Binance Research Publishes Report on Meme Coins: What to Know

Binance Research, the research and analysis unit of Binance (BNB), a global cryptocurrency exchange ecosystem, published a detailed report on the meme cryptocurrencies segment. Its researchers indicated the most critical trends in the segment, key aspects of its paradigm and potential new narratives.

"High-risk, high-reward investment vehicles": Binance Research on meme coins

Binance's cryptocurrency research and study arm, Binance Research, shared its latest report for November 2024, "Understanding the Rise of Memecoins." It outlines the status of meme cryptocurrencies as a new digital asset class with its own unique cultural and economical impact.

First, the research showed the multiple roots of the meme coin mania that started back in 2021. The inflow of money ("quantiative easing," QE) by the largest nation-states resulted in a surplus that, in turn, might have been "parked" in such an exotic assets.

Also, meme coins' popularity can be intrepreted as financial nihilism by youth since 94% of investors in the segment are millenials and from Generation Z.

When the Gamestop saga made headlines, it became obvious that meme coins may similarly resonate with investors for narrative and cultural reasons, driven by their symbolic value rather than traditional valuation metrics.

Researchers also noted that meme coins might be more accessible than "regular" meme coins: the time-to-convert for a meme coin consumer may be much faster than that of a technology altcoin consumer.

Meme coins can be useful for future tech, here's why

Despite being severely criticized for the lack of innovation, meme coins still might be helpful for tech developers and researchers. 

The author stressed that valuable insights can be gleaned from the meme coin phenomenon, particularly in the areas of community building and fair token launches. These aspects are important for any Web3 team to consider, as they are deeply rooted in the core principles of cryptocurrency — transparency, fairness and decentralization. 

The full text of the report can be downloaded for free, together with other latest publications by Binance Research on its official website.