Crypto venture capitalist anticipates emergence of highly profitable memecoins during this market cycle.

Memecoins that can tap into deeper aspects of “culture” during this cycle have the potential to be much more lucrative than traditional meme tokens based on animals and simple jokes, according to Andrew Kang, co-founder of Mechanism Capital. Kang highlighted the rise of a new class of “culture coins” – memecoins centered around cultural values such as politics, brands, religion, and lifestyle – which he believes have the ability to go viral. These coins can represent various ideologies, ranging from politics and religion to consumer goods and sports. Kang specifically mentioned two Solana-based memecoins, Jeo Boden (BODEN) and Doland Tremp (TREMP), as examples of culture coins that grew rapidly out of communities with “anti-woke, anti-Biden, and right-wing views.” BODEN has experienced massive growth since its launch on March 9, with gains of over 700,000%. It currently has a market capitalization of $473 million, making it the 191st largest token by total value. TREMP, a parody coin based on Donald Trump, has also seen significant gains since its launch on February 27, although not as much as BODEN. It currently has a market cap of $73 million. Kang also suggested that memecoins based on successful consumer brands, such as ZYN and MOUTAI, could benefit from the association with those brands and gain viral popularity. Kang compared investing in memecoins to investing in regular assets that generate high returns. However, opinions within the crypto industry are divided on the impact of memecoins. While some, like BitMEX co-founder Arthur Hayes, view them as a positive for blockchain networks, others see them as a speculative mess that goes against the principles of blockchain technology. Nevertheless, memecoins have proven to be the most profitable sector within crypto in the first quarter of this year. According to a market report from CoinGecko, the top 10 largest memecoins recorded an average gain of 1,312.6% for holders in Q1 2024. CoinGecko analyst Lim Yu Qian stated that the memecoin narrative was significantly more profitable than other narratives in the crypto space during that period.