VanEck portfolio manager Pranav Kanade highlighted four key aspects of #MemecoinsđŸ€‘đŸ€‘ that should serve as inspiration for all crypto projects.

Key Features of Memecoins

In his response to Murad Mahmudov’s panel at the Token2049 conference, which focused on the “ #MemecoinSupercycle ,” Kanade stated that memecoins have clear product-market fit with retail, and one of the reasons for their success is simplicity. He added:
“Many teams are overengineering their token, forgetting the basic equation: time + capital + attention = scarcity.”

Kanade pointed out that more than 600,000 tokens were launched in 2023, increasing competition for key resources. Therefore, #Cryptoprojects should adapt their strategy by creating simple token designs, having a clear product vision, and demonstrating how the execution of that vision brings value to token holders.

Issues with Locked Tokens

Kanade also highlighted the issue of “locked” tokens allocated to early investors. This is a common concern for traders considering long-term investments, as they fear large sell-offs once the tokens unlock.

Projects with a large number of locked tokens often face growth challenges when unlocking occurs, and early investors sell off their holdings for profit. This model, known as “low float” with high fully diluted valuation, was common before 2024.

In contrast, memecoins typically use a “high float” model, where the entire circulating supply of tokens is unlocked from the beginning. This model, highlighted by Mahmudov in his panel, is one of the reasons for the success of memecoins.

A New Approach to Tokens

Kanade suggested that crypto projects reconsider their token creation approach and consider adopting the “high float” model with a small number of locked tokens for early users and investors.

Additionally, he recommended implementing a hyper-transparent approach, which would involve disclosing the cost basis of token purchases made by venture capital funds. Such information is often difficult to find and rarely disclosed publicly, but it could increase trust in the project.

#memetokens , #memecoin🚀🚀🚀


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