Novel standards and new combinations of tokens always seem to energize digital assets. ERC-721s achieved mainstream attention shortly after the 2017 release and trickled into the NFT mania of 2021, ERC-1155s enabled a more semi-fungible experience and encouraged “casual” minting with open editions..etc. Just a few months ago, we explored 404s as they revealed a blend of ERC-20 and ERC-721 features. As it becomes clear that both NFTs and memecoins are the in-game currencies of the internet, experimental token implementations will play a key role in informing the products that connect these two categories.

The memecoin “supercycle” has undeniably captured the zeitgeist of recent months. Platforms like pump dot fun have simplified the token launch process, evidenced by insane token creation data. We saw a general preference shift toward fungibility and streamlined trading processes as people played around with this socioeconomic primitive. In 2021 and 2022, the liquidity illusion of NFTs was a lesson in market dynamics; attention, not inherent value, drove many of their trade volumes. Memecoins follow suit, with their volatile liquidity-to-market cap ratios and high price impacts deterring some. Recent parallels drawn between pump.fun's effect on memecoins and Blur's impact on NFTs suggest a maturation of these markets. Hyper-financialization and fragmented liquidity always seem to signal an end to the current trend cycle.

Interestingly enough, we've also seen a general sentiment of “I'm tired of memecoins, when can we go back to NFTs”. It's been interesting to watch Sproto Gremlins, the NFT project tied to the memecoin $BITCOIN, or HarryPotterObamaSonic10Inu, and its recent action in light of broader memecoin sentiment. On the other side, we also have the recent Milady $CULT presale. NFTs and memecoins are getting closer and closer, without truly being tied together.As noted, the Pandora team's work with 404s hinted at a convergence, but hybrid tokens have yet to dominate the market. In recent news, Color Protocol shipped the BC-404 Token Standard, which builds upon ERC-404's foundation. It introduces a bonding curve to increase scarcity and value as more tokens are minted, tying an NFT's worth to its rarity and content. This layer could attract a broader audience to the 404 ecosystem, but more importantly serves as another touchpoint for this intersection.

All that to say, token standards clearly change how we engage with digital assets, and as Memecoins and NFTs have revealed their limitations, it’ll be important to track if the line between them disappears. What do other combinations look like?