Meme Coin: The spiritual totem of retail investors The best means of project marketing

Author: Jessy of Golden Finance

"Value investment is a bust, stud meme lives in the palace".

In particular, the Meme project Bome on Solana created a 100-fold increase in one day and was listed on Binance in three days. This "common saying" was once again circulated in the crypto community. For investors, Meme Coin, which did not get on the train, soared, while value coins with heavy holdings did not rise but fell. Taking Pepe as an example, the highest increase since the beginning of the year is ten times. The old Meme, such as Doge, Shib, etc., also experienced relatively high growth in this cycle.

Not only has the increase been amazing, Meme Coin has also played more roles in this bull market. For example, Meme Coin on the Solana chain has become a fuel for the revival of the Solana chain.

According to Coingecko data, Memecoin’s market value on March 19 was nearly US$50 billion, which has exceeded the layer2, modular and other tracks favored by capital.

Not only in terms of economic value, Meme Coin is also an important part of the currency circle culture. It is a carnival for retail investors, which is different from the institutional-led Bitcoin ETFs, various public chains, and technological development. new narrative. It tells a pure story about dreams of wealth, about mocking the existing crypto industry, and more.

If you still regard Meme Coin as a worthless air currency, you may miss this bull market. It is smart to recognize the bubble and embrace it.

MemeCoin, the first virtual currency for young people 

For newcomers in the currency circle, a $70,000 Bitcoin is too expensive , but Meme Coin, which has multiple zeros after the decimal point, seems "cost-effective".

Moreover, it is different from those tokens that have a strong currency narrative and a high technical threshold. Meme Coin appears to be pure and has no threshold. It uses a highly labeled image to tell a simple and crude story of getting rich, which is enough to attract enough new people.

Meme culture comes from Web2, which is various memes, videos, texts, etc. that spread virally on the Internet. The spread of Meme culture is actually a kind of resistance to mainstream culture. The same is true in the currency circle, where the mainstream narrative revolves around Bitcoin and Ethereum. The development of the crypto industry is still full of old money and institutions. For new retail investors, what they need is tokens like Meme Coin that have a large rise and fall. They have created more myths of short-term wealth. In the currency circle, the most widely spread story must be the story of sudden wealth, and Meme Coin fits this narrative exactly.

During the bull market, money continued to pour into the crypto market, and Meme Coin became an amplifier of market sentiment. For newcomers and young people, buying Meme Coin may help them achieve “class leapfrog” faster. "dream.

The first Meme Coin to come into people’s sight was Doge, which was deployed in 2013. It was created to satirize the crazy growth of Bitcoin and the prevalence of cryptocurrency speculation at that time. It copied the Bitcoin code and changed the 21 million coins to 1.2 billion coins. Bitcoin has a mining difficulty setting, while Dogecoin makes mining very simple.

Perhaps the founder of Dogecoin did not expect that Doge’s vivid dog-headed image would spread virally in the crypto community, and Dogecoin became the originator of Meme Coin. Created tens of thousands of times the myth.

The later story is that Musk became the spokesperson of Doge. Whether on Twitter or on TV shows, he promoted Doge, and even threatened to make Doge the universal currency on Mars. Tesla La will also support Doge’s payments. The development process of Doge coin also demonstrates to us that virtual currency has value when it gathers consensus.

In a bear market, the circle is all about stock competition, but in a bull market, what is most needed is the influx of a large number of new people. There is no doubt that Meme is simple, pure, and attracts new people with straightforward stories of getting rich. . And precisely because it has a large user base, it is easy to generate consensus. Once you have a user base, it will be much easier to do things. Now Meme Coin not only creates stories of getting rich, but it itself is also constantly developing, evolving more ways to play, carrying the culture of the currency circle, contributing to the prosperity of the ecosystem on the chain, and so on.

The constantly iterative Memecoin has become a marketing tool

If you still have the impression that Meme Coin only tells stories about creating wealth and has no application. Then you may be behind the times.

Some Meme Coins directly engage in projects and industry construction. One of the more typical ones is Shib. After becoming the second largest Meme Coin, it has carried out all-round ecological construction, such as launching a DexShibaswap, establishing Ethereum Layer2  Shibarium, and also launching NFT and Metaverse, but The response to these ecological constructions has been average. However, it can be seen from the example of Shib that the scope of Meme Coin is expanding, and it is no longer just a game of drumming and passing flowers.

Moreover, Doge may become one of Tesla’s payment methods in the future. Relying on its massive users, Doge has slowly developed some practical applications. And those who complain that Meme Coin has no real applications may also need to change their views on Meme Coin.

And, from a side perspective, Meme is promoting the development of an important narrative in this cycle. That's Solana's resurgence. As a public chain highly favored by European and American capital, under the banner of Ethereum's killer, its increase has reached 8 times in this round, and its current market value has entered the top five. Meme Coin played an indelible role in the recovery of Solana, the rise in currency prices, and the increase in on-chain TVL. Not only that, Meme Coin also contributed to the spread of Solana culture.

Popular Meme Coins generally have a well-known image endorsement, such as Doge, Shib’s Shiba Inu, Pepe’s Sad Frog, etc. It is precisely with the help of such deeply rooted images that Meme Coin can spread among the public simply and crudely.

During the recovery of Solana, a Meme Coin representing the spirit of Solana was also born. Like other successful Meme Coins, it has a vivid image. In November 2023, during Solana Breakpoint, the annual Solana ecological summit, Solana co-founder Anatoly Yakovenko dressed up as a dragon-shaped doll on the day of the speech. Subsequently, this "silly dragon" image was considered to be a silly and down-to-earth expression of Solana Builders. The spirit of conducting technical research.

This really fits the narrative effect Solana wants to achieve when she is revived. Subsequently, the Meme Coin Silly was born, which was inspired by Anatoly Yakovenko’s outfit that day. Silly took on the role of spiritual totem during Solana's recovery. Of course, Silly’s currency price has also skyrocketed.

Silly’s success actually demonstrates the uniqueness and irreplaceability of Meme tokens in the currency circle. Meme Coin presents a kind of encryption culture, and culture is something that can gather people's hearts and allow users to find a sense of belonging.

From a more practical perspective, Meme Coin also plays a positive role in ecological construction. Take solana as an example. During the Meme Coin explosion last week, the Meme Coin on the Solana chain achieved very impressive results. For example, Bome was issued through a fund-raising method, and finally achieved the achievement of being listed on Binance within three days, once again creating many myths of getting rich.

Affected by the success of Bome, native dogs on the Solana chain have emerged one after another. This is precisely because native dogs promote the activity on the Solana chain, and also because exchanging native dogs requires the consumption of SOL. SOL's currency price has been rising steadily, reaching a peak of over 210 US dollars, and its market value ranked fourth.

The project parties expect that the rich applications on the chain can activate the ecology on the chain, but in fact, indeed, the wave of Meme Coin has made the chain really used by ordinary users. Moreover, some people point out that due to the influence of Meme, Solana's market value may reach one trillion, and with this Meme wave, Solana has become a veritable public chain for retail investors. It can be said that Solana has made good use of Meme Coin for marketing.

This can’t help but recall the ICO boom in 2018, the DeFi summer in 2021, and the dog fever on Ethereum. This has allowed Ethereum to be used on a large scale, and Ethereum has therefore firmly established itself. It has taken the throne as the number one application public chain. The arrival of the native dog season on Solana seems to be repeating the history of a few years ago.

The carnival of retail investors and the market alarm

Of course, the most attractive narrative of Meme Coin is still its strong ability to create wealth. For ordinary users, what they can do in the wave of Meme is to choose a Meme Coin with potential and sell it when there is a lot of buzz.

Although each successful Meme Coin has its own reasons for success, there are also some commonalities, such as having a strong narrative that keeps up with current hot topics, or having a well-known product promoter who has A strong community, or innovative gameplay.

For example, Musk’s order for Meme Coin is because he is the godfather of Meme, and any Meme Coin that can be related to him will have a good increase. For example, Pepe has a strong community. According to the search results of the addresses of large holders of Pepe, those who purchased a large number of pepe in the early days all came from the same NFT community, Milady. Pepe's community operation capabilities are amazing, and it spreads memes crazily on the Internet in conjunction with pulling disk. The strategy adopted by Shib was to transfer half of the tokens to Vitalik, thereby becoming famous.

First of all, you need to review the contract of Meme Coin to determine whether it is a Pixiu plate that can only enter but not exit. To seize a Meme Coin that will skyrocket, you must first be sensitive to hot spots. Ask yourself: What are the hottest technology, social, and industry events right now? Who is the most famous person in the currency circle? What are the popular projects nowadays?

Of course, there are also some technical methods, such as making good use of tools, such as Dexscreener, which allows you to discover Meme Coins that have just been released on the chain and track their dynamics. Websites such as DEXToolsApp can monitor high-rising tokens in real time and discover when their prices are suitable for buying. Eigenphi is a suitable tool. If you enter the trading pool address of the trading token, you can see the MEV trading volume it statistics for everyone, so as to estimate the trading volume of the real purchase intention and further compare the differences between various MEME tokens horizontally. Condition.

And we can also estimate the costs of the project side by ourselves. These costs include: the amount of funds added to the pool, and the cost of publicity and promotion. In this way, a reasonable starting price for the token can be calculated. Moreover, we can also use early currency holding addresses to speculate on the possible currency holdings of the project party, monitor the trends of possible banker addresses, and the buying and selling behavior of "giant whales" as a reference for buying and selling.

There are several indicators to determine whether Meme Coin has reached its peak: 24-hour trading volume exceeds market capitalization, lower and lower price highs, a significant slowdown in the number of holders, giant whales begin to sell chips, and funding fees The rate changes from negative to positive.

If you find this troublesome, just remember to leave the market when the crowd is buzzing. Don’t always think about selling at the highest point. If you look back after leaving the market when the crowd is buzzing, you will find that at least Sold at the high point of the stage. The operation strategy of decisive selling needs to be strictly implemented when buying and selling Meme Coin, because most Meme projects are bought and sold in one shot. There are always only a few that have lasting vitality.

Looking at the development of Meme Coin, you can see that there are many "plates" in it, but being able to pick the best ones will also bring you good profits. However, most investors lose money in Meme investing because they choose to enter a "one-shot" project when there is a lot of buzz. It can be said that investing in Meme Coin and other “value coins” is more like gambling.

Moreover, the outbreak of Meme Coin usually occurs when a market stage is coming to an end. History has also confirmed the correctness of this law time and time again. For example, after the frenzy on Solana this time, the market has experienced an overall correction - currently about 20%.

So relying on the popularity of the local dog market to judge where the market has gone is actually a tried and tested method. Especially when the sector has taken turns to rise, and then it is Meme Coin's turn to rise sharply, it may be the time when the market reaches its peak. At this time, you should not add positions at high levels. Those who do swings should decisively choose to reduce their positions at this time.

When this periodic market reaches the end, you might as well buy it again, especially if you can follow the big players to build positions. And you can choose those Meme Coins with longer adjustment cycles.

Now is the time to adjust the market. If you wait until Bitcoin stops falling, you should be able to get good profits by laying out some memes.