Memecoins have broken cryptocurrency—now they can fix it.

Memecoin has created unprecedented chaos in the cryptocurrency industry. Most analysts view this chaos as binary — some criticize memecoin as merely speculative assets, while others defend them for challenging low-high FDV tokens supported by VC. But we need a new perspective. A perspective that breaks the binary, accepting memecoins as speculative assets and declaring against VC tokens, leading to chaotic market scenarios. Acknowledging the potential chaos of memecoins, it defines chaos as the birthplace of a new token economy driven by utility. The chaos of Memecoin is good for the industry. Memecoin leads in market share for investors in 2024 and emerges as the most popular market story. Driven by easily understandable humor, a collective desire to imitate, and virality, the memecoin market has grown to $137 billion by December 2024. Unlike the high-value token launches of VC-backed coins that deny fair participation rights to retail investors, memecoins provide a level playing field. It is no surprise that over 42% of investors are first-time buyers when U.S. President Donald Trump and First Lady Melania Trump launched their memecoin. At Consensys 2024, Riva Tez from LayerZero Labs explained that memecoins help cryptocurrency win in the 'narrative battle' due to their resonance with ordinary people. Indeed, for memecoins, speculation is an important use case and an essential feature of its functionality. But empty speculation can also be a mistake. That is what happened with memecoin, when its market capitalization dropped 60% to around $53 billion in March 2025. Although external factors such as geopolitical tensions and global trade wars negatively affected market performance, some internal issues also contributed to the collapse of memecoin. Bad actors have deceived gullible retail investors and siphoned off funds through scams such as rug pulls, fake presales, pump and dump schemes, and phishing attacks. The collapse of the Libra token, endorsed by Argentine President Javier Milei, was the final nail in the coffin. It wiped out $4 billion in retail money and eroded investor trust. Everything was good with memecoin until it wasn't anymore. The market fell into complete chaos. But the chaos of memecoin marked the beginning of a much-needed change in the industry. Stakeholders realized that memecoin would not succeed in the long term with their speculative potential and as an alternative to VC tokens. The chaos of memecoins serves as a warning, albeit a delayed one. The tumultuous market has made investors and token developers realize the need for a utility-driven token economy to create sustainable value. Unless the core premise of memecoins is changed, stakeholders must use the chaos as an opportunity to bring utilities to the memecoin market. Harnessing the potential of chaos In the important speech of Memecoin Supercycle at Token2049 Singapore, Murad stated that the token is a product. In a chaotic memecoin market, the token itself is not enough to drive value for investors. Instead, token developers must leverage the product and find new ways to monetize them. Memecoin is still isolated in a closed-loop circular economy, with investors alternating between different tokens on trading applications to realize profits. To stabilize the chaos of memecoin, they need to diversify into yield farming options, staking, and liquidity staking to create new market liquidity. In other words, memecoins must escape the wisdom of a gambler in creating wealth for many generations to become a main product of DeFi. Investors must also stop viewing memecoins as chips in a casino and instead deploy them in the financial market. The chaos of memecoin shows the demand to expand from a product into a fully functioning cryptocurrency ecosystem. The product must be the foundation for building decentralized utility-focused applications to address real-world issues. For example, a memecoin project may launch a decentralized application or SaaS tool to serve a broader DeFi audience. The exchange could redirect profits into the memecoin in the form of buybacks, maintaining a stable capital flow to prevent sharp price declines. Most of the chaos of memecoin is the result of rug pulls and pump-and-dump schemes, eroding investor confidence in this type of asset. Memecoin projects can restore trust by building tools to address the pain points in the market, such as liquidity lockers. On another aspect, the memecoin community holds the key to chaos. High-paid project ambassadors, famous content creators, and influencers often do not care much about the project beyond their salaries. They will buy large amounts of tokens and sell them off at the slightest sign of a price collapse or insider information. Therefore, memecoin chaos is an important reminder to focus on building an organic and closely-knit community. This community will provide solid support for the memecoin ecosystem, strengthen its utility, and protect the token from sudden price movements. After the chaos settles down, meme tokens should not abandon their humorous index to mimic serious financial tools. Instead, the chaos is a call to combine utility with humor to develop a comprehensive and sustainable financial ecosystem. In the Pulitzer Prize-nominated book, 'Chaos: Making a New Science', James Gleick wrote, "Chaos is the science of process rather than state, of formation rather than essence." The chaos of memecoin is also undergoing a scientific process to become a meme economy based on utility from a completely speculative asset with no intrinsic value. In the cryptocurrency industry, the chaos of memecoins is a moment of reckoning. From here on, meme tokens will usher in a new era of blockchain finance. ⚠️IMPORTANT! If you like this topic, don't forget: • Follow me @blogtienso for more interesting content! • Like, share and leave a comment 💖 and don't forget to DYOR! #Write2Earn #Write&Earn $BTC {spot}(BTCUSDT)