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Metaversal Issue

NFTs > Memecoins

gm Bankless Nation, Pudgy Penguins maestro Luca Netz just argued NFTs are superior to memecoins. His reasoning checks out, let's dig into what I mean!
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Sep 20, 20244 min read
NFTs > Memecoins
Published on Sept. 20, 2024
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NEWS ROUNDUP
NFTs as Dunbar Goods

Speaking at Singapore’s Solana Breakpoint conference today, Luca Netz, the Pudgy Penguins CEO, argued that NFTs create a unique sense of symbolism and identity that memecoins can’t replicate. 

“With memecoins, there isn’t a profile picture that allows you to identify people who share your values. NFTs create a chain reaction effect that memecoins naturally can’t replicate,” Netz said.

There’s a reason why Luca’s one of the best among crypto’s brand builders, here he is instinctually nailing a concept I totally agree with and have thought about for the past few years: NFTs as Dunbar Goods

As some of you may know, “Dunbar's Number” is a theoretical limit proposed by British anthropologist Robin Dunbar, suggesting humans can comfortably maintain about 150 stable social relationships. This number reflects the cognitive limit of our brains to handle complex social interactions.

Obviously, 150 relationships is low regarding 10k NFT collections etc., but “Dunbar Goods” is an unofficial extension riff referring to assets that facilitate the formation of ideally close-knit communities—in the context of NFTs, online-first communities.

The aesthetics of a given NFT are particularly amenable to individuals identifying with a group, fostering deeper social bonds, and maintaining manageable social networks where significant interactions are possible.

The “digital badges” that NFTs can be, like PFP projects, signal membership in a specific community, e.g. Pudgy Penguins. This symbolism allows members to recognize each other easily, fostering a sense of belonging and shared identity. And the limited number of tokens caps the size of the community, keeping the group size within a range where members can form meaningful connections. 

This exclusivity encourages active interaction among members, strengthening social bonds. Along the way, these NFT communities potently develop their own culture, memes, and narratives.

Of course, it’s not that memecoins can’t work similarly to this—they can. It’s just that ownership isn’t capped when it comes to memecoins, which leads to more general noise and discoordination. 

The grand point, then, is that NFTs are especially conducive to building tight-knit, meaningful communities where individuals can identify with one another, share values, and foster lasting social bonds—something that many memecoins, due to their unlimited ownership and lack of personal symbolism, struggle to achieve.

If you’re an adventurer or builder around NFTs, keep this insight in mind! The ability to create a community around an NFT project shouldn’t be underestimated. It’s the perfect blend of form and function in a way that memecoins can’t quite match. In this way, Luca and I totally agree...

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