I was at Token2049 a couple of weeks ago, and I spoke to many utility projects that are building cool shit, solving a real problem, and have a ton of users.
Like others, I came into this space full-time over 3 years ago for the technology and how we can use this technology to solve real-world problems, so it was great to see.
However, it’s not all sunshine and rainbows.
Of the projects I spoke to, many were frustrated as to why their tokens are not succeeding, yet memecoins—projects with no utility, solving no real-world problems, and with no users—are getting all of the attention and, frankly, making all the money.
The reason for this is that memecoins have got growth right; utility projects have not.
I’m going to explain this in this article, but more importantly, provide utility projects facing this issue with the knowledge to grow like a memecoin.
Let’s get one thing straight: Degens drive the majority of real buying volume in crypto.
And memecoins? They know exactly how to speak to degens, pulling them in and creating a flywheel of volume, token holders, and community.
When memecoins nail these three things, their holders become incentivised to spread the word, creating a network effect among other degens, fueling even more growth. It’s a mega growth loop, all because they know how to attract the right audience.
Utility projects, on the other hand, miss the mark. They don’t speak the language of degens. They don’t build markets that appeal to them. And they don’t activate the channels that degens live on.
Utility projects need to take a page from the memecoin playbook. The audience that makes a project successful and triggers network effects is the one you need to speak to, target, and cater for. Degens are the key.
Once you’ve got degens in focus, the next thing to understand is this: for degens, the chart is marketing.
Degens are investors. And 9.9 times out of 10, the successful utility projects out there didn’t hit billion-dollar market caps purely on utility—they did it by pulling in degen investors.
A smart degen will look at your chart and analyze it technically. They’re checking liquidity, trading volume, number of holders, and more. If you’re slipping on any of these metrics, you’re losing them.
So, start treating your chart like it’s marketing. Make it a sight for those degen laser eyes.
To build on that, let’s be real—utility projects are still speculative assets.
Take $ENERGI, for example. They’ve spent years building super cool tech to solve a real-world problem, and their market cap is under $5M. Now look at $MOODENG, a memecoin based on a cute hippo in Thailand, which shot to a $300M market cap in a week.
Degens aren’t going to speculate on utility if they can speculate on culture, community & something that might become a movement, the cornerstone of memes that almost all utility projects ignore.
Most altcoins are 90% down from their all-time highs. Even with a "utility" label, if the token’s use case doesn’t drive demand and bring buying volume into the market—no matter the market cycle—then it’s just as speculative as any memecoin. The difference? Memecoins create better market conditions for degens, which is why they flock there.
Building on that, memes are a huge part of internet culture. They make us laugh, create a sense of belonging, and communicate with us in ways that utility projects just can’t.
In this generation, we’re trading memes with our friends all day long. We’re using them like currency to share emotions and connect with each other. Memes are more than just jokes; they’re a form of expression and a way to bond. That’s the magic that utility projects often miss. They need to tap into that vibe and resonate with the culture to truly engage the community.
Building on this again, community is the most powerful form of utility in crypto. It’s the main reason why degens stick around after they’ve made their initial investment.
If both types of assets are speculative, it becomes crystal clear why memes are thriving while alts often get wrecked, community. Memes create that strong sense of community, and when you have that, you attract loyal holders. Utility projects need to recognize that community isn’t just a nice-to-have; it’s essential for survival in this space.
The holy grail of crypto growth is all about activating a network effect. It's as simple as that.
Network effects happen when you nurture a community that not only acquires your token but also has a genuine interest in your project's success. When your project grows, they grow with it.
Get that initial degen community on board, take care of them, and watch as you activate that network effect. Once that’s in motion, you’re on the path to mars.
We’ve conducted over 20 growth sprints for projects across all narratives at Magnet (growwithmag.net). Some are marketing-led, driven by awareness, while others are product-led, focusing on user acquisition.
However, every sprint we’re currently running is centred on community-led growth and token-led growth—in other words, bring the degens in full steam.
This has become our specialty, as it adds the most value to a project and is our focus for this next phase.
Why?
Most projects are funded by their token. If their token and market conditions improve, their treasury becomes more valuable and liquid enabling them to keep on building. It also creates a stronger network effect due to the number of token holders, allowing them to attract key opinion leaders, generates more revenue on the token side, and expands their fundraising options.
Degens will rotate out of meme profits into utility projects they believe in. If you can become that utility project, you’ll explode. You just need to learn from memecoin growth, not envy it.
The goal of this article is to help you see where the real growth opportunities and the biggest value are for utility projects right now.
If you're looking for a list of growth activities to implement to achieve that memecoin-style growth, attract those degens, and maximize your project's value, send me an email at jake@growwithmag.net or a DM with the message ‘Meme Growth Activity List’ and the name of your project, and I’ll send it your way.
Peace,
JakeOnBlock
