Attention Economy and Meme Tokens: The Business Logic from Frenzy to Loss of Control
With the support of blockchain technology, Meme tokens have taken the world by storm, igniting a financial frenzy driven by the attention economy.
With the support of blockchain technology, Meme tokens have taken the world by storm, igniting a financial frenzy driven by the attention economy. From the success of Pumpfun to the launch and eventual shutdown of its live-streaming feature, these events reveal the double-edged sword effect of the attention economy.
The Rise of Meme Tokens: A Financial Game Anyone Can Play
Pumpfun's success injected strong momentum into the development of Meme tokens. With an extremely low issuance cost of just $2, anyone could create their own token on the Solana network and have it traded immediately. This low barrier transformed Meme tokens into a cultural phenomenon akin to "financialized internet memes."
This innovation not only lowered the entry threshold for ordinary users into the blockchain world but also brought unprecedented market vitality. People's creativity quickly translated into market hype through token issuance, making Meme tokens one of the best practices of the attention economy.
The Peak of the Attention Economy: Pumpfun's Live-Streaming Feature
To further promote the Meme token ecosystem, Pumpfun introduced a live-streaming feature. Through live broadcasts, token issuers could showcase their creativity or actions in real-time, attracting viewers' attention and driving token trading.
This feature became immensely popular upon its release, pushing the attention economy of Meme tokens to a climax. However, the booming live-streaming also exposed the darker side of the attention economy.
The Attention Economy Out of Control: The Disappearance of Boundaries
As live streaming became a means to gain attention, streamers began to engage in increasingly extreme behaviors to capture viewers' interest. From self-harm and suicide to animal abuse, and even performances mimicking Nazis, these actions quickly drew widespread societal criticism.
When people stop at nothing for attention, moral boundaries blur or even vanish, and the attention economy spirals out of control. Ultimately, Pumpfun had to announce an indefinite shutdown of its live-streaming feature to quell public condemnation. This decision directly led to a significant 66% drop in the platform's weekly revenue, indirectly proving the massive impact of the attention economy on platform earnings.
The Essence of the Attention Economy: A Double-Edged Sword
The core logic of the attention economy is that people's attention is a scarce resource that can be converted into actual economic value. Meme tokens leverage this logic—from issuance to trading to live streaming—turning attention into real market demand. However, the double-edged sword effect of the attention economy cannot be ignored:
- Positive Effects: Lowers the barrier to user participation, promotes creativity and cultural dissemination, and creates new income opportunities for individuals and communities.
- Negative Effects: When attention becomes the sole goal, extreme behaviors can undermine the platform's ecosystem and social value, even threatening user safety and mental health.
Lessons from Pumpfun: The Future of the Attention Economy
Pumpfun's journey from launching to shutting down its live-streaming feature serves as a microcosm of the attention economy. While attention can indeed be converted into commercial value, it is not a cost-free, boundary-less resource. In the future, finding a balance between encouraging creativity and regulating content will be a challenge that all platforms relying on the attention economy must ponder.
Specifically, platforms should consider the following:
- Establish Content Moderation Mechanisms: Effectively filter extreme content to prevent the competition for attention from becoming excessive.
- Balance Creativity and Commercialization: Provide users with space to showcase creativity while avoiding over-commercialization that could distort the content ecosystem.
- Focus on Long-Term Value: Platform revenue should not rely solely on short-term attention bursts but should build a sustainable user value system.
Conclusion
The rise of Meme tokens and the prosperity of the attention economy showcase a new business logic in the blockchain era. However, the loss of control experienced with Pumpfun's live-streaming feature reminds us that the attention economy is not without costs. In this era filled with opportunities, finding the right balance will be a challenge faced by all participants.
As the Pumpfun case reveals, the feast of the attention economy will eventually come with a "bill." Only platforms that can correctly understand and harness this economic model will stand undefeated in future competition.