How MemeCoin leads the new trend in the cryptocurrency market

Written by: Web3Port Foundation

Preface:

Recently, Murad Mahmudov delivered a keynote speech entitled “Memecoin Super Cycle” on Token2049, which received more than one million views and interactions, triggering great discussions on MemeCoin.

MemeCoin, a relatively fair Public distribution logic and unique community cultural value, make it an important narrative and hot spot in the current market, and its huge trading volume and huge price fluctuations attract the attention of traders.

We hope to help readers understand the history and causes of MemeCoin, the factors that broke out on the MemeCoin track and the necessary conditions for success, and how to invest in MemeCoin.The content is for industry learning and communication only and does not constitute any investment reference.

1. Traceability MemeCoin

What is MemeCoin?

MemeCoinIt’s a kindCryptocurrency based on internet pop culture, memes or funny content.This type of currency is usuallyNo clear technological innovation or practical application scenarios, mainly rely onSocial media and community drive,passViralGet popular.

MemeCoin generally has certain common characteristics:

• Project narratives are easy to understand and disseminate and do not contain abstract concepts;

• There is no clear technological innovation, complex product or actual revenue support;

• Includes a certain memes culture, which can cause a certain degree of interaction or emotional resonance;

• Rely mainly on promotion and marketing from social media and user communities;

• Tokens are distributed fairly, and Token itself has no clear Utility and purpose.

Because MemeCoin is associated with classic memes, funny pictures or celebrities, its price volatility is very high and is often influenced by social media hype, community behavior, and speculative sentiment.Early MemeCoins such as Dogecoin and Shiba Inu rely on these meme cultures to quickly gain attention.

MemeCoin VS Traditional encryption project:

Although MemeCoin and traditional crypto projects (such as public chains, DeFi protocols, Dapps, etc.) belong to the cryptocurrency field, they have significant differences in core values, driving forces, and how the market understands and responds.

In summary,Traditional encryption projectsFocus on technological innovation, application scenarios and product development, have complex market narratives and valuation models, and support the Token value based on long-term market expectations and the revenue capabilities of actual products.

MemeCoinIt relies entirely on social media hot discussions and community promotion, and the token itself is a product of the economic and cultural symbol of attention.It has no complex technology or product support, and price fluctuations are mainly driven by speculative demand and market sentiment, which is more like aSpeculative LotteryorSocial Games.

In essence, MemeCoin is an attention economy, a fusion of cultural and speculative attributes, which reflects a new form of the combination of Internet culture and capital markets, demonstrating the influence of attention economy in the cryptocurrency field.

The principle behind the popularity of MemeCoin

MemeCoin is able to gain popularity, which can be explained mainly through three principles in economics:Irrational prosperity, network effectas well asDistribute demand fairly.Together, these principles explain the phenomenon that MemeCoin can quickly spread and gain high attention in the market in the absence of technical support or intrinsic value.

Irrational prosperity:

The concept of “irrational prosperity” was proposed by economist Robert Schiller,The driving force for rising asset prices does not come from the intrinsic value or rational analysis of assets, but more from investor sentiment, market speculation and speculation..

The price increase in MemeCoins is often closely related to hype on social media platforms such as Twitter, Reddit, Telegram, etc., rather than any actual technological innovation or product application.Public comments and support from celebrities (such as Elon Musk) to MemeCoin such as Dogecoin can trigger huge market volatility in a short period of time, attracting more investors to influx, thereby driving further price increases.

The price of MemeCoin has risen sharply in the short term, and the wealth effect of early investors has attracted more people because FOMO (fear of missing opportunities) is trying to participate.This huge short-term gain and the “going wealth myth” further aggravates the speculation in the market, causing more investors to ignore the actual value of MemeCoin, thereby promoting irrational prosperity.

Network Effect:

Network effect refers toThe phenomenon that the value of a product or service increases with the increase in the number of users.A key feature of the network effect is that when the number of users reaches a certain critical point, the influence and value of the product will explode.

The value of MemeCoin does not come from its technology or application, but gradually amplifies through user participation, discussion, promotion and purchase behavior, forming a strong network effect.Through user interaction and community participation, the MemeCoin project quickly accumulates a large number of attention and investors, forming a collective community consensus. When this community consensus reaches a certain “critical point”, it accelerates its marketing and price increase..

“Fair Game” Theory

Fair Play Theory emphasizes that participants are more willing to participate in a game or market they think is fair.

For MemeCoin, Token’s public distribution mechanism (Fair Launch), decentralization and low-threshold participation in the distribution process, and the transparency of Token chips and on-chain liquidity can allow ordinary investors to feel fair opportunities, and all players canParticipate in investment and trading on the same starting line, so there is a greater willingness to participate, which has promoted the dissemination and market performance of MemeCoin.This mechanism can attract more people to join MemeCoin to hype “game”, form a strong community base and further promote its popularity.

MemeCoin History

From the earliest MemeCoin Doge, to the sporadic MemeCoin hype, to the popular track and narrative logic of MemeCoin, it went through several stages:

• Early MemeCoin stage: Early Memecoin was born with the Meme culture and featured a single token, and did not form a relatively unified Meme market.The earliest Memecoin was Doge, thanks to the strength of Doge’s online/offline community and Elon Musk’s call (frequently posting tweets related to Dogecoin), which promoted the surge in the currency price and the emergence of the wealth effect.

• MemeCoin hype early: The characteristic of this stage is to imitate Dogecoin’s style and focus on funny and interesting Internet culture.Typical representatives areShiba Inu, Floki, and Pepe have attracted the attention of many market users with their unique cultural consensus, huge user base and huge wealth myths, and promoted the spread of Meme culture and the rise of hype.

• Inscription MemeCoin Hot Trend: Opened in March 2023 – May 2024, with Bitcoin Core DevelopersCasey RodarmorThe Ordinals protocol was created, which gave birth to the development boom of the Bitcoin network NFT and inscriptions. Bitcoin token protocol standards such as BRC20, ORC20, Rune, ARC20, Taproot Assets have emerged, and tens of millions of inscriptions have been generated.These inscriptions can be counted as MemeCoin on the BTC network, most notably ORDI, Sats, Rats.

• Solana MemeCoin Speculation craze: In 2023–2024, the Meme market on Solana exploded and began to lead the market, throughFair distribution, airdrop, Meme pre-sale, community eventsAnd other methods have promoted the Meme speculation boom.Typical projects include Bonk, MYRO, SILLY, WIF, BOME, SLERF, etc.Many speculators are trying to gain fast wealth by buying MemeCoin, resulting in a large number of new MemeCoin projects emerging in the market.These projects usually gain widespread attention through social media, celebrity effects, or community hype in a short time, but many are also accompanied by huge price volatility and high risk.

• MemeCoin Infrastructure Hot: The development and improvement of meme issuance platform, trading BOT and market tools led by Pump.Fun has further promoted meme’s popularity by upgrading infrastructure.These platforms and tools greatly facilitate the creation, purchase and transaction of MemeCoin, and prompted the explosion of Meme.

• MemeCoin Hype Differentiation: On September 15, 2024, Binance launched 3 Meme coins (Neiro, Turbo and BabyDoge) in one day. After the subsequent dispute over the capitalization of Neiro and NEIRO tokens, the Meme coins market has set off a new round of hype.This round of Meme coin speculation mainly revolves around:The battle between the upper and lower case of the naming master, donation of V God and V God selling coins to pull the plate, Cult (sarcastic culture) MEME currency revivalWait for expansion.Typical cases are: Neiro/NEIRO, MOODENG, TERMINUS, PAC, etc.

2.MemeCoin track analysis

MemeCoin track explosion

Token overproduction and crisis of trust:

The total number of tokens included on the CoinGecko market website exceeds 140,000, and the number of tokens created on major public chains (including L2) has also increased by tens of thousands.In the first 4 months of 2024 alone, more than 500,000 new tokens have been launched on the market, with more than 5,000 new tokens added every day.

Compared with before 2017, the number of tokens on the market has increased geometrically, and the expansion of the number of tokens has greatly distracted the market, resulting in the value of many projects being severely diluted.

At the same time, more crypto projects and the launch of tokens cannot generate stable cash flow, cannot bring long-term business growth and profit expectations, but only hype expectations remain.Many new tracks and new hot topics, narrative logic, etc. in the past have been falsified after two or three rounds of bull and bear cycles, resulting in a crisis of trust in the value of tokens.

MemeCoin has been favored by market traders, especially retail investors because of its fair token chip issuance mechanism, unique cultural and community cohesion that does not rely on products, and potential wealth-making effects (100X, 1000X, etc.).

There are no hot spots in the market

Since the end of the 2021–2022 DeFi Summer bull cycle, the crypto market has fallen into a bear market as a whole.

Although crypto practitioners have been chasing new market hotspots, from 2023 to 2024, there have been many hotspots in the market, including BTC ETF and BTC halving, ETH upgrades and ETFs, BTC inscriptions, BTC L2, LRT, AI, TGMiniAPP, etc.However, except for BTC ETF, most other hot topics and narratives have weak sustainability, poor universality, and lack of money-making effects. They are far from being compared with previous market narratives such as DeFi that are highly sustainable and innovative..

Most of the liquidity in the market is focused on a few mainstream currencies such as BTC and ETH. Most of the altcoins lack liquidity and the market conditions are bleak.

In the overall market without hot spots, the demand for MemeCoin has been created. MemeCoin has a clear wealth creation effect, a strong community marketing atmosphere, and is highly attractive to ordinary retail investors.

Institutional currency (high market value, low circulation) valuation is severely inflated

In the past few rounds of crypto market cycles, investment institutions have achieved high returns through investing in crypto projects, so more and more crypto investment funds have emerged. The overall fund size of the funds has expanded, resulting in the crypto startup projects since 2023.Valuation has increased significantly compared to before 2022.

Judging from the projects I have learned, most crypto projects from 2023 to the present have a starting market value of $10–20M, and after one or two rounds of financing, the market value is as high as $50M. The public round and FDV after the exchange are generally above $100M., the FDV of some celebrity projects is as high as $1B and above.

From 2023 to 2024, popular projects launched on the TOP exchanges Binance and OKX, including ZK, STRK, SAGA, ALT, ENA, ETHFI, W, etc., are all institutional coins. The typical characteristics of Tokenomics are high FDVand low circulation, and higher Public prices (compared to the cost price of several rounds of financing).

Originally, the amount of altcoins that can be taken on in the market is limited (billions to tens of billions of dollars). These overvalued new projects have been listed and traded, which has squeezed out liquidity funds in the market, making it difficult to obtain sustainable buying.The market power has led to a negative downward trend after the new currency is launched on the exchange, and retail investors’ willingness to enter the market to take over has been greatly reduced.Moreover, with the continuous unlocking of subsequent tokens and the increase in release, the market continues to face huge selling pressure.

The large number of institutional coins has caused calls to oppose institutional coins in the market, and even evolved into a performance art, giving rise to the demand for Fair Launch projects. MemeCoin is fully circulated and unlocked during TGE, which is very suitable for investors.Psychologically, many retail investors see MemeCoin as a means to counter the institutional advantages gained from participating in private equity financing.

MemeCoin infrastructure

From the history of Meme, we can see that the richness and perfection of Meme infrastructure has greatly facilitated the transaction and circulation of Meme track projects.

The release of Uniswap’s innovative AMM DEX product has enabled DeFi summer and greatly facilitated the transaction of Meme coins. You only need to create a small amount of liquidity to directly open Meme trading on the chain.

The trading Bot track boom in 2023 has further enhanced the trading experience of Meme coins.The mainstream Bot track projects on the market include Maestro Bot, Unibot, BananaGun, etc., and their Bot trading volume has expanded sharply since 2023.These transactions can not only set limit orders, order transactions, new currency blocking, etc., but also launch special features such as anti-clip (Anti-MEV), anti-Rug (Anti-Rug) and selling and rush forward (FrontRun) to improve theUser trading experience.

The Meme distribution platform headed by Pump.Fun in 2024 further promoted the meme hotness by upgrading infrastructure.Pump.Fun greatly simplifies the block through simple token creation (users only need to enter the token name, token code, image, and pay a small amount of deployment fees), dynamic pricing curve, liquidity mechanism, etc.The process of creating and trading Memecoin on-chain promotes the democratization, communityization of MemeCoin, asset liquidity and convenience of trading.Many Meme trading platforms have emerged later, such as SunPump, MakeNow.Meme, Moonshot, Ape.Store, Four.meme, etc.

In addition, there are two types of infrastructure facilities, which have also promoted the Meme craze.One is a decentralized wallet, the other is a variety of market software tools such as GMGN, DEXTools, and DEX Screener to find smart money behavior on the chain, token chip distribution, contract security, etc., and then find opportunities to make profits.These two types of products facilitate users to find smart money on the chain and discover potential Meme coins, thereby increasing the probability of trading profitability.

Top exchanges favored

Top-level exchanges with Binance and OKX have successively launched MemeCoin, which has also created a good support for the development of the MemeCoin track.By launching the Top-level exchange, MemeCoin can greatly improve trading liquidity and market influence. At the same time, the huge user base of Top-level exchanges has also become the potential audience and buying power of MemeCoin.

Generally speaking, MemeCoin trading on DEX has relatively limited liquidity, with a market value of tens of millions of yuan being its upper limit. By launching a Top-level exchange, its market value ceiling can be increased, from a market value of tens of millions of yuan to a level of hundreds of millions of yuan.

The core factors of MemeCoin success

In general, MemeCoin needs a fascinating story (Memes cultural narrative) to succeed. The design and community culture of tokens must be unique and attractive to resonate and inspire investors’ interest, among many projects.Stand out; at the same time, there is a strong spontaneous community. An active and active community is the key to promoting the success of MEME coins. The power of the community can influence market sentiment and investment decisions; in addition, there is also a need for strong supporters and traders behind it.Can drive the price of the currency at critical moments.

Memes Culture

MemeCoin is a culturally driven, which arouses consensus and popularity through cultural atmosphere. Early Meme coins and many NFTs developed and expanded based on specific cultural consensus. Meme coins with cultural consensus have strong survivability and strong communication., universality and acceptance can allow users to gain a sense of participation and belonging, as well as a sense of consensus on cultural values.

Meme KOL Murad calls this culture “Cult Meme”.Cult refers to a highly focused, fanatical follower culture where fans show extreme enthusiasm and loyalty to a specific thing, such as a person, brand, concept or work. This cultural phenomenon usually revolves around a niche but influentialgroup development, distinguishing oneself from mainstream culture through common beliefs, behaviors or interests.

Murad believes that the best meme coins have more functions than almost all altcoins, which provide fun, reduce loneliness, identity — ——achieves the goals that DAO should have achieved, bringing resonance, emotional connection, and a sense of mission.and sense of meaning, entertainment and happiness have even promoted the construction of charity, story creation and creative and creative ideas.

For Meme Coin, a powerful meme cultural narrative is an important factor in its success. These cultural narratives give Meme Coin a strong vitality, promoting the cohesion of its community users, widespread communication on social media channels and expanding its influence.Typical cases include Doge, SHIB, Pepe, Bonk, etc.

Market hot spots

The market hotspots here refer to market hotspots with communication or novel characteristics.In today’s highly developed society of the Internet, these hot spots with communication and novel characteristics can attract great market attention in a very short period of time, that is, attention economy.

Relying on this, the Meme currency launched based on market hot spots can greatly arouse the market’s FOMO sentiment.This type is mainly driven by celebrities (Musk, Trump, V God) and market hot spots (Moodeng).

Meme KOL:

In modern business society, Muqiang has become a common consensus phenomenon.In the financial field, top investors have a wider audience. This type of financial KOL has a strong sticky audience and influence. Through KOL marketing, it can greatly promote the dissemination of Meme.

Behind the development and growth of many Meme coins, these KOLs are inseparable from the marketing and fueling of these KOLs.Many MemeCoins have almost zero value at first, but prices can soar quickly through KOLs and community hype, market speculation and virality.This has attracted a large number of speculators who want to make huge profits through short-term investments, forming a “wealth effect”.

Famous Meme KOLs include Ansem, Murad, etc.

MM Promotion

The growth and growth of any MemeCoin cannot be separated from the promotion of MM market makers.Due to AMM’s unique trading mechanism, a small amount of funds can cause a huge increase through MM market making, and the larger the volatility means higher potential profit expectations. Market making through MM can improve the money-making effect of MemeCoin.

For MemeCoin, only if there is a potential expectation of a profitable effect will someone take over and promote the full turnover of MemeCoin chips. MemeCoin without a turnover has no future.

For many MemeCoin, there have been many times in its historical cycle that the coin price has fallen by 80%, and then the market value has risen again and broke through a new high. This is the case of MemeCoin changing dealers. The early project party has already dumped and exited.The new MM fund relay continues to hype, promoting the continuation of the MemeCoin story.

CTO

In the crypto world, when the original developer (DEV) of the crypto project exits and lets the community take over the project leadership, a community takeover (CTO, Community Take OVer) occurs.

CTO behaviors include: establishing new social media accounts (Twitter), increasing project visibility on social networks, collaborating with influential people and launching various plans, investing in market software (such as DEX Screener, DEXTools).advertise.

The main purpose of CTO is to generate transaction demand for Meme coins by operating and maintaining the community, attracting user attention, expanding the influence of the fan group and the Meme coin community.

After a MemeCoin project is CTO, it means that retail investors will eliminate the lightning point of developers’ holdings, and the development of projects will be led by the community. For example, the disappearance of Satoshi Nakamoto and the rise of Bitcoin may be regarded as the most classic CTO model..

More successful Meme CTO cases include $POPCAT, $WIF, and $SPX.

3.MemeCoin Market Size

According to CoinMarketCap, the entire MemeCoin market size is US$53.5 billion, accounting for about 2.4% of the market value of the entire cryptocurrency market of US$2.4 trillion.

The top 10 MemeCoin in market value include Doge, SHIB, PEPE, WIF, BONK, FLOKI, POPCAT, BRETT, NEIRO, MOG.These MemeCoins are mainly distributed on the Ethereum and Solana chains.

As the MemeCoin market grows, they are no longer tools for short-term hype, but become an important narrative track and market trend of the crypto market, an important part of the crypto market and the crypto community, and an important driver for promoting the development of the crypto market.force.

The change in MemeCoin’s status (from short-term hype to becoming an important narrative track) indicates that the market size of MemeCoin will grow and grow accordingly.Judging from the market value scale and size of the current mature track of the crypto market, the market value of MemeCoin will gradually increase, so we can make optimistic predictions about it:

• The total market value of MemeCoin track: It further develops from the current market value of more than US$50 billion to the market value of US$1 trillion, and gradually increases from 2.4% to 8–10%.

• The market value of the top MemeCoin: There will be 1–2 MemeCoin with a market value of more than $100 billion, and 5–10 MemeCoin with a market value of more than $10 billion (currently there are 2 DOGE, SHIB);

• Top100 Market Cap: There will be 10–30 MemeCoins with market cap rankings within the Top100 of the Crypto Token Market Cap Ranking (there are currently 9).

• MemeCoin Purchase: More investors, venture capital companies, institutional traders, and traditional financial institutions will invest and trade in MemeCoin.

• MemeCoin Community: The size of the MemeCoin community will be further expanded, and its unique cultural consensus and market consensus will further gain the trust of investors and maintain lasting vitality.

4.MemeCoin Ecological Map

Currently, the number of MemeCoins on the market exceeds several million. Most MemeCoins have disappeared before their community consensus reaches a certain “critical point”. Only a very small number of MemeCoins can succeed and form cultural consensus, price and market value.Forward loop.

There are several cases of typical MemeCoin on the market:

$DOGE:

Dogecoin is one of the earliest MemeCoin, created in 2013 by Billy Markus and Jackson Palmer, and is inspired by the popular online “Shiba Inu” meme.Originally created to satirize Bitcoin and other cryptocurrencies, Dogecoin has quickly gained popularity, especially in communities like Reddit.

Dogecoin has no clear practical application scenarios, and is more used as a community reward tool or entertainment cryptocurrency.Its price volatility is very high, especially driven by Elon Musk’s tweet, which soared sharply in 2021, with prices rising rapidly from $0.007 to $0.73, achieving a 100-fold increase, with a maximum market value of more than $80 billion, creating a No. 100-fold increase.A wave of Meme’s wealth creation myth.

$SHIB:

Shiba Inu is a MemeCoin launched in 2020, and the creator is positioned as “Dogecoin killer”.It is an ERC-20 token based on the Ethereum blockchain.

The SHIB community drives its rapid popularity through social media and crypto platforms and gradually combines with DeFi and NFT, adding practicality.Compared with other MemeCoin’s pure narrative style, SHIB is characterized by its construction of a relatively complete ecosystem, including decentralized exchange (ShibaSwap), EVM-based L2 chain (Shibarium), and game ecosystem Shiba Games (launched aShiba Eternity, Shiba Metaverse (including NFT and Land).

$PEPE:

PepeCoin is a cryptocurrency based on Internet pop culture, inspired by the world-renowned meme character “Pepe the Frog”.Pepe is a representative image of the humor and culture of the Internet, used to express various emotions and ideas.

PepeCoin emphasizes entertainment and community drive, and has rapidly gained popularity with Pepe’s global cultural influence.PepeCoin’s popularity relies on the community’s sense of identity and humor for the image of Pepe and has attracted a large number of speculators.

$PEOPLE

ConstitutionDAO is a crowdfunding campaign to buy the first edition of the U.S. Constitution.

PEOPLE is a token representing ConstitutionDAO shares.Due to the failed bidding for the document, the PEOPLE token now represents a historic DAO movement.

Currently, there is no clear use case for the PEOPLE token, as the founding team has chosen to close the project and burn down the multi-signature that controls the fundraising.

$BONK:

BONK is MemeCoin launched on the Solana blockchain at the end of 2022, claiming to be “the first Dogecoin created for the Solana community.”It intends to revitalize the Solana community through decentralization and community engagement.

BONK is characterized by its extensive token distribution mechanism, with 50% of the tokens being distributed to the Solana community through airdrops.Its launch happens to be in a downturn in the Solana community, helping it regain market attention.

BONK is considered a symbol of the Solana community, attracting a large number of users to participate and gaining some practicality through its combination with Solana’s DApp and ecosystem.

$WIF

WIF (What If) is a relatively novel MemeCoin, created based on online discussions and fantasies caused by the philosophical question of “if”.WIF hopes to use this open discussion form to attract users to imagine various possibilities in the future.

WIF emphasizes community interaction and creativity, and users can express various “hypothetical” problems and future scenarios on the platform through tokens.It is mainly used for communication and community construction through social platforms.

$BOME

BOME is BOOK OF MEME (BOME), released by Pepe Meme artist Darkfarm, an experimental project that redefines web3 by integrating memes, decentralized storage solutions to reduce shitcoin transactions and gambling.

The issuance of BOME is mainly carried out through community pre-sales, and users obtain BOME airdrops by sending SOLs.Three days after its birth, the price of BOME coins rose 50 times, with a market value of over US$1.1 billion, and its highest was nearly US$1.5 billion, with a number of coin addresses exceeding 30,000+, and obtained the top exchanges such as Binance, becoming the fastest to launch Binance.MemeCoin.

Affected by the BOME boom, the number of memes issued by solana network has surged in a short period of time, and the number of active network addresses has reached its peak in the past month.

$POPCAT

POPCAT is a “Open mouth cat” MemeCoin inspired by meme, the meme itself originated from a video clip of a cat opening its mouth.POPCAT is one of the funny images that online users are keen to use.

POPCAT builds on its unique humorous image and internet pop culture, and the community drives its market growth.Although there are no complex technical functions, its memetic culture has been widely circulated and has become a cultural symbol.

POPCAT’s success relies entirely on the virality of its memes, attracting the attention of a large number of Internet users.

$DOGS

DOGS is Ton MemeCoin, born within the Telegram community, aims to leverage Telegram’s huge user base and local meme culture.

DOGS centers on a beloved dog mascot originally drawn by Telegram founder Pavel Dorov, aiming to introduce blockchain to millions through applications and tokenized stickers to foster an interesting and engaging ecosystem, focusing on community ownership and fair reward distribution.

The number of DOGS Mini APP users exceeds 50 million, and the vast majority of tokens (81.5%) are sent to community users through airdrops.

$NEIRO

The NEIRO token name originally originated from the prototype of Dogecoin. On May 24 this year, the prototype of DOGE Shiba Inu Kabosu passed away, which triggered condolences from the crypto community. In addition to mourning, Kabosu’s owner announced on the X platform that she adopted aA new Shiba Inu, whose English name is translated as ‘NEIRO’, then multiple MEME projects with the same name were generated, covering public chains such as Solana and Ethereum, and there are different MEME projects with upper and lower case on the same chain. Currently, onlyThe remaining two case-sensitive NEIRO and Neiro on the Ethereum chain.

The naming strategies of Neiro and NEIRO were originally intended to distinguish different projects, hoping to use case differences to attract users’ attention. However, Binance launched the NEIRO contract and Neiro spot operations at the same time, making the case dispute between MEME coins a new hype.

$GOAT

$GOAT is an AI concept Meme coin. Unlike traditional Meme coin, its driving force is an AI called @truth_terminal.

@truth_terminal is a fine-tuned OPUS model that is trained based on data from websites such as Reddit, 4chan, etc. to generate content and interact with users.In the process of talking to oneself, @truth_terminal created the “Gospel of Goatse” (Gospel of Goatse), whose core is a blend of traditional religions such as Buddhism and Gnosticism (Christianity, Judaism), and is presented through modern meme.

When a third party airdropped $GOAT to this AI through the Pump.fun platform, the AI ​​quickly included this token in its “personality” and actively promoted the market sentiment of $GOAT.AI tightly binds $GOAT to itself by generating a large number of tweets and interacting with the community, creating a unique narrative and symbolic image.

Based on AI, $GOAT has been confirmed as its official token and frequently issued articles, A16Z founder’s tweets mentioned, market KOLs helped and investor FOMO, etc., have jointly promoted the explosion of $GOAT. The market value of $GOAT has increased sharply in a short period of time., exceeding US$300 million in 5 days (up to $460 million), and the price of the currency increased by more than 10,000 times.

5.MemeCoin investment strategies and tools use

MemeCoin Profit Analysis

according to@arndxt_xoThe transaction data of the pump.fun platform released on social media shows that MemeCoin’s profit rate is extremely low:

• Only 70 traders (accounting for 0.0028%) made more than US$1 million;

• Only 924 traders (accounting for 0.037%) made more than US$100,000;

• 11,936 traders (accounting for 0.477%) made more than US$10,000;

• 76,567 traders (3.061%) made more than US$1,000;

• Only 20% of traders make profits, while the remaining 80% suffer losses.

It can also be seen from some other data analysis and feedback from market traders: MemeCoin is very speculative in the market, and price changes are mainly driven by community sentiment, social media hype and market FOMO (fear of missing opportunities), which leads to MemeCoinsIn speculation, only a few investors can sell at the top of the market and make profits, and most retail investors may suffer losses due to market volatility.

Therefore, the investment and trading strategies of MemeCoin are very different from the investment logic of other traditional encryption tokens, and certain investment strategies and tools are needed.

MemeCoin Investment Strategy

“Meme New Leader” Murad believes that Cult will become the next trend, focusing on finding undervalued Meme coins that meet most of his screening criteria by studying on-chain data, market value, and decentralization.The proposed Meme currency screening criteria include:

• Focus on medium-sized market capitalization currencies between $5 million and $200 million;

• Popular with Solana and Ethereum, excluding Base, Ton, Sui, because whales will anchor their wealth on the first two;

• Projects with a history of at least six months;

• Projects that have experienced at least two 70% plunges.

We can filter MemeCoin targets based on this, and in terms of specific investment strategies, we need to pay attention to the following three points:

1. Short-term operation strategy

• Track market sentiment in a timely manner: Since MemeCoin’s price depends largely on social media and community sentiment, investors need to always pay attention to the heat of discussion on social media (such as Twitter, Reddit, Telegram), especially the trends of celebrities or big Vs.Selling before the market heat reaches its peak is the key to short-term operations.

• Quickly make a profit:MemeCoin’s market cycle is usually short, and the price may also rebound quickly after a rapid rise. Therefore, short-term investors should set clear profit targets and quickly settle profits to avoid missing out on selling opportunities driven by market sentiment.For traders who want to hold MemeCoin for a long time, they need to choose popular MemeCoins with strong community support and user consensus and a long history on the Top Exchange Listing, such as Doge, SHIB, PePe.

2. Early stage investment strategy

• Participate in early project airdrop or fair distribution: Obtaining tokens at extremely low cost by participating in early airdrops or fair distribution activities of MemeCoin is a great way to reduce risk.Due to the low early prices, the risks are relatively controllable, and there is a high possibility of getting rich returns when the project’s popularity rises.

• Locking in low-market projects: Some investors focus on MemeCoin projects with low market value and have not yet received widespread attention, waiting for market attention to increase to make quick profits.The risk of this strategy lies in whether these small-cap projects can attract market attention, but if successful, the returns will be greater.

3. Risk management strategy

• Set the stop loss line: Since MemeCoins has extremely high volatility, investors should set a stop loss line in advance. Once the price falls below a certain critical point, they will automatically sell tokens to reduce losses.This is especially important for short-term investors, as prices tend to fluctuate violently in a short period of time.TG BOT is generally used to set up loneliness, order-subscription, stop-profit and stop-loss operations.

• Reasonably diversify investment: To avoid the risk of a single project, investors can spread their funds into multiple MemeCoin projects to reduce the losses caused by price fluctuations in individual projects.In addition, MemeCoin investments should only account for a small part of the portfolio, and other parts should be invested in crypto assets or traditional assets with lower risk.For a single MemeCoin, the amount of investment should be small.

MemeCoin Tools

In terms of tool assistance, investors can analyze MemeCoin through various tools and seize investment opportunities.Using tools to analyze MemeCoin is mainly based on the following aspects:

• Chip distribution: Analyze Memecoin’s chip distribution and unlocking through tools and on-chain browsers.Generally, the more scattered the chips, the more market-oriented they are. The more concentrated the chips, the more risk they are in Rug or cutting leeks.Tools includeBubblemaps.io, browser Etherscan, etc.

• Social and market sentiment analysis: It mainly analyzes Memecoin’s community audience, market activity and Kol situation through social platforms such as Twitter, Discord, Telegram, etc. The larger the number of social users, the more active the community interaction, and the more positive the user sentiment, representing their community.The stronger the consensus.Mainly throughlunarcrush.comTo analyze.

• Contract analysis: Through tools and on-chain browsers, whether there is a Pixiu disk (can only be bought but not sold), whether there is a transaction tax, whether there is a security risk or hidden danger (contract can be modified, there is a black/white list), whether the liquidity of the on-chain LP is locked/destroyed, and whether the liquidity is sufficient, etc., if the test score is less than 60, you need to be cautious.Commonly used tools includehttps://tokensniffer.com

• Market value and life cycle analysis: judge its potential and life cycle by analyzing its LP liquidity and circulating market value and FDV.For most MemeCoin, its life cycle can be simply analyzed by market value (early: ≤$1M, medium-term: $1M — $20M; maturity: ≥$100M), in the early and mid-term stages (FDV≤$10M)Memecoin with speculative potential and more than 20 million FDV is generally in the middle and late stages of development, with weak speculative value and strong expectations (Binance, OKX, Coinbase, Bithumb) to generate better liquidity and user buying.Only then can there be development potential.If FDV exceeds $100M, it means mature Memecoin, its speculative attributes are weak and its investment value is enhanced.

• Liquidity and MM analysis: Generally, the better the liquidity of LP, the more LP liquidity locked, which means the safer it is. At the same time, through the daily trading volume and K-line analysis of the observation period, whether there are MMs and strong dealers, and there are stronger MMs., Better trading volume means that it is more convenient to buy and exit, and there is potential room for potential.

The most commonly used MemeCoin market auxiliary tools include the following:

• GMGN:https://gmgn.ai, market trading software, its functions include new currency discovery, smart money tracking, currency price signal, K-line market, trading and trading, TG trading BOT, chip distribution, security detection and other functions.

• DEXSCREENER:https://dexscreener.comMarket trading software, its functions include new Token tracking, personal Portfolio, Watchlist list, signal alert reminder, K-line market, trading, chip distribution, security detection and other functions.

• Dextools:https://www.dextools.io, an old-fashioned market trading software, its functions include daily popular token list, token pool tracking, on-chain large-scale transaction tracking, token creation, K-line market, trading BOT, trading trading and other functions.

• Social Media Analysis: Lunarcrush (https://lunarcrush.com) is a social media analysis tool used to analyze the market influence of social media and crypto assets and understand market sentiment through visual data.TwitterScore (https://twitterscore.io) Used to analyze Token and KOL’s Twitter accounts, including information such as number of followers, creation date, score, top followers, and more.

• Trading BOT: Trading BOT is usually used to perform operations such as placing orders, automatic take-profit and stop loss, and follow-up smart wallets. You can use the Bots data on Dunehttps://dune.com/rolandgem/tg-bot-landscape, to select TG Bots on different chains.

• Security monitoring tool: Token security monitoringhttps://gopluslabs.io, contract address monitoringhoneypot.is, chip distribution toolbubblemaps.io, Rug detectionhttps://rugcheck.xyz

6. Summary

MemeCoins are a unique phenomenon in the cryptocurrency market, relying on the communication of Internet pop culture (Meme), social media, and community consensus, rather than technological innovation or practical applications.The core value of MemeCoins comes from the “attention economy”, which attracts user attention and speculative capital influx through meme culture and viral Internet transmission.

MemeCoins usually do not have clear application scenarios or product support, but are more of a cultural symbol, reflecting the collective sentiment and market speculative psychology in the Internet era.Their price volatility is extremely high, and investors tend to make profits through short-term market sentiment changes, but most users face losses after the market bubble bursts.

The emergence of MemeCoins reflects the new trend generated by the interweaving of Internet culture and financial markets. It is not only a product of market hype, but also a manifestation of community-driven power.In the future, MemeCoins may continue to gain market popularity through cultural influence and online dissemination, but its investment risks cannot be ignored.

In MemeCoins investment, successful strategies often include sensitive observation of social media trends, timely entry and exit, and strict risk management.Due to its high speculativeness and uncertainty, investing in MemeCoins should be considered a high-risk behavior, and investors need to be cautious and control the investment ratio to avoid becoming victims of PVP.