“TikTok Refugees” Flock to Xiaohongshu, Related Memes Surge in Popularity

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With the US government’s ban on TikTok citing supposed national security concerns, it has mandated its parent company, ByteDance, to divest TikTok by January 19, or face a ban.

Last Friday, the US Supreme Court held arguments regarding an appeal related to TikTok, but no final decision has been announced yet. Media analyses suggest that the justices may lean towards supporting the government’s stance, thereby upholding the TikTok ban. Should the ban take effect, third-party platforms like Apple and Google will need to cease supporting TikTok.

“Fleeing” to Xiaohongshu

Many American TikTok users assert that they see Xiaohongshu as a similar alternative to TikTok. To express their dissatisfaction with the US government’s decision, which they argue is based on an alleged “national security threat,” they have turned to Xiaohongshu. RedNote (the international version of Xiaohongshu) has quickly gained popularity in the US, becoming the top free app in the Apple App Store.

These users are sharing their life photos and videos on Xiaohongshu, referring to themselves as “TikTok refugees from the US,” and explaining their reasons for switching platforms.

For example, a content creator by the username allieusyaps stated that he and other creators would not return to Instagram or Facebook but choose to move to Xiaohongshu. He humorously noted in a post, “Look, I might be out of work next week, but hey, we’re learning Mandarin now!”

Another creator, Krystan Walmsley, shared a video demonstrating how to set up and decorate her Xiaohongshu account. She excitedly stated, “This app is so cute, it’s been a lot of fun so far!”

Market Surge and the Emergence of Meme Tokens

Amid the rising popularity of Xiaohongshu, the cryptocurrency market has begun to see the emergence of Meme concept coins associated with the platform. On January 14 at 1:00 PM, a token named MOMO surged from a market cap of $500,000 to $15 million. Newly emerged names like Shudu Captain and Rednote also appeared, along with the introduction of MOMO NFTs.

The Iconic Xiaohongshu Meme — MOMO

As a unique cultural symbol of Xiaohongshu, “momo” has generated significant buzz in the Chinese internet. Initially, “momo” was the default username generated for WeChat users logging into Xiaohongshu but unexpectedly gained more meaning among netizens, becoming synonymous with “anonymous invisibility.” Thus, a vast “momo army” emerged, actively participating in popular comment sections on Xiaohongshu, discussing a wide array of topics. When foreign users began flooding into Xiaohongshu, “momo” evolved into a phenomenon Meme, even humorously referred to as an excellent symbol of Meme tokens — where everyone in the community is “momo” and the main character.

Launched on October 2, 2024, MOMO soars in value today, at 1:00 PM, achieving a successful revival, with the most profitable user gaining $201k from initial purchases made at 2:00 AM.

MOMO’s token distribution is relatively healthy, with no obvious manipulation addresses, but this raises a concern: without strong market makers driving token growth, its rise relies almost entirely on market sentiment. This dynamic can lead to latecomer retail investors effectively purchasing tokens from earlier investors, resulting in many getting trapped at peak prices.

MOMO NFTs — The Adorable MOMO Capturing Hearts

As Xiaohongshu skyrockets in popularity, MOMO NFTs have also emerged, featuring various adorable images of MOMO that have captivated many with their charm. The total supply of NFTs is 3,333, with developers holding 100, 1,000 reserved for whitelisted minting priced at 0.1 SOL, while 2,233 are available for public minting at a cost of 0.4 SOL. However, despite the higher price, the demand driven by Xiaohongshu’s popularity led users to mint their unique NFTs.

Currently, there are 559 NFT holders, with a listing rate of 15.91% and a holder distribution of 16.77%. The price of NFTs started at a low of $30 and surged to $100, currently stabilizing around $30.

Risks Behind the Market Surge

While Xiaohongshu has rapidly ascended as a substitute for TikTok, leading to a wave of Meme concept coins, the associated risks and challenges cannot be overlooked. Here are three primary aspects:

1. Market Speculation: With the popularity of Xiaohongshu, a multitude of Meme concept tokens have captured investors’ attention. However, the prices of these tokens are often heavily influenced by market sentiment and social media discussions, leading to significant volatility and uncertainty for users. Therefore, it is crucial for investors in these tokens to adopt a cautious approach and avoid blindly following trends.
2. Lack of Practicality: While Meme tokens may generate market enthusiasm in the short term, they generally lack tangible applications and market demand. Investors should thoroughly assess the long-term sustainability and value of these tokens before making any investments.
3. Third-Party Risks: With the TikTok ban still in limbo, any changes in policy could impact investors. The future landscape remains uncertain, necessitating close attention to relevant information to address potential risks.

Conclusion

In the context of the TikTok ban, the rapid rise of Xiaohongshu not only provides a new social platform for internet users but also creates new opportunities for investors. During this wave of enthusiasm, Meme concept tokens related to Xiaohongshu, such as MOMO, have garnered significant attention and attracted a large pool of investors. However, before reveling in the advantages offered by this emerging market, it is essential to remain aware of the accompanying risks and challenges. Whether this momentum will sustain long-term growth or prove to be a fleeting trend remains to be seen. Nonetheless, this wave of cultural migration and investment is bound to have a profound impact on the landscape of the internet economy, warranting our ongoing attention and contemplation.

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