In the fast-paced world of crypto, where tokens can skyrocket to billion-dollar valuations overnight, one tweet from Soju, co-lead at MeteoraAG, has sparked a fresh debate on what really drives token success. Posted on X (formerly Twitter), the thread cuts straight to the chase: minor utilities just aren't cutting it for big-league coins. Instead, it argues for building an ultra-successful business first—or embracing the memecoin vibe until you're ready.

The Pitfalls of "Utility" in High-Valuation Tokens

Let's break it down. When a token hits that billion-dollar market cap, perks like early access to new launches or trading fee discounts start feeling pretty insignificant. As Soju points out, these features become "moot" because they don't scale with the token's massive size. Think about it: if you're holding a piece of a billion-dollar pie, a small discount on trades isn't going to move the needle much for your investment.

The real game-changer? An incredibly thriving business backing the token. Examples like Binance's BNB or the emerging Hyperliquid platform show how this works. These projects don't just offer utilities—they aggressively buy back and burn tokens, reducing supply and potentially boosting value. "BID the F out of the coin," as Soju vividly puts it, referring to heavy buybacks that signal strong confidence and financial health.

But even established players can stumble here. Take Jupiter Exchange on Solana, a popular decentralized exchange (DEX) aggregator. Despite introducing buybacks—where the project uses revenue to repurchase its own JUP tokens from the market—the price chart tells a sobering story. As highlighted in the tweet's image, the token's value took a nosedive post-buyback announcement, suggesting that the underlying business wasn't robust enough to support its lofty valuation.

Why Memecoins Might Be the Ultimate Starter Strategy

So, what's the workaround for projects that aren't quite at Binance levels yet? Soju's advice is refreshingly straightforward: "Be a memecoin, until your business is successful enough to become a revenue-share coin."

Memecoins, those viral, community-driven tokens often inspired by internet jokes or trends, thrive on hype, memes, and social momentum rather than promised utilities. Tokens like Dogecoin or Shiba Inu have shown how this approach can build massive communities and valuations without the pressure of delivering complex features right away. It's like starting a party with fun vibes before worrying about the catering.

Once the business matures—say, by generating real revenue through trading fees, partnerships, or other streams—you can transition to a revenue-share model. This means distributing profits back to token holders, perhaps through dividends, buybacks, or staking rewards. The key is timing: don't promise the world too soon, or you risk disappointing holders when reality doesn't match the hype.

Lessons for Blockchain Builders and Investors

This perspective is a wake-up call for anyone in the meme token space or broader blockchain ecosystem. For builders, it underscores the importance of aligning tokenomics (the economic design of a token) with actual business performance. Rushing into utility claims can backfire if the project can't deliver sustainable value.

Investors, on the other hand, should look beyond surface-level perks. Ask: Does this token have a powerhouse business engine? Or is it riding on meme magic for now, with potential to evolve? In the Solana ecosystem, where Jupiter operates, we've seen similar patterns with other tokens—volatility is high, but the ones that endure often blend meme appeal with eventual real-world utility.

As crypto evolves, strategies like this could shape the next wave of successful projects. Whether you're eyeing memecoins for quick flips or long-term holds, keeping an eye on business fundamentals is crucial. What do you think—should more projects start as memecoins? Dive into the conversation on X and share your takes.