Why is the PING token of the x402 protocol so similar to the BTC inscriptions back in the day? This narrative is just getting started.

Recently, the crypto community has been buzzing about the Meme coin PING on the x402 protocol. Many people say it’s very similar to the BTC inscription frenzy of 2023.

But in what ways are they similar? Will we see a repeat of the inscription market madness? Here’s my take: Yes, and it’s already happening.

Let’s Start with the Essence: On-chain Data + Off-chain Interpretation

How did inscriptions work back then?

Users would send transactions to the BTC mainnet, occupying specific UTXOs. But here’s the key—BTC mainnet itself had no idea which transaction counted as a “valid inscription.” The real decision-maker was the Ordinals protocol indexer. Like a referee, it scanned all on-chain transactions and used the “First is First” rule to decide who the real owner was.

PING? The formula is almost identical.

You send USDC on the Base chain to the address returned by x402scan, thinking you’re minting $PING? Wrong. Neither the Base chain nor the x402 protocol recognizes this—as far as they’re concerned, it’s just a regular ERC20 transfer.

What actually turns this transaction into a “mint” is the x402scan indexer—it scans USDC transactions on the Base chain, records them at a 1 USDC to 5000 $PING ratio, and then issues tokens to you in an off-chain database.

See the pattern? The core logic is always: On-chain traces, off-chain rulemaking.

Not Welcomed, But Unstoppable

When inscriptions first appeared, the Bitcoin Core team was furious. Why? Because aside from clogging the BTC mainnet with dust transactions, there seemed to be little actual value.

PING is in a similar situation now. But just like the BTC mainnet back then, the x402 protocol, as an open standard, simply can’t control these “rogue” activities in the short term.

To put it bluntly, at least inscription players’ assets were still on the BTC mainnet—they could salvage some BTC if things went south. But PING’s mint fees? All go into the treasury wallet designated by x402scan. The team is both crowdfunding and issuing tokens, while the x402 protocol itself is just being “free-ridden” without any real benefit.

But don’t be too quick to criticize—this is actually a “charge the front” operation. It forcibly creates use cases for x402, showing immediate results. It serves as a protocol stress test and is also the trigger point for the x402 narrative. The potential for future improvements and ecosystem growth starts here.

Evolution Path: The Inscription Market Script Will Repeat

PING’s value is anchored to the x402scan indexer. That’s also its problem:

• Assets are custodied by a centralized entity
• It goes against the x402 protocol’s original “AI Agent payment channel” vision
• It may not be compatible with other x402 protocols
• There’s a lack of unified standards for minting, transferring, or burning

So, referencing the evolution from BRC20 → ARC20 → SRC20 → Runes, we’ll definitely see more so-called “orthodox” new protocols emerge.

Some will improve custody, some will change the minting process, some will seek native protocol support… all sorts of approaches will be tried.

To exaggerate a bit—even if the x402scan team disappears and the treasury vanishes, the trend is already in motion, and Pandora’s box can’t be closed.

Final Thoughts

The explosion of the x402 narrative is inevitable. PING is just the call to arms; the way the market evolves from here is still full of uncertainties.

This is purely my personal understanding and logic, not investment advice. But one thing is certain—the upcoming excitement is worth checking out, so don’t stress.