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Memecoins Rally on VC Attention

Large-cap and mid-cap memes are commanding mass attention as degesn hope VCs will join the trend.
By: Squiffs • October 07, 2024
Memecoins Rally on VC Attention

The memecoin supercycle may be transitioning from a meme, to reality.

Memes of all sizes surged over the weekend, led by tokens such as SPX which increased as much as 125%, and POPCAT which ran by 45% since Friday.

Increased social media attention via influencers, including Murad Mamhmudov’s is catalyzing the move. Venture capital investors, including Chris Burniske, are posting about these tokens, which is also driving the bullish sentiment.

“Memecoins’ tendency to trigger is all you need to observe to know they’ll be bigger than we expect in the expansion ahead,” Burniske said “The cultural relevance some NFT collections garnered in 2021 will be surpassed by some memecoins. Not here to endorse a horse, but the trend is clear.”

Traders and degens were quick to take Burniske’s statements as a “stamp of approval” from the venture capitalist community.

Su Zhu Weighs In

Burniske’s post came the day after co-founder of Three Arrows Capital, Su Zhu wrote, “Hearing liquid funds who had previously rejected memecoins are now being asked by LPs why they havent caught the moves. Institutional allocation to memecoins is likely to be the story of q4 2024.”

While there is no definitive proof of VC’s raising memecoin funds, the speculation was enough to send the market into a frenzy.

Explaining the choice to invest into memecoins to venture capitalist limited partners is likely a more daunting task than crypto Twitter likes to pretend. However there have been successes in the past.

At Solana Breakpoint Joe McCann, the founder of Asymmetric, disclosed his fund's choice to invest in Solana memecoin BONK in September 2023, at a market capitalization of $28 million. Since then, BONK has increased 52x and currently trades hands at a $1.5 billion market capitalization.

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