AC Capital explains nature of meme coins boost

Chinese journalist Colin Wu published the report by AC Capital expert Armonio, who explained the recent popularity of meme coins.

According to the expert, disseminating information is divided into two parts: information contamination and information immunity. The same principle applies to meme coin hype.

Armonio notes that meme coins have become a unique phenomenon in the attention economy of the web3 era, where focus is directly assigned a financial value. The combination of capital and attention creates meme tokens. In addition to the wealth effect, the key opinion leaders’ (KOL) matrix, distribution environment, and consistency of information content are critical.

In this case, the author pays special attention to the Book of Meme (BOME) token phenomenon, supported by influencers who are also artists. While the artists aren’t big names, they stand out because they have a close-knit follower base.

“In the world of memes, where attention is key, the phenomenon of attention feeding back into investment can be considered. For example, the Bome community helped boost the value of the SMOWL community.”

Armonio, AC Capital expert

The author reduces the hype around meme coins to information pressure. The essence of popularizing information is to ensure that the level of infection exceeds the level of immunity. As long as the number of people “infected” per unit of time exceeds those who have recovered, the number of followers of fashionable information increases, and the information spreads more widely.

Despite the correction of the first cryptocurrency, several altcoins are showing steady growth, especially meme tokens. According to CoinGecko, the total capitalization of this sector has reached almost $50 billion. Dogwifhat (WIF), Bonk (BONK), and BOME were the most trending meme coins.