Crypto founders should ‘mimic’ key aspects of memecoins, VanEck’s Kanade says

Pranav Kanade, portfolio manager at VanEck Digital Assets Alpha Fund, advises crypto teams to prioritize adaptation over quick profit plans.

Memecoins can lay the foundation for a better web3 ecosystem, as Pranav Kanade, portfolio manager at VanEck Digital Assets Alpha Fund, believes that the viral nature of memecoins offers unique advantages for market participation and distribution.

All founders/teams should watch this and ask: “Given the clear alignment of the product market with retail, what aspects of memecoins can we emulate?”

My thoughts:
1. Simplicity: Many teams over-engineer the token without realizing:
– Time + capital + attention = scarce
– ~600 thousand… https://t.co/RWlAawCPFQ

— Pranav (@vaneckpk) October 8, 2024

In an X post on October 8, Kanade urged crypto entrepreneurs to learn from memecoins and touted the product market fit with retail investors. Kanade specifically highlighted simplicity, transparency, and alignment between project teams and token holders as key factors for long-term success in the increasingly competitive crypto market.

Stating that approximately 600,000 tokens were released last year, Kanade said, “Many teams are over-engineering the token.” He argued that the ease of token launches only increases competition for these limited resources.

Crypto should double down on transparency

Kanade outlined several principles for success, starting with simple token design and a clear vision, emphasizing the importance of transparency, including disclosure of cost basis to venture capital investors. The VanEck portfolio manager advocated for high token volatility and low entry valuations to attract more retail participation, saying “we will only get rich if we hit our targets/ship products as promised.”

Memecoins have also attracted the attention of other investors, especially as the rapid increase in their popularity and market cap continues to attract the attention of retail traders and venture capitalists alike.

Memecoins-A Trojan for Web3

Memecoins are very popular lately. Are they a balloon? Or can they add real value to web3?

In this Topic, I will share 3 critical pieces of information to understand memecoins and their broad potential.

Let’s dive in! pic.twitter.com/d5HC2P0wXw

— paul.nft (@veradittakit) April 11, 2024

Pantera Capital’s Paul Veradittakit also highlighted their power to attract attention and distribute ownership, noting that memecoin communities often use viral campaigns to increase visibility, with some even funding real-world promotions such as putting memecoins in the Las Vegas Sphere.

Veradittakit noted that the fungibility of memecoins allows for broader distribution of ownership compared to traditional non-fungible tokens, potentially bringing new users to decentralized finance and the broader web3 ecosystem.