The reason behind the prevalence of cult memes is actually the psychology of "emotional compensation"?

Original author: hitesh.eth

Original translation: TechFlow

Introduction

Recently, with the emergence of the new Meme shouting king Murad, you should also see a high-frequency word repeatedly appearing:

"Memecoin Cults"

Cults are of course an interesting metaphor, which refers more to a phenomenon that appears in the cryptocurrency community, including but not limited to: strong group identity, irrational beliefs, missionary propaganda, and worship of shouting leaders.

Correspondingly, cult Meme coins have a good increase, but the question is how can this seemingly CX, old-fashioned and superficial logic have a large number of "believers"?

In addition to the pure profit-seeking motive, the popularity of Memecoin Cults may be far from simple.

This article interprets the current popular cult Meme phenomenon from the perspective of compensatory psychology, which will help you better understand how everyone "questioned Meme, understood Meme and embraced Meme" step by step in the current super cycle and formed an unbreakable consensus circle.

The formation of the "Memecoin Cult" follows a similar psychological and social process to the formation of other cults. But in the current environment, it is driven by economic losses, emotional attachment, and social verification through crypto markets and online communities.

Here is a breakdown of the different stages of thinking during the creation of the Memecoin cult:

Disillusionment with Utility Tokens — Losses and Distrust

Retail investors often start their entry into crypto by losing money in utility tokens or VC-backed projects, and this is where the initial psychological shift occurs:

Cognitive Dissonance — People believed in the utility or long-term value of these tokens, but after experiencing financial losses, their minds are in conflict. They believed these assets could deliver, but the reality did not match their expectations.

Loss of Trust — People are disappointed with the promises of these utility tokens. Financial losses lead to a loss of faith in the system (VC-backed or utility-focused projects), which triggers a psychological need to find an alternative narrative to explain why they were wrong.

Seeking Redemption – After disappointment, people’s minds become open to new ideas, especially those that promise faster or more dramatic financial gains. This openness sets the stage for their eventual move to Meme Coins.

Meme Coin Success – Belief Reinforced by Gains

Next, individuals earn money by investing in Meme Coins, which causes an emotional shift in their mindset:

Relief and Validation – After losing money in utility coins, profiting from Meme Coins feels like validation. People begin to associate Meme Coins with success, which triggers confirmation bias: they begin to believe that Meme Coins are not only profitable, but also a legitimate alternative to utility tokens.

Bias Reinforcement – During this stage, people’s minds begin to create a narrative that Meme Coins will have trouble running. People’s bias turns to meme coins as a new path to financial success, despite the lack of fundamentals to support them. The mind does not need the deep utility of meme coins; the relief effect of profit and emotion provides enough validation.

Social Frustration – Struggles to Convince Others

Individuals begin to promote their new belief in meme coins to others, but face resistance:

Inability to Articulate Vision – Although individuals believe in the potential of meme coins, they have difficulty effectively communicating their vision to others. This may be due to the lack of a coherent theory behind meme coins, resulting in them being emotional beliefs rather than logical.

Social Friction – Resistance from others creates frustration. The mind seeks social validation of newfound beliefs, but without external confirmation from peers, beliefs remain personal and internal. This prompts them to double down on their beliefs and continue to actively promote meme coins on social media.

Cognitive Consolidation – The more a person experiences rejection from others, the more entrenched their beliefs become. At this stage, the mind begins to look for external reasons as to why others do not understand what they “see”.

Meeting a Charismatic Meme Theorist – Emotional Connection

The turning point comes when the individual encounters a charismatic figure who provides a compelling narrative about the future of Memecoin:

Emotional Appeal – Charismatic theorists provide the missing intellectual framework that individuals need to support their beliefs. These theories explain the chaotic, speculative world of meme coins and provide a rationale for why they are the future.

Empathy – After studying the charismatic figure, individuals find similarities in their stories, which creates an emotional bond. The theorist’s backstory resonates because it mirrors the individual’s own journey – financial loss, disillusionment, and redemption through meme coins. This emotional connection solidifies trust in the theorist’s ideas.

Cognitive Closure – The mind finally feels a sense of closure. The charismatic figure’s narrative resolves the internal conflict (between past losses and current gains) and provides a structured way to explain why meme coins are the future. The theorist’s framework becomes a new intellectual pillar for the individual’s belief system.

Evangelism on Social Media – Dopamine Burst

When individuals begin to promote the ideas of charismatic theorists on social media, their influence begins to grow, creating powerful psychological reinforcement:

Dopamine Feedback Loop – Every time an individual gets a like, comment, or new follower on social media, the brain gets a hit of dopamine. This reward system reinforces the behavior of spreading the theory, making people feel validated by external recognition.

Memecoin Performance Reinforcement – If the Memecoin price rises during this time, individuals receive additional validation, further solidifying their belief in the currency and the theorist’s ideas. The brain begins to associate financial success with the spread of the ideology, creating a powerful feedback loop of financial and social rewards.

Social Identity Shift – As social media influence grows, individuals begin to see themselves as spreaders or promoters of Memecoin. Their sense of identity becomes intertwined with the success of Meme Coin and the ideas of the charismatic ideologue.

Meme Cult Formation – Leaders and Shared Beliefs

Finally, the individual’s beliefs become part of a wider movement as others with similar biases and frustrations find an equally charismatic ideologue:

Discovering the Cult Leader – Other Meme Coin enthusiasts who have similarly lost faith in traditional coins and are bullish on Meme Coins, eventually find an equally charismatic leader. This creates a large following around the leader’s narrative, and individuals realize they are part of something larger than themselves.

Shared Belief System - The Meme Coin Cult is formed around a shared belief in the theorist's ideas, the profitability of Meme Coins, and the emotional and financial success they promise. The charismatic leader becomes the center of this belief system, providing intellectual and emotional validation for the group's collective biases.

Echo Chambers and Group Reinforcement - As more people join the movement, the group becomes an echo chamber, with members reinforcing each other's beliefs about Meme Coins. The charismatic leader's theories become almost sacred, and people are discouraged from questioning them. Individual thoughts now operate in a closed system, dissenting opinions are dismissed, and the collective belief in Meme Coins becomes stronger.

Cult-Like Behavior – Full Cognition and Commitment

At this stage, the individual is fully committed to the Meme Coin movement:

Ingroup/Outgroup Think – The individual now views Meme Coin believers as the “ingroup” and anyone who doubts Meme Coin as the “outgroup”. People’s minds begin to protect the cult’s belief system, dismissing skepticism and doubling down on the Meme Coin narrative.

Cognitive Reinforcement and Social Identity – The individual’s identity is now inextricably tied to the Meme Coin movement. They derive their self-worth from social media influence and Meme Coin performance, and the ideas of the charismatic leader are seen as the absolute truth.

Continued Dopamine Rewards – The individual continues to receive regular dopamine hits from social media interactions and Meme Coin price movements, making it increasingly difficult to disengage from the belief system.

In this process, individuals’ minds shift from economic disillusionment to emotional connection with the charismatic leader, followed by intellectual validation of their biases, and ultimately full cognitive and social commitment to the Meme Coin Cult.

This cycle is fueled by emotional, social, and economic reinforcement, making it a powerful feedback loop that is difficult to break.

The Meme Coin Cult operates as a shared belief system that provides economic hope and social belonging, all driven by the charismatic ideologue at its center.

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