How do memes evolve from internet jokes into an encryption cultural engine?

Author: Sasha Ivanov, founder of Waves and Units.Network, CoinTelegraph; Translation: Tao Zhu, Golden Finance

Not long ago, the idea that a internet joke could become a multi-billion dollar asset class seemed laughable. Today, Meme coins are not just mainstream. They are reshaping the entire market cycle. The United States now has an official Meme coin associated with the president. What was initially just a niche community experiment has now become an undeniable financial force.

This is not just speculation. In November 2024, Meme Coin accounted for 65% of the total trading volume on the decentralized exchange Raydium, reaching a historical high. These assets were once seen as internet gimmicks and have now become the cultural engine of cryptocurrency. This phenomenon has brought a slight identity crisis to believers and skeptics, who need to reconsider their positions.

Whether it is seen as the next market movement driven by retail investors or an unsustainable frenzy, one thing is clear: Meme coins are no longer a joke.

Meme coins are more than just speculation

Essentially, Meme thrives on community belief. The value of traditional financial assets comes from utility, institutional adoption, or revenue models. In contrast, Meme is driven by social participation, viral spread, and collective momentum.

This makes them one of the most effective entry tools for retail cryptocurrency investors. Memecoins eliminate the complexity of blockchain technology, making digital assets approachable, familiar, and culturally relevant. For many, they are the first step into Web3, opening the door to decentralized trading, governance, and finance.

However, the same factors that make them easy to access also make them unstable. The same market mechanism that caused Meme to soar to a valuation of $1 billion overnight could also easily lead to their collapse within a few days. While a trader may turn $66 into $3 million in profit, when the speculation fades, thousands of other traders end up holding tokens that are ultimately worthless.

No one can ignore the issue of volatility

Numbers tell the whole story. When Elon Musk changed his X username and profile picture, the meme market value associated with him soared to $380 million. Once Musk reverses these changes, the token will plummet to $100 million, and then plummet further.

This is not an exception. This is the reality of the meme market. It is unpredictable, profit-driven, and fueled by speculation. While some traders thrive in this environment, most do not. Skeptics believe that memes are nothing more than a blockchain-based casino—a game where few win and most lose.

Ignoring memes completely will overlook a larger reality. No matter how skeptical, memes will not disappear. They are shaping market trends. The real question is: can memes transition from hype-driven speculation to governance and long-term structured financial assets?

Governance is the key to long-term survival

If memes are to transcend short-term trading cycles, governance must take center stage. Decentralized Autonomous Organization (DAO) provides a model that allows holders to shape token supply, enhance transparency, and influence project direction, giving memes a real chance at sustainable development.

This structure can prevent centralized control by developers and whales, thus reducing the risks of insider manipulation, exit scams, and pump and dump schemes. It also ensures that memes can integrate fund management, equity incentives, and token supply models to promote long-term viability, rather than short-term speculation.

A typical example is Floki Inu (FLOKI), which is a meme that has successfully built a functional ecosystem beyond meme-driven trading. Floki Inu does not rely on short-term speculation, but integrates non-fungible tokens (NFT) games, payments, and educational programs, proving that memes can evolve into structured, community-driven assets.

Memes do not need to abandon their cultural origins, but to survive beyond the current hype cycle, they must adopt governance mechanisms that promote economic sustainability.

Meme is at a crossroads

Meme has divided the cryptocurrency space into two extreme camps. On the one hand, Meme extremists insist that this bull market will be led by Meme, believing that faith and viral spread alone are enough to sustain Meme. On the other hand, skeptics completely ignore Meme, considering them to be scams that inflate stock prices and eventually end in failure.

Both of these views overlook the bigger picture. Memes have proven their ability to drive market activity, but ignoring their risks is just as reckless as outright denying them. The real challenge is not whether memes should exist. They already do. The question is how to construct them to ensure the safety of investors, the stability of the market, and the long-term reputation of the industry.

Builders, regulators, and communities must work together to balance decentralization and responsible governance. Ignoring memes as a passing trend is short-sighted. Failing to address their risks may be even worse—potentially leading to catastrophic collapses and damaging public trust in the entire cryptocurrency.

Memes will continue to exist. The real test is whether they will continue to be speculative roller coasters or develop into a legitimate digital economic sector. The answer lies not only with traders, but also with the builders, developers, and policy makers shaping the future of blockchain.