VanEck Digital Assets Alpha Fund portfolio manager Pranav Kanade advises crypto teams to prioritize alignment over pursuing quick-profit schemes. Memecoins can serve as a foundation for a better web3 ecosystem, as Kanade believes their viral nature offers unique advantages for market participation and distribution.

Kanade suggests that all founders and teams should consider: “What aspects of memecoins can we mimic, given their clear product-market fit with retail?”

Key Points from Kanade:

  • Simplicity: Many teams over-engineer their token, failing to realize that time, capital, and attention are scarce resources.
  • Transparency: Disclose venture capital investors’ cost basis, which is often difficult to find.
  • Alignment: Ensure alignment between project teams and token holders for long-term success in the competitive crypto market.

In an X post on Oct. 8, Kanade urged crypto entrepreneurs to take lessons from memecoins, citing their product-market fit with retail investors. He emphasized simplicity, transparency, and alignment between project teams and token holders as key factors for long-term success in the increasingly competitive crypto market.

“Many teams over-engineer their token,” Kanade said, noting that approximately 600,000 tokens were launched last year. He argued that the ease of launching tokens has only increased competition for these limited resources.

Kanade outlined several principles for success:

  • Simple token design and a clear vision
  • High token floats and low entry valuations to attract more retail participation
  • Transparency, including disclosing venture capital investors’ cost basis

Kanade stated, “We only get rich if we hit our goals and ship products as promised.”

Memecoins have also captured the attention of other investors, particularly as their rapid rise in popularity and market value continue to draw interest from both retail traders and venture capitalists.

Memecoins: A Trojan Horse For Web3

Memecoins have been gaining significant attention. Are they a bubble, or can they add real value to web3? Here are three critical insights to understand memecoins and their vast potential:

  1. Viral Marketing: Memecoin communities often use viral campaigns to boost exposure.
  2. Real-World Promotions: Some memecoins even fund real-world promotions, such as advertising on prominent venues like the Las Vegas Sphere.
  3. Fungibility: Memecoins’ fungibility allows broader ownership distribution compared to traditional non-fungible tokens, potentially bringing new users into decentralized finance and the broader web3 ecosystem.

“Memecoins’ fungibility allows broader ownership distribution compared to traditional non-fungible tokens,” noted Pantera Capital’s Paul Veradittakit.

Veradittakit emphasized their power in capturing attention and distributing ownership, making them a valuable component of the web3 ecosystem.

For more insights and news on the crypto world, visit Global Crypto News.

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