Meme Coins: Key Takeaways for Crypto Projects from VanEck

Pranav Kanade, Portfolio Manager at VanEck, shared insights on how the crypto industry can take cues from meme coins.

His comments emerged during a discussion at Token2049, where Murad Mahmudov spoke about transitioning from Bitcoin maximalism to the allure of meme tokens. This conversation touched upon the growing interest in a so-called “meme coin supercycle.”

Kanade observed that meme coins resonate particularly well with retail investors due to their straightforward appeal. He criticized many crypto projects for overcomplicating their tokens, noting that time, capital, and attention are finite resources. With a staggering 600,000 tokens introduced this year alone, he urged projects to simplify their designs and clarify their objectives to effectively engage token holders.

On the topic of token supply, Kanade recommended minimizing the locked tokens distributed to early investors to mitigate potential market volatility when these tokens become available.

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He pointed out that many older tokens have a “low float” strategy with high fully diluted valuations, which can stifle growth. In contrast, meme coins generally follow a “high float” approach, releasing all tokens upfront and resulting in lower valuations. He encouraged new projects to consider adopting this model while retaining a limited number of locked tokens for early supporters.

Lastly, Kanade called for increased transparency within the industry, suggesting that projects disclose the purchase prices of tokens by venture capital firms to enhance investor trust. He emphasized that founders should reflect on what strategies from meme coins could be beneficial, given their strong appeal to the retail market.

Alexander Stefanov