Key takeaways:
TikTok is now driving new crypto trends before CryptoTwitter catches on, indicating broader reach.
The rise of Chillguy highlights the difficulty of monetizing internet-native IP and the challenges of creator compensation.
Memecoins provide a real-time path from attention to capital formation, bypassing traditional monetization methods.
Onchain structures could allow creators to verifiably claim ownership and capture value from their digital assets.
Trying to stay up to date with new narratives in crypto when the market heats up, like it has now, is like running in a revolving door. New metas come in, old ones fly out—all at blazing speed. I started writing this before the weekend, and now, just a few days later, it already feels a bit outdated. Sheesh.
Let me jog your memory, or, if you're not in the trenches, let me give you some context. The most recent event that caught my attention was the TikTok/Crypto crossover. Previously, most new trends, coins, and attention traps originated in the bubble that is CryptoTwitter—or "CT" (the crypto-focused corner of X, formerly Twitter). From there, if the trend was strong enough, it might spread into broader, more mainstream circles. CT always had the upper hand in being the birthplace of crypto narratives.
But in the last few days, we’ve seen a shift. Some new memecoins have skyrocketed from TikTok before the aficionados of CT even caught on. This is an interesting turning point, signaling a broader reach for crypto in general. Specifically, one crossover has stood out because it puts the potential of onchain intellectual property (IP) on full display—while simultaneously highlighting the challenges of public perception, as well as the challenges of the chaotic, viral distribution machine that is the internet.
Chillguy: The Rise of a Viral Meme
Chillguy is a meme created in October 2023 by Philip Banks, described as "a chill guy that lowkey doesn't give a f---." The character has grown a following, accruing attention on Web2 social networks over time. Chillguy looks like this:
It's a great example of digital, internet-native IP. Chillguy has grown through online zero-cost distribution engines, spreading without friction and capturing attention. Attention is valuable—but how valuable, exactly?
A few days ago, someone launched a $CHILLGUY memecoin, adopting Chillguy as the mascot. It caught wind through TikTok and, in no time, raced to a market cap of approximately $400 million (edit: ≈$500M now).
Not So Chill: The Creator's Dilemma
In frustration, the creator of Chillguy (the meme, not the coin) posted this on X. He’s clearly not a fan of crypto to begin with, and being left behind while someone else monetized his creation probably didn’t help matters. Understandably so.
Many people agreed that it wasn’t fair for him to be left out of the value captured by the token, especially since the meme’s attention was instrumental in that success. A wallet was set up for him, and the community was urged to donate—and they did, handsomely. The current balance of the wallet exceeds $800,000 (you can verify it here: https://solscan.io/account/6ak5ukawHuxgttX1AXdW8XQNvst2kpK1mRfinFMgV6md). It’s not clear if he’s accepted the donations.
(He was also doxxed and received many unpleasant messages, presumably from people with a vested interest in the memecoin – which also puts on display the ugly side of financializing everything).
This situation highlights a few key things:
The internet machine can’t (realistically) be stopped.
Monetizing internet-native IP is difficult—pathways for creators are often unclear.
Memes becoming coins demonstrates a viable path to go from attention to capital formation in real-time.
Trying to stop a viral meme, let alone a tokenized meme, with take-down notices is futile. But this situation underscores a pressing issue—and a massive opportunity. How can we enable creators to verifiably claim ownership of digital assets, like cultural objects or internet-native memes, to track their spread and derivative use, and ultimately capture some of the value they generate?
Jason Zhao of Story Protocol had a good take:
If ownership is embedded at the foundational layer of future internet experiences, these outcomes become possible. The situation is also a reminder of the chasm that must be crossed: enabling people (like creators) too see and understand how onchain rails and tooling can be a net-positive for their activity.
The Future of IP Monetization Onchain
Putting IP onchain, and monetising it there, creates a dynamic, flexible construct.
As attention for the brand/meme grows, it is directly tied to tangible value (like a token).
Creators and supporters together can monetize.
This feeds into downstream monetization, but also into a virtuous cycle—supporters with ownership promote the brand because they have a vested interest.
Memes are IP, but haven't had good pathways to monetise. The classic approach is to do merchandising, for instance. Which is something, but hardly captures the full value potential of a viral attention trap.
In related events, there are now rumors that the $PEPE memecoin may be delisted from centralized exchanges like Coinbase, due to recent claims of copyright infringement. Meanwhile, the Stonks memecoin ($STNKS) announced that they had acquired the IP rights to the original meme.
These developments suggest something intriguing about the memecoin category. These tokens attract a lot of people, interest, and attention. Many bootstrap using the brand value of an existing meme, often without sharing revenue with the original creator. But they also show a viable path to form capital from attention in real-time using crypto rails.
As a result, the importance of IP governance and clear monetization pathways may quickly become a key focus for those building within the consumer crypto category with the strongest product-market fit: memecoins.
Existing memecoins may need to get their ducks in a row (at least if they want centralized exchange listings, which are important for distribution). Creators of viral content should consider how tokenization can serve as a monetisation strategy. (Would Chillguy creator be chill or not-so chill if he had 20% stake at $500M mcap?)
It also raised another question: Can memecoins become a future mechanism for distributing, owning, and building communities around IP-driven projects when contained and orchestrated within appropriate onchain structures?
While the above is an interesting concept, there's also a challenge; the ephemeral nature of attention. We see it time and time again with memecoins. Most that break out have flash-in-the-pan like price evolutions, before dumpign towards zero. Only a select few stay relevant, retains attention and, as a function, sustains demand for the token. Supporters find the financialization part fun when prices are euphoric, but less so when prices dump 80%. This can create a very volatile environment to attempt to build something sustainable over time.
Still, there's something un-explored in the concept. When a meme can go from web2 abstract value to $500M of capital formed in a mere few days, there are patterns that can be extracted and applied to other IP projects in the future.
As always, reach out to me on X or Farcaster if you have feedback or are working on something cool you want to discuss.
