Whenever the opportunity presents itself, I do like to take a pragmatic approach to investing. I think it helps tremendously in cutting through the noise and see what fundamentals, projects are building on.
Of course, part of me is also realizing that fundamentals aren't set on stone per se, especially in this digital age. They can change or morph like a chameleon adapting to its environment.
For example, it's argued across the board that meme coins have no utility, which is quite true. But recently, there's a relative new trend where meme tokens are morphing into utility tokens, through adding core functionality into the meme token.
From the top of my head, NEKO from Near Protocol and NOT from TON blockchain comes to mind. The former has been embedded with AI, and it's Twitter/X account is also an AI bot that gives you a summary of the overall blockchain activities of any Near account.
The latter Notcoin, is gradually becoming a medium of exchange across some Telegram mini-apps(TMAs) and holding a certain amount of NOT tokens, grants you benefits on some of these mini apps.
A Fluid Solid Ground
It's either being a meme is a strategy to bootstrap the community aspect of a project, and once the community is sufficiently built, the utility or functionally is built on top of the existing hype and community engagement.
Or this is just another form of bait-and-switch marketing, and the initial meme appeal is used to draw in retail investors before pivoting to justify the token's existence.
Both seem like a good strategy, at least in theory. Since it is relatively new, we need more time to discern whether it also works in practice. It could well also be market manipulation dressed in utility clothing. Added features serve more as price catalysts than genuine use cases.
The point is, in the rapidly evolving world of digital assets, what starts as a gimmick or a meme can evolve into something with real utility and transform the perception and value of the token throughout its process of evolution.
It isn't always a wise idea to write-off on a relatively young project or one that you've known for a short period of time.
A SandStorm
That said, distinguishing between genuine utility and market manipulation can be very challenging, especially for me and specifically at the initial stages of a project's life. I've seen projects take a 180° from a core idea/principle that they started with.
Yes, I get it. Certain projects genuinely aim to add value through utility, and they have to adapt with market needs, trends, or regulatory changes.
For the most part, the market tends to favor projects that provide real solutions. The initial uncertainty or a lack of clear roadmap can really cloud judgment, but on the flip side, it's mostly about having the ability to pivot, innovate, and deliver on the promise of utility that not only sets a project apart in the increasingly crowded crypto space but also foster mass adoption.
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