolving into a legitimate asset class within crypto, offering asymmetric return potential.
They (ideally) tick all the right boxes for investors: fair launches, simple narratives, better transparency, community-centric approaches, and no information asymmetry. These tokens level the playing field, making it easy for anyone to jump in and participate.
This, of course, doesn't mean there are no bad actors, and meme coins without culture mainly focus on value extraction.
Meme coins are also playing a crucial role in driving blockchain adoption (this is something that ex-eth core dev Lane Rettig mentions in one of his blog posts).
Their popularity also helps onboard new users who might otherwise be hesitant to dip their toes into crypto.
On platforms like Solana, meme coins like BONK or Dogwifhat have become integral to the ecosystem, demonstrating how these tokens can stimulate network activity and community engagement.
/The Value Between Meme Coins and Their Native Networks - Franklin Templeton ($1.5T AUM/
It's not by accident that Coinbase +@Baseis using $BRETT as a vehicle to onboard new users to their ecosystem or the retail attracting strategies of Telegram's redefines .
On the other hand, L1-s without these cultural formations will potentially become laggards regarding retail adoption within the attention economy game... (ICP? :P)
In the crypto world, there's a saying: "price is news." When a token’s price spikes, it grabs attention, drawing in more participants.
But flip that around, and you get something even more profound: "News is price."
In the crypto space, the value of an asset is driven by the community's time, effort, and capital investment./An active community can even turn around a "dead" project (Community Takeovers - CTOs)/
The internet’s ability to enable two-way information transmission is turbocharged by cryptocurrencies, which facilitate two-way value transfers.
Think about the GameStop saga—retail investors used social media to rally against Wall Street, driving the stock price sky-high.
This kind of collective action is the beating heart of the attention economy.
The future of crypto consumer applications is all about seamlessly blending content and commerce.
This is where "Publisher Exchanges" came into the picture, platforms that eliminate the boundaries between creating content and trading assets.
These platforms allow users to issue and trade assets directly within the app, creating a holistic experience that captures and monetizes attention.
Communication tools like Telegram are already integrating transaction capabilities within their chat platforms. Similarly, social media giants like Instagram and TikTok are essentially marketplaces where creators compete for attention, monetizing it through sales and brand partnerships.
The next big thing in advertising could be Direct Value Issuance (DVI), where advertisers give value directly to users instead of bombarding them with ads. Imagine a sports betting platform airdropping $50 worth of credits directly to NBA fans instead of running annoying ads between game highlights.
This model also cuts out the middleman and rewards users for their attention.
Information markets—prediction markets (mentioned by Vitalik Buterin as well), sports betting platforms, and alternative data providers—can also get a boost from crypto.
By financializing information based on its quality or embedding markets into information-sharing platforms, these markets can help sift through the noise to find the signal.
Tokens also enable communities to focus resources on novel issues and coordinate real-world actions. Projects like ConstitutionDAO and VitaDAO show how tokens can pool capital for collaborative ventures, supporting initiatives that traditional funding mechanisms might overlook.
We’re on the cusp of a golden age of experimentation in consumer crypto applications.
Developers have a clean slate to combine distribution and transactions in new ways.
These crypto-native applications will prioritize attention, capital formation, and coordination, unlocking new economies of attention where like-minded groups can exchange value seamlessly.
The rise of the attention economy signals a profound shift in how we perceive and assign value.
At its core, this economy challenges traditional financial systems by emphasizing the collective power of attention and cultural relevance.
Meme coins, as a prime example, serve as a form of rebellion against conventional financial norms, offering a decentralized and democratized approach to wealth generation.
They highlight the power of collective belief, where a community's engagement can drive the value of an asset.
This shift towards an inclusive financial system allows anyone to contribute to and benefit from the creation of value, redefining the principles of wealth and value in our society.
The future of meme coins looks bright as they continue to capture the zeitgeist of the digital age. With platforms like Base and emerging trends in decentralized finance (DeFi), meme coins are poised to further integrate into the broader cryptocurrency ecosystem.
Projects on platforms such as Farcaster and Jupiter are exploring new ways to leverage the attention economy, embedding meme coins into innovative financial products and services.
While meme coins have shown the immense potential of the attention economy, they are just the beginning.
The real powerhouse in this space are creators
— the individuals and influencers who generate and direct massive waves of attention. ✍️
/Influencer Marketing Forecast - Goldman Sachs/
As the backbone of the attention economy, creators are poised to gain even more control and influence, especially with the advent of Web3 tech.
The rise of Key Opinion Leaders (KOLs) in the Web3 space is the best proof of the increasing power of creators.
KOLs, who are essentially influencers with a significant following and expertise in specific niches, are gaining more market share and influence.
They have become vital in driving the adoption of new technologies, products, and platforms.
KOLs leverage their credibility and reach to promote projects, educate their followers, and create engaging content that captures attention.
Their endorsements can significantly impact a project's success, highlighting their critical role in the attention economy.
This dynamic between crypto projects and KOLs is extremely inefficient (for now) and lacks transparency.
As KOLs continue to grow in influence, they are inevitably transforming both the crypto industry and the creator economy, making it even more creator-centric and slowly gaining market share from VCs as well (fundraising).
Meme coins are just the beginning. They prove that the attention economy is real and powerful, but they’re the fastest horse only in this current race.
The hidden power lies with creators and the broader attention economy evolving around them.
This new digital frontier redefines how value is created, captured, and distributed.
Whether you're in it for the memes, the money, or the movement, there’s no denying that the attention economy is here to stay.