From: thepipeline_xyz
Blockchain technology and non-fungible tokens (NFTs) offer significant potential beyond speculative assets like meme coins, with proponents emphasizing their capacity to enable real-world applications and innovation [18:42:00]. While meme coins are often characterized as pump-and-dump schemes primarily popular with newer crypto users, leading figures in the space advocate for building “something real” that can deliver lasting value [17:09:00], [18:42:00], [14:47:00].
Critiques of Meme Coins
A common sentiment among experienced traders is a bearish outlook on meme coins, viewing them as “silly” and undeserving of their valuations [13:50:00]. Key criticisms include:
- Lack of Inherent Value The consensus is that most meme coins are “absolute trash” and “useless,” made by a small number of people [17:09:00].
- Pump and Dump Schemes They are frequently described as schemes designed to create liquidity for those with early access or large followings, with the implicit understanding that “everybody’s plan is to get out” before the price collapses [17:20:00], [18:00:00].
- “Financial Nihilism” The trend is linked to a “financial nihilism” where people engage in “lotto ticket style method[s]” due to a belief they cannot make money otherwise [17:35:00].
- Dev Fatigue The prevalence and rapid gains of meme coins can cause “dev fatigue” among talented individuals who question why they are working hard on “real product[s]” when quick millions can be made elsewhere [27:09:00], [27:40:00].
- Inequitable Distribution Often, meme coins have “insiders” with significant supply (e.g., 40%) that can be dumped on new investors, leading to low liquidity and significant price drops [21:27:00], [22:19:00].
- Unsustainable Trajectory The vast majority of meme coins are expected to go to zero, leaving communities “disappointed and disillusioned” with crypto [25:47:00].
Focus on Building “Something Real”
Instead of meme coins, the emphasis should be on tangible applications of blockchain technology [18:42:00]. These include:
- Infrastructure Plays Building the underlying technological frameworks for blockchain [18:45:00], [24:58:00]. There are “so many organizations doing incredible stuff at the infrastructure layer” [42:32:00].
- Application Layers Developing user-facing applications that utilize blockchain technology [18:57:00].
- Financial Derivatives Creating new financial instruments on-chain [18:57:00].
- Putting Real Goods on Chain This is a significant area of focus, envisioning NFTs as a form of “title or deed” or “ownership” for physical assets [19:00:00], [35:38:00], [45:38:00].
NFTs as Titles for Real-World Assets
NFTs are seen not merely as JPEGs but as a “bridge to real world assets being onchain” [34:46:00]. The vision for NFTs extends to a future where physical items, such as a tractor, could be represented by an NFT on a blockchain [34:51:00], [38:20:00].
This would allow for:
- Tracking Maintenance and Metadata Recording service history, usage hours, and other relevant information directly on-chain [39:30:00].
- Ownership History A transparent and immutable record of who has owned the asset over time [39:38:00].
- Enhanced Marketplaces Improving existing marketplaces for physical goods by providing richer, more verifiable information about assets [39:02:00], [45:58:00]. For example, platforms like Richie Brothers (RB Auction) for construction equipment, which despite being a multi-billion dollar company, lack detailed, easily accessible historical information on their auctioned items [38:45:00], [40:47:00].
The ideal scenario is for crypto tools to “disrupt an industry that needs it,” rather than solely existing within the crypto ecosystem [44:12:00]. The “crypto element has to be completely invisible” for mass adoption, with seamless user experiences like phone authentication and fiat conversion [40:19:00], [40:22:00].
Challenges and Future Outlook
While there is immense potential, the “app layer” of blockchain development is currently seen as “failing miserably” in delivering these real-world applications [42:41:00]. For builders in the blockchain space, the advice is to:
- Develop a Long-Term Business Plan Plan for a “sustainable” journey of 10+ years to achieve profitable revenue [49:03:00], [49:57:00].
- Focus on User Growth and Market Fit Prioritize user growth and identify an obvious future market, similar to how Instagram grew users before Facebook plugged in a business model [50:24:00], [50:51:00].
- Seek External Industry Integration Builders should emerge from industries that need disruption and apply crypto as a “tool to go do something big in a different industry,” rather than staying insulated within the crypto industry [47:30:00], [47:41:00].
The goal is to prevent the “prophecy of all the crypto haters” who claim the industry is full of scammers by demonstrating genuine utility and value beyond speculative tokens [42:10:00], [42:14:00]. This long-term vision is crucial for blockchain to mature and impact traditional industries [47:17:00].