In the fast-paced world of crypto, where meme tokens can skyrocket or plummet overnight, a recent discussion sparked by Armani Ferrante, founder of Backpack and Mad Lads, sheds light on a crucial aspect of token economics. Ferrante, responding to a tweet about a token's relentless price decline despite heavy team buying, emphasized that markets look ahead. "The job isn't to burn the supply. It's to grow future demand for it," he stated.

The conversation started with a post from @MetamateDaz, questioning how a team could acquire nearly two-thirds of a token's supply—likely referring to Rollbit's RLB—and still watch it bleed value continuously. The accompanying chart illustrates this downward spiral, showing a steady drop in price over time.

This thread highlights a common misconception in the meme token space: that reducing supply through burns is a surefire way to boost value. While burning tokens can create scarcity, Ferrante argues it's not the endgame. Instead, building real demand—through utility, community engagement, or innovative features—is what sustains long-term growth.

Replies to Ferrante's post echoed this sentiment. One user pointed out that growth trumps scarcity, while another noted that burning is more about optics than strategy. Even in cases like Hyperliquid, where supply management played a role, the underlying demand was key. For meme tokens, which often rely on hype and virality rather than traditional fundamentals, this advice is particularly relevant. Projects like Mad Lads on Solana have thrived by fostering strong communities and integrating with ecosystems like Backpack Exchange, driving organic demand.

If you're diving into meme tokens, remember: a strong narrative and practical use cases can outpace artificial scarcity. As the crypto landscape evolves, focusing on demand could separate the fleeting memes from enduring players. Keep an eye on discussions like this to stay ahead in the game.