Should web3 devs be building tribes, not just tools?

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Memes have come a long way, from niche internet jokes to full-blown speculative trading tools. Now we even have the first AI agent millionaire with Goatseus Maximus (GOAT). While I initially dismissed meme coins as crypto casino gambling chips, it takes insight to see what they actually mean. Murad Mahmudov’s presentation at TOKEN2049 in Singapore opened my eyes.

From Dogecoin (DOGE) or Shiba Inu (SHIB) to Bonk (BONK) or Pepe (PEPE), crypto memes are rallying points in today’s hyper-digital world. They provide people with a common language and identity (assurance of belonging) where old institutions and market structures have failed them. Murad says we are in a ‘meme money supercycle’ and that tribal loyalty and feelings of community are driving markets more than utility. I think he is completely right; The signs are everywhere, in the trenches and outside.

As an OG, I had to question whether traditional business advice was mostly useless on web3. The ‘token is the product’ here. So it might be wise for innovators and developers to focus on building based tribes and close-knit communities, not just on intangible core benefits.

Neither more infrastructure nor more applications

Starting with Bitcoin (BTC) and Ethereum (ETH), a culture of anarchy combined with cutting-edge technology has defined crypto’s value proposition. It came with the promise of a decentralized and trustless world built around individual autonomy. But after more than fifteen years, crypto technology has yet to fully deliver on its promises.

While more infrastructure and more applications could increase the appeal of blockchain and crypto, what it really needs, especially for mass adoption, are more emotional touchpoints and narratives for people to rally around.

The next billion users don’t care about technology or which major VC invests in the next shiny object. They care about having fun with a community of like-minded people. The ‘public benefit’ or social impact projects created downstream from here are the cherry on top.

Take the OG crypto meme coin DOGE, for example. It was born for the purpose of satire and has no breakthrough technology or VC funding to back it up. I was in the room of the Ethereum Foundation in Zug when DOGE was launched. This was a deliberate joke; “Let’s not take ourselves too seriously,” the tech bros said. But it now has more than 6.9 million owners and uses community money to finance water wells in Kenya. This is what you call bottom-up benefit creation.

Instead of pocket money investors leaving ‘use cases’ and overvalued coins to retail, meme coins encourage truly decentralized community formation. This is the fundamental power and beauty of meme coins.

Speculation aside, they encourage geographically, culturally and ideologically diverse people to form groups around a common idea that is often fun and humorous. And with often no long-term outcome in sight, memecoin communities come together for the good of the community.

Vibration in a disconnected world

Tribalism is not new in crypto. Bitcoin maximalism or Ethereum loyalty, for example, are nothing more than quasi-religious sentiments. The Creation Block is a sacred symbol enshrined in mathematics, game theory, and mythology.

Source: Vitalik’s blog showcases conflicting BTC and ETH vibrations

This begs the question: Why are meme coins booming now? The short and lazy answer might be that crypto works in cycles and now is the time for meme coins. Once the excitement wears off, it will all go down to zero. But no.

The world is becoming increasingly miserable and younger generations are having a hard time understanding this. There is a complete lack of meaning and disillusionment as established institutions either disintegrate or betray their dark, anti-individual underbelly.

Memes are the antidote to such vulgarity; not just in crypto, but everywhere. Even US presidential elections were largely driven by memetic identities such as ‘Kamala is a brat’ or ‘Sister Vote’ rather than strict policy, performance or ideology.

In previous Brexits, there were sharp divisions into ‘Leave’ and ‘Remain’ camps; Tribal language such as “Remoaner” and “Brextremist” generally characterized polarized speech. Although a negative manifestation, this shows how integrated tribalism has become into modern times and culture.

Meme coins are great because they channel this increased demand for belonging and connection into something positive and monetizable. Thousands are excited by the ‘Goat Bible’ and many more will do so without caring whether LLMs might make a typo.

Solana-based meme coin Popcat (POPCAT) is another example of fun vibes and community interest that eliminates the need for technical promises. Bonk developed along similar lines to become Solana’s ‘social layer’.

Overall, the meme coin supercycle highlights a reality where identity is the new benefit. No matter which narrative of truth or gigabrain technology innovation projects you subscribe to, a community-first approach will separate the winners from the losers.

Without a grounded community, even the best technology ends up in the dumps. Yet even the most mundane, uninteresting technology can go to the moon with active and loyal community support. Intrinsic value has taken on a completely new form.

Young consumers care about fun, identity and emotional connection as much as they do about functionality. Web3 projects, like everything else, must pass jitter control. Builders (mostly those with a web2 background) must restructure themselves to build tribes, not just tools.

Artificial intelligence may not be able to take your job away from you, but not being able to keep up with the demands of the times will definitely take it away from you. The lesson is simple: Community is the currency and identity is the ultimate asset.

David Ben Kay

David Ben Kay is a US attorney specializing in intellectual property law, with core experience at the UCLA School of Law under renowned experts Melville Nimmer and William Alford. After working at leading international law firms, he joined Microsoft China as head of legal and corporate affairs and became managing director of “Genuine,” an initiative by Steve Ballmer to promote the adoption of licensed software in China. In 2008, he founded Yuanfen Flow, a digital art gallery in Beijing’s 798 Art District that pioneered digital assets, the precursor to NFTs. Today, David serves as chief legal officer of Pundi X and president of Pundi AIFX, a company focused on blockchain-based payments and AI authenticity verification.