How to better understand Meme Coin?

Author: MIIX Capital Source: medium Translation: Shan Oppa, Golden Finance

Speculators often invest in MemeCoins without any research or fundamental support. For them, MemeCoins is more of an entertainment and speculation on the price of Token.

Meme coins are largely driven by community participation. Lacking basic economic or business applications, their value is often affected by social media and online sentiment.

2. What potential is required for a successful Meme coin?

The roots of the meme coin phenomenon are closely tied to internet culture, using popular memes for branding and community building.

In addition, the support of influencers with large communities also increases the potential success of memory coins. It is understood that Elon Musk supported DOGE coins on Twitter and traditional media as early as 2022, and the value of the tokens increased significantly.

3. Will the volatility of Meme coins have a negative impact on the overall stability of the investment portfolio?

In general, yes, because this digital asset is highly volatile and has no intrinsic value. Most memecoin investors come from retail investors who do not set profit targets. This means that they may end up with negative returns on their investments (especially if their portfolio has considerable exposure to memecoins), as memecoins are highly volatile.

4. Why do most Meme coins choose Solana chain or Base chain?

The appeal of the Solana blockchain for meme coins is its scalability and efficiency. Compared to Ethereum, it is capable of processing a large number of transactions per second at a fraction of the cost.

5. Is the fundraising frenzy of Meme on Solana equivalent to the ICO era of Ethereum?

To some extent, yes, but this is an evolution, the Solana chain is more powerful than Ethereum due to lower transaction fees and faster transaction speeds The square is more attractive.

Solana uses memcoin to drive hype and activity in its ecosystem, with clever marketing, especially the Solana phone with the BONK token.

6. What is the early detection method for projects like BOME?

• Follow KOL lists on Twitter, memecoin hunters on Solana, and more.

• Participate in the online cryptocurrency community. Monitor social media trends.

• Explore high potential pre-sales.

• Use cryptocurrency market aggregators - coinmarketcap, coinsecko, coincodex.

• Etherscan, Dune analysis - analyze memory currency indicators.

• Look at low market cap meme coins.

7. Will the Meme coin sector remain hot throughout the bull market? What's the point?

The value of Meme coins is heavily influenced by social media buzz and influencer endorsements, rather than underlying financial metrics. Community events (online platforms such as Twitter and Reddit) remain a hotbed of memecoin promotion and discussion.

The Meme market is mainly driven by retail investors, institutional investors (except for degen VC, high-risk speculative trading) usually avoid using Meme coins because of their unavailability Predictive properties.

While many memecoins start out with little intrinsic value, the development of their utility can significantly impact their longevity. Projects that extend their capabilities beyond simple transactions to offer services such as games or NFTs may gain greater sustainability.