VanEck Portfolio Manager Urging Crypto Projects to Adopt Memecoin Traits

VanEck portfolio manager Pranav Kanade is encouraging crypto teams to embrace key traits of memecoins, emphasizing their simplicity and market fit. He believes that adopting these traits could help crypto projects thrive in an increasingly competitive space.

Kanade made these remarks on social media following the viral Token2049 panel led by Murad Mahmudov, who discussed a shift from being a Bitcoin maximalist to championing memecoins. Mahmudov’s proposal of a “memecoin supercycle” resonated strongly with the crypto community, sparking widespread discussion.

Kanade pointed out that memecoins possess four critical characteristics that all crypto projects should consider. First, he stressed the importance of simplicity in token design. “Many teams over-engineer their token, failing to realize: Time + capital + attention = scarce,” Kanade said. He emphasized that over 600,000 tokens were launched in 2023, intensifying the competition for these limited resources. He urged teams to focus on a clear, simple product and demonstrate how it can generate wealth for token holders.

Kanade also addressed concerns about token supply, advocating for fewer locked tokens allocated to early investors. He noted that projects with large locked supplies often face growth challenges as early adopters sell off their tokens when they unlock. Memecoins, by contrast, typically have their entire supply in circulation from the start, a model known as “high float” with a low fully diluted valuation.

In addition, Kanade encouraged crypto projects to consider adopting a “hyper-transparency” approach by publicly disclosing the cost basis of token purchases by venture capital funds. He believes that such transparency would build trust with investors and differentiate projects in a crowded market.