Crypto Ascends as the Attention Economy Dominates the Digital Realm

In a recent newsletter, Variant Fund's Li Jin highlights the efficient conversion of attention value into economic value through meme coins and NFTs compared to Web2 platforms. She emphasizes that the current Web2 era lacks effective mechanisms to measure attention quality and capture its value, with advertising being an imperfect solution. Jin explores how crypto represents the next evolution of the attention economy, where tokens like meme coins and NFTs act as "attention assets," measuring and capturing attention value in real-time. She highlights the emergence of new financialized markets around attention, such as Perl, Fantasy.top, and Friend.tech, which allow users to profit from correctly predicting the success of attention-grabbing assets.

The Rise of Crypto in the Era of Attention Economy

In the rapidly evolving digital landscape, the attention economy has emerged as a dominant force, with platforms vying relentlessly for user attention to drive revenue. However, current mechanisms employed by Web2 platforms, such as advertising and data collection, have proven insufficient in capturing the true value of attention.

Enter cryptocurrencies, particularly meme coins and non-fungible tokens (NFTs), which have revolutionized the attention economy by providing more efficient means of quantifying and monetizing attention. As Variant Fund co-founder Li Jin aptly observes, these "attention assets" act as real-time indicators of popularity and engagement.

Web2's Imperfect Attention Markets

The shortcomings of Web2 platforms stem from their limited ability to accurately measure the quality and intensity of attention. Advertising, the primary revenue model for these platforms, is often plagued by inaccurate attribution and fails to fully capture the value of certain attention types.

Furthermore, the reliance on data collection raises concerns about privacy and the potential for misuse. Web2 platforms often amass vast amounts of user data to tailor advertising campaigns, but this approach fails to empower users with ownership or control over their attention.

Crypto: A New Paradigm for Attention

The emergence of cryptocurrencies offers a transformative solution to these challenges. Meme coins, such as Dogwifhat, have demonstrated the ability to generate significant economic value based on the attention they garner. The sale of an NFT depicting Achi, the dog featured in the Dogwifhat meme, for over $4 million on the Foundation marketplace is a testament to the economic power of these attention assets.

NFTs, by their very nature, provide a tamper-proof record of ownership, empowering users to capture the full value of their attention. Platforms like Perl, Fantasy.top, and Friend.tech have emerged to facilitate financialized markets around attention, enabling users to profit from correctly identifying successful assets, creators, or content.

Attention as a Collective Value

The Web3 iteration of the attention economy marks a significant departure from its Web2 counterpart. In Web3, ownership of attention assets is distributed throughout the value chain, empowering everyone from content creators to early adopters.

Unlike Web2, where attention is treated as a commodity to be monetized by a select few, Web3 fosters a more equitable distribution of value. This shift empowers users to actively participate in the attention economy, reaping the rewards of their contributions.

Tokens as "New Go-to-Market Strategies"

Meme coins and NFTs are not merely novelties; they represent a fundamental shift in how attention is generated and monetized. By functioning as "new go-to-market strategies," tokens can bootstrap initial attention, attracting a speculative community that fuels organic interest.

This process creates a virtuous cycle, where the perceived value of a token drives further attention, leading to increased demand and ultimately, greater economic value.

Conclusion

As the attention economy continues to evolve, cryptocurrencies are poised to play an increasingly significant role. By providing more efficient markets for attention, meme coins and NFTs empower users, enabling them to capture and monetize the attention they generate.

Web3's distributed ownership model unlocks the true potential of the attention economy, fostering a more equitable and engaging digital landscape for all.