VanEck portfolio manager Pranav Kanade recently shared valuable insights for crypto projects to consider emulating key traits of memecoins. Kanade pointed out that memecoins have been successful due to their simplicity, clear product-market fit with retail investors, and high float supply model.
In a social media post following a Token2049 panel discussion by Murad Mahmudov on memecoins, Kanade highlighted the importance of simplifying token designs. He noted that many crypto projects tend to overcomplicate their tokens, overlooking the fact that time, capital, and attention are scarce resources in the competitive crypto space.
Moreover, Kanade addressed concerns regarding token supply, particularly the issue of locked tokens allocated to early investors. He explained that projects with a large number of locked tokens often face challenges with growth when these tokens are eventually unlocked, leading to potential dumps by early adopters seeking profits. In contrast, memecoins typically have a high float supply model, with their entire circulating supply available from the start.
To enhance growth and transparency, Kanade recommended that crypto projects reconsider their token supply approach and adopt a high float model with only a small portion of tokens locked for early adopters. He also encouraged projects to embrace hyper-transparency by disclosing the cost basis of token purchases by venture capital funds, a practice that is not commonly shared publicly.
By implementing these key memecoin traits, crypto projects may be able to attract retail investors, streamline their token designs, and foster a more sustainable growth trajectory in the ever-evolving crypto landscape. Kanade’s advice serves as a valuable guide for teams navigating the complexities of launching and managing crypto projects in a competitive market environment.
