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Memecoins are everywhere. To some, they’re a “plague” on the market, while others see them as a perfect encapsulation of capital. Either way, this “new way to angel invest into culture” has us talking. Li argues that memecoins are evidence that crypto is where the attention economy is headed—only with much more economic efficiency than web2. She’s got another take, this one for founders: building products based on memecoins might just be a winning go-to-market strategy. We’ve got links to both pieces below.
Also in this edition: Derek explores why DeFi founders might look to high-performance chains for building opportunities, and the whole team lists startups we’d like to see in the Farcaster ecosystem.
Crypto as the Next Iteration of the Attention Economy
Last week, an NFT of Achi, the original dog wearing a hat, sold for 1,210.8 ETH on Foundation. It’s a perfect encapsulation of how crypto translates attention value into economic value—and enables a more efficient attention economy.
The term “attention economy” has gained major traction over the past several years, but it traces its origins to the 1970s and social scientist and Nobel laureate Herbert A. Simon. Simon observed that "a wealth of information creates a poverty of attention.” Attention is a scarce resource, with dynamics of supply and demand surrounding it.
Attention for the attention economy is growing
People commonly refer to web2 as “the attention economy,” where platforms compete intensely for user attention and treat attention as a commodity to be monetized; but the web2 attention economy is plagued by rampant value leakage, with positive and negative externalities.
Read the full post on our site to learn how crypto’s attention assets lead to a more efficient market.
Read this next
More fresh posts from Variant
Li Jin: Memecoins as the New GTM Strategy
One emerging go-to-market strategy is to draft off a memecoin that is gaining adoption and momentum. While traditional GTM consisted of first building a product then building a community around it through marketing and memes, this new playbook involves identifying a vibrant community of users around a memecoin then building a product that incorporates that token.
Derek Walkush: DeFi Opportunities on High-Performance Chains
Thanks to growth in L2s, the Ethereum ecosystem remains where the majority of DeFi resides. However, the recent success of Solana, Aptos, and other high-performance chains suggests they will play a major role in DeFi moving forward. But high-performance chains are different from Ethereum in ways that DeFi builders seasoned in the Eth ecosystem may not fully appreciate. Builders who understand these features of high-performance chains will be able to jump on opportunities that might not be viable on the familiar playground of Ethereum.
Variant Team: Request for Startups for the Farcaster Ecosystem
At Variant, we’ve been spending a lot of time in the Farcaster ecosystem. We often find ourselves discussing the ideas that we’d like to see — both as users and as investors. We’ve compiled a list of requests for startups. (We’re also hosting a Farcaster developer meetup + brunch on Saturday, April 6 at our office in NYC, which you can apply to here: https://lu.ma/p43szrum.)
Updates from our portfolio
March highlights from the startups we’re proud to invest in
BottoDAO raised $1.67M to continue growth, with participation from Variant.
Euler Labs has set aside $1.25M for a competition to audit Euler v2.
Modulus Labs used zero-knowledge proofs to verify a large language model onchain.
Morpho partnered with Gauntlet, which has created DeFi lending vaults on Morpho Blue.
Phantom wallet topped 4M monthly active users.
Scroll started Scroll Studio, its new startup accelerator for Chinese entrepreneurs.
Uniswap released a wallet browser extension to make swapping simpler.
Thinking in public
We welcome your input and replies on Warpcast.
Alli is seeking opinions on hot topics in infrastructure:
Alana wants a better way to view memecoin trends:
Jack is monitoring Farcaster frames action:
If this newsletter gave you ideas, remember that at Variant we’re always trying to help builders take their projects from -1 to 0. That means we love it when founders get in touch with us before they’ve even founded anything. Here are some ways to get on our radar at any stage:
Farcaster Fridays: Find Jesse in /0to1 channel in Warpcast, every Friday.
Next Thing Dinner Series: Apply to join us for an intimate group dinner with builders across the full crypto stack who are the beginning to think about their next things (-1 to 0 stage).
Taco Tuesdays: Come co-work with us—we’ll bring the hot sauce.
Our DMs and DCs are open.
Disclaimer: This post is for general information purposes only. It does not constitute investment advice or a recommendation or solicitation to buy or sell any investment and should not be used in the evaluation of the merits of making any investment decision. It should not be relied upon for accounting, legal or tax advice or investment recommendations. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment. Certain information contained in here has been obtained from third-party sources, including from portfolio companies of funds managed by Variant. While taken from sources believed to be reliable, Variant has not independently verified such information. Variant makes no representations about the enduring accuracy of the information or its appropriateness for a given situation. This post reflects the current opinions of the authors and is not made on behalf of Variant or its Clients and does not necessarily reflect the opinions of Variant, its General Partners, its affiliates, advisors or individuals associated with Variant. The opinions reflected herein are subject to change without being updated.
