Attention is the core of Dogecoin (DOGE) and other memecoins. Just as earnings affect the stock price of companies, the amount and quality of attention given to memecoins affects their price.
Successful cryptocurrency traders understand that DOGE and its color are not tokens in the “big shitcoin casino” but are, in fact, tradable derivatives of human attention. These are tradable assets backed by zeitgeists.
Trading Memecoin is not only about spinning the wheel, but also assessing the value of the cryptocurrency based on the attention it receives. As crypto influencer Cobie puts it, “smart traders start selling when ownership and valuation have caught on.”
This means that human attention is seen more than ever as one of the world’s rarest commodities, and it is. In fact, we’ve known this for so long that talking about the “attention economy” is now a cliché.
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In the 2000s, Web2 companies like Facebook and Snapchat learned how to care. They created apps that captured people’s attention and tracked their behavior, allowing them to build attention and sell to advertisers.
I know this may sound like undergraduate nonsense, but as our economic system changes and develops, it is only natural that the types of things we value will increase. If human attention is powerful enough to power the results of giant companies like Meta and Google, then why not trade it directly?
Memecoins are a way to evaluate and exchange the attention product in a decentralized way. Thanks to blockchains and automated market makers, everyone can speculate on people’s attention and enthusiasm.
Do you remember Joe Rogan getting into a lot of trouble earlier this year for comments he made on his popular podcast? The Joe Rogan Experience ? Within 24 hours, a dozen Rogan-themed memecoins were launched, one of which, Marshall Rogan Inu (MRI), surpassed a market capitalization of $50 million.
How could the market capitalization reach such a high level? Well, at that time, MRI was the top trending cryptocurrency on exchanges like DEX Screener, it was exploding on Twitter, and it sponsored a mixed martial arts fighter. His evaluation must have captured the enthusiasm that inspired the project.
Or take DOGE, which exploded after Elon Musk took over Twitter. The higher valuation was not only because of the rational, albeit risky, play that Musk could integrate cryptocurrency with Twitter in the future, but it was also a function of cryptocurrency traders betting that Musk’s tweets would draw attention to the DOGE and increase his. price.
Unlike small memecoins that depend on the interest they generate, memecoins like Shuba Inu (SHIB) and Dogecoin have fundamental features that add to their value. In fact, DOGE’s market capitalization is currently more than $16 billion, and it is one of the largest Proof-of-Work blockchains after Ethereum’s move to Proof-of-Stake in September.
DOGE’s valuation is therefore based on its fundamentals and attention, but memecoins like Will Smith Inu (WSI), which exploded after Will Smith beat Chris Rock at the Oscars, are simply ignored and forgotten. when the news cycle moves on.
Although it is easy to dismiss all this as senseless gambling, and I do not deny the speculative element, which would be missing a change under the hood. Memecoins are not based on random dice rolls, they follow the evolution of human attention.
Given the challenges facing the global economy, it is not surprising that new methods of speculation and investment are being created. Our economies are at risk of collapse due to declining productivity and scarcity of natural resources.
In the future, we will see the ephemeral aspects of culture as tradable commodities. Split music albums and intellectual property rights are on the way, and thanks to memecoins, people can now trade merchandise based on jokes and tabloid scandals.
DOGE’s massive market capitalization and the ongoing parade of small-cap memecoins show that our concept of value is shifting from real-world commodities, rising from the ground, to ephemeral qualities that produce culture. And remember, if everyone decides something has value, it might.
Nathan Thompson is Bybit’s lead technical writer. He spent ten years as a freelance journalist, mostly covering Southeast Asia, before turning to cryptocurrencies during the Covid-19 lockdown. He holds a double degree in communications and philosophy from Cardiff University.
This article is intended for general information purposes and is not intended to be legal or investment advice and should not be considered. The views, ideas and opinions expressed herein are solely those of the author and do not necessarily reflect or reflect the views and opinions of Cointelegraph.