Hey there, crypto enthusiasts! If you’ve been scrolling through X lately, you might’ve stumbled upon a thought-provoking post by hitesh.eth (@hmalviya9) that’s got the community buzzing. The core idea? Tokens need to do more than just exist—they must play a vital role in building and sustaining a blockchain network to be considered true assets. Let’s break this down and see why it matters, especially for those of us diving into the wild world of memecoins and beyond.

The Bitcoin Blueprint: Incentives Drive Success

hitesh.eth kicks off with a powerful analogy: imagine building the Bitcoin network without rewarding miners with BTC for their computing power. It’s hard to picture, right? That’s because Bitcoin’s success hinges on its token serving a clear purpose—securing the network through proof-of-work. Miners get BTC as an incentive, which keeps the system decentralized and trustworthy. This isn’t just a cool feature; it’s the backbone of why Bitcoin has thrived since its inception.

This idea extends beyond Bitcoin. Any token worth investing in should contribute to its network’s growth or security. If it doesn’t, hitesh.eth argues, it’s more of a liability than an asset. Think of it like a tool—if it doesn’t help build the house, it’s just clutter in your toolbox!

Why Most Tokens Might Be Falling Short

The thread quickly sparked some eye-opening replies. 0xRoy (@roy_defi) chimed in, suggesting that 99% of today’s tokens might not meet this utility standard. That’s a bold claim! Many tokens, especially in the DeFi space, are built on top of existing blockchains like Ethereum without a clear, essential role. If a token isn’t securing the network or driving adoption, it’s hard to justify its value long-term.

Take memecoins as an example. Coins like Dogecoin started as a joke but gained traction thanks to community hype. hitesh.eth even addressed this in a reply, noting that memecoins run on “memetic value”—the buzz and cultural appeal that drives their price. But he warns that this value might not last unless the token evolves to serve a practical purpose as adoption grows.

Spotting the Good from the Bad

So, how do you tell if a token is worth your time? hitesh.eth’s logic is simple: if the token isn’t needed to run or grow the network, it’s likely “trash,” as Abcrypton001 (@Abcrypton01) put it. For instance, a crypto credit card rewarding you with its native token (like Aj (@AIFuturenama) mentioned) can be a solid use case. The token incentivizes usage, aligning its value with the network’s success.

On the flip side, tokens created just to pump and dump—where the only goal is to “go up” so creators can cash out—are red flags. These are the liabilities hitesh.eth warns about. Sticking to 5-8 well-researched tokens, as Dr Rafa (@brave_raf) suggests, can help you avoid the hype traps.

Memecoins: The Wild Card

Memecoins throw a curveball into this theory. With a market cap hitting $62 billion at times, Dogecoin proves that humor and community can drive value—especially with a little help from tweets by figures like Elon Musk. But hitesh.eth points out that while memetic value can kickstart a coin, sustainability comes from adoption and utility. If a memecoin doesn’t evolve, it risks fading when the meme dies out.

What This Means for Investors

As someone who’s spent years covering crypto at places like CoinDesk, I’ve seen countless tokens come and go. The takeaway here is clear: do your homework. Invest in tokens with a purpose—those that secure networks, reward users, or bootstrap growth. Platforms like meme-insider.com are great for digging into the latest trends and understanding which memecoins or utility tokens might have staying power.

hitesh.eth’s post isn’t just a hot take—it’s a call to rethink how we value tokens in the blockchain world. Whether you’re into Bitcoin, DeFi, or the latest memecoin craze, aligning your investments with networks that need their tokens is a strategy worth considering. What do you think—got a favorite token that fits this mold? Drop your thoughts in the comments!