In the fast-paced world of tech and blockchain, trends often repeat themselves in surprising ways. A recent post on X (formerly Twitter) by @0xkyle__ caught our eye at Meme Insider, sharing insights from @kylascan that draw striking parallels between the current AI boom and past crypto cycles. The thread dives into why AI might be heading toward social media models, much like how crypto projects pivoted when hype faded. For those in the meme token space, this is particularly relevant—after all, memes thrive on community, speculation, and social engagement.

The post features a compelling breakdown of four key points, presented in an image that's worth a close look:

Let's unpack these ideas and see how they connect to the meme token ecosystem.

The High Cost of AI Without Clear Demand

First off, AI development is insanely expensive—think billions poured into training frontier models like large language models (LLMs). Yet, only a tiny fraction of users actually pay for these services. Some companies are even ditching their social media arms because building one from scratch signals they're chasing volume through eyeballs, data, and ads to offset those massive scaling costs.

This reminds us of early blockchain projects. Remember when crypto startups burned through funds on tech without real user adoption? Meme tokens, on the other hand, flipped the script by leveraging low-cost virality on platforms like X or Telegram. No billion-dollar training needed—just a funny idea and a pumped community.

Social Media as a Desperation Play

Point two hits on social media being a "last-resort" monetization strategy. Big tech can't always profit from software licensing, subscriptions, or enterprise tools, so they fall back on attention. Users scroll endlessly, advertisers pay up, but it's not without backlash. Surveys show nearly half of teens feel social media harms their peers, and experts like John Burn Murdoch suggest we've passed "peak social media."

In crypto, we've seen this too. When direct revenue dries up, projects turn to "community building" as a buzzword for engagement farming. Meme tokens embody this perfectly—they're born from social hype, where speculation isn't just a side effect; it's the core governance mechanism. Holders "vote" with their buys and sells, keeping the narrative alive without fancy apps.

AI's Maturity Gap: Supply Outpaces Use Cases

The third insight points to a maturity issue in AI. Capabilities are exploding faster than practical applications, and the economy hasn't caught up. This leads to spectacles over substance, with risks of misuse. While the tech is impressive, it needs policy and guardrails to channel it productively.

Sound familiar? Crypto faced the same in its Wild West days—tons of innovation in DeFi and NFTs, but real-world utility lagged. Meme coins, though often dismissed as pure speculation, have evolved into cultural phenomena that drive adoption. Think Dogecoin or Shiba Inu: they started as jokes but built massive communities, influencing everything from charity drives to blockchain awareness.

Mirroring Crypto's Late-Stage Pivots

Finally, this pattern echoes late-stage tech shifts. In crypto, when speculative gains slowed, projects rebranded around "community" and "social." Web3 saw utilities collapse into "metaverse" marketing (looking at you, companies that renamed overnight). Now, AI is trending toward social platforms to keep investors hooked and narratives buzzing.

For meme token creators and holders, this is a playbook. Speculation is governance in our world—prices reflect community sentiment, and social media keeps the fire going. As AI intersects with blockchain (like AI-powered meme generators or on-chain agents), we could see hybrid models where memes drive AI adoption, or vice versa.

The thread sparked replies like "Speculation IS governance, lol" from @DeFi_Banana and "We don’t vote anymore - we long or short" from @axylon_, underscoring how trading has become the new decision-making tool in crypto. Even @VelinusSage chimed in about needing better AI curation layers, hinting at future innovations.

At Meme Insider, we see this as a wake-up call for blockchain practitioners. Whether you're launching the next viral meme or building AI-integrated dApps, focus on sustainable community engagement over hype. Dive deeper into similar discussions on X and stay tuned for more insights to level up your game in the meme token space.