Is $MEME Token Doomed to Fail like Other NFT Tokens?

You’ve heard, $MEME token soon!

Historically, every single token under an NFT collection has crashed to zero.

I researched 3 blue-chip collections that failed after launching a token.

Could this happen to $MEME too? Absolutely.

So In this article, I will explain why all previous NFT token launch failed and how Ray Chan AKA 9gagceo plans on avoiding the same fate as all the other projects before him.

NFT history follows a predictable pattern: low-utility tokens hype up people anxiously awaiting the release of utility.

But as soon as the project delivers, prices plummet??

Don’t believe me? Take a look at these blue chips NFT tokens that have already gone through it:

1. CoolCats

CoolCats, a popular NFT collection, traded at a high value of 11.7 ETH ($11,930) initially. However, after the release of its associated token called $MILK, the token’s value plummeted by 99.9% from its all-time high (ATH). Currently, it is trading at 0.73 ETH ($1,330), reflecting an 89% decline.

2. Gutter Cat Gang

Gutter Cat Gang faced its fair share of obstacles. Initially traded at 5.3 ETH ($8,270), the project announced its intention to release a token but faced regulatory challenges in the United States, resulting in a delay. Ultimately, the token was never released, and the current value of the project stands at 0.76 ETH ($1,390), marking an 83% decline.

Aurory — A Token’s Downfall

Aurory, a notable NFT collection, had a trading value of 23 SOL ($4,700) before its token release. Unfortunately, the token, $AURY, experienced a substantial drop of 97.8% from its ATH. Presently, it is trading at 23.8 SOL ($500), representing an 89% decline.

This pattern is not limited to only these 3 blue-chip #NFTs project tokens there are many NFT project tokens that have experienced similar failures like $APE, $BANANA, and $NFT WORLDs, etc...

Let's cut through the BS. The token release wasn't the sole trigger for the price crash.

But let's be honest, all these projects took a hit when their tokens plummeted in the first few months due to low demand.

Here’s Why I think most NFT project tokens eventually go to zero:

1. The primary reason is: Lack of genuine, recurring demand. Before an NFT project creates a token, it should create demand drivers for its token.

1. Most projects create tokens and then use them for staking rewards. This leads to a high supply as holders get rewarded 5-10 tokens for staking daily. If I am getting 10 LPs daily, I also need avenues inside the ecosystem to spend them.

3. The biggest mistake founders make is to launch tokens before they develop other aspects of their ecosystem. With no spending avenues, there is zero demand for the token. With low demand and high supply, the price of the token inevitably falls.

4. The first question every project founder needs to ask is: "Is there even a need for a token?" If you are a fine art project, you don’t really need a token. If you want to extract money from your holders, you should build a business instead of a token.

5. NFT projects are essentially businesses, and tokens are like shares for the business. Having a token is primarily beneficial due to two reasons mentioned by #Legendary_NFT:

Now, let's talk about $MEME, the native token of the Memeland ecosystem!

Memeland’s Unique Approach to Token Creation

With the lessons learned from past failures, #Memeland aims to chart a different course for the $MEME token. #9GAGCEO Ray Chan emphasizes the importance of value creation, decentralization, and mass adoption.

Focusing on Value Creation:

Memeland is concentrating its efforts on two primary products: Holders.com and PFP.com.

Holders.com — Guiding the Web3 Journey

Holders.com serves as a TripAdvisor for individuals embarking on their Web3 journey. By providing insights, recommendations, and information, it aims to enhance the user experience within the NFT ecosystem.

PFP.com — Bridging Web2 to Web3

PFP.com is an initiative aimed at assisting Web2 brands in transitioning into the Web3 space successfully. Many Web2 brands have struggled with their NFT launches due to their limited understanding of Web3. PFP.com intends to facilitate a smoother entry into the NFT world for these brands.

Widening User Base for $MEME Token

Unlike other projects that primarily target the existing NFT community, Ray Chan envisions the $MEME token being useful beyond this niche audience. With the introduction of PFP.com, Web2 brands can tap into the potential of Web3 using the $MEME token. By targeting a wider user base, Memeland aims to establish a more stable token economy.

Avoiding the Pitfalls

Ray Chan emphasizes the importance of not creating a token out of thin air and using it for arbitrary rewards. Many NFT tokens today follow this practice, providing bogus tokens as rewards for NFT staking or social media engagement. Instead, Memeland plans to develop robust and meaningful demand drivers for the $MEME token, ensuring its value and relevance within the ecosystem.

Ray Chan is a smart founder, with proven business experience with 9GAG

In the past, everything done by Memeland has been well thought out and well executed. As we move forward, we will see more demand drivers for the $MEME token throughout the entire Memeland ecosystem.

Read this article that I wrote 2 weeks before on "How #Memeland built an NFT empire!"

Conclusion:

The history of NFT tokens has shown a recurring pattern of crashes and disappointments. However, Memeland, led by Ray Chan aka 9GAGCEO, seeks to avoid the same fate by focusing on value creation, catering to a wider user base, and developing a robust ecosystem. By learning from the mistakes of previous projects and implementing a thoughtful approach, Memeland aims to build a sustainable and thriving token economy for $MEME.

Thank you for reading!

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