Preface:

Murad Mahmudov’s recent keynote speech at Token2049, entitled “Memecoin Supercycles,” received more than a million views and interactions, generating a great deal of buzz about MemeCoin.

This fairer public distribution logic and unique community cultural value of MemeCoin have made it an important narrative and hotspot in the current market. Its large trading volume and huge price volatility attract traders' attention.

With the MemeCoin report, we hope to help readers understand the history and genesis of MemeCoin, the factors that have exploded the MemeCoin circuit and the conditions necessary for success, and how to invest in MemeCoin. The content is for industry learning and communication and does not constitute any investment reference.

1. Traceability of MemeCoin

What is MemeCoin?

MemeCoin is a cryptocurrency based on Internet pop culture, modes (memes), or funny content. These coins usually have no clear technological innovation or practical application scenarios and mainly rely on social media and community drives to gain popularity through viral spread.

MemeCoins generally share certain common characteristics:

• The project narrative is easy to understand and communicate and does not contain abstract concepts;
• There is no clear technological innovation, complex product, or actual revenue to support it;
• Contains a certain culture of memes that elicits a certain level of interaction or emotional resonance;
• It relies heavily on social media and user communities for promotion and marketing;
• Token is distributed fairly, and the Token itself has no explicit utility or use.

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

MemeCoin VS traditional crypto projects:

MemeCoin and traditional crypto projects (e.g. public chains, DeFi protocol, Dapps, etc.) are both part of the cryptocurrency space. They differ significantly in their core values, drivers, and the way the market understands and reacts to them.

In summary, traditional crypto projects focus on technological innovation, application scenarios, and product development, with complex market narratives and valuation models that support Token value based on long-term market expectations and actual product revenue capabilities.

MemeCoin, on the other hand, relies entirely on social media buzz and community-driven initiatives, and the token itself is a product of the attention economy and cultural symbolism. It is not backed by sophisticated technology or products, and price fluctuations are driven by speculative demand and market sentiment, making it more like a speculative lottery or social game.

Essentially MemeCoin is an attention economy, a fusion of cultural and speculative attributes that reflects a new form of combining internet culture with capital markets, demonstrating the influence of the attention economy in the cryptocurrency space.

Principles behind the popularity of MemeCoin

The ability of MemeCoin to gain popularity can be explained primarily by three principles in economics: irrational exuberance, network effects, and the need for fair distribution. Together, these principles explain the rapid spread of MemeCoin in the marketplace and the high level of interest it has gained in the absence of technical support or intrinsic value.

Irrational Exuberance:

The concept of “irrational exuberance” was introduced by economist Robert Shiller, who pointed out that asset price rises were not driven by the intrinsic value of the asset or rational analysis, but more by investor sentiment, market speculation, and speculative behavior.

MemeCoins price increases are often closely related to hype on social media platforms (e.g. Twitter, Reddit, Telegram, etc.) rather than any actual technological innovation or product application.

Public comments and support for MemeCoins such as Dogecoin by celebrities (e.g. Elon Musk) can trigger great market volatility in a short period of time, attracting more investors to pour in and thus driving the price up further.

The price of MemeCoin rose dramatically in the short term, and the wealth of early investors attracted more people to try to participate because of FOMO (fear of missing out on opportunities). Such short-term gains and the “get-rich-quick myth” further fuelled speculative sentiment in the market, causing more investors to ignore the real value of MemeCoin and driving irrational exuberance.

Network effects:

The network effect is the phenomenon whereby the value of a particular product or service grows as the number of users increases. A key feature of the network effect is that when the number of users reaches a certain critical mass, the reach and value of the product explodes.

The value of MemeCoin does not come from its technology or application, but is gradually amplified through user participation, discussion, promotion, and purchasing behaviors, creating a strong network effect. The MemeCoin project has rapidly accumulated a large number of followers and investors through user interactions and community participation, creating a collective community consensus, and when this community consensus reaches a certain When this community consensus reaches a certain “tipping point”, its marketing and price increase will be accelerated.

the theory of “fair play”

“The Fair Play Theory emphasizes that participants will be more willing to participate in a game or market that they perceive to be fair.

For MemeCoin, the public distribution mechanism of Token (Fair Launch), the decentralization of the distribution process and the low threshold of participation, as well as the transparency of the Token chips and the on-chain liquidity, can enable ordinary investors to feel a fair chance, and all players can participate in investment and

trading on the same starting line, so there is a greater willingness to participate, which drives the MemeCoin’s spread and market performance. This mechanism can attract more people to join the MemeCoin speculation “game”, forming a strong community base and further promoting its popularity.

MemeCoin History

From the earliest MemeCoin Doge, to sporadic MemeCoin hype, to MemeCoin becoming a popular track and narrative logic, it’s gone through several stages:

• Early MemeCoin phase: Early Memecoin was spawned by Meme culture and featured individual Tokens, without a more unified Meme market. The earliest Memecoin was Doge, thanks to the strong Doge online/offline community, and Elon Musk’s shout-outs (frequent Dogecoin-related tweets), which contributed to the surge in the coin price and the wealth effect.
• The early stage of MemeCoin hype: This stage is characterized by imitating the style of Dogecoin and focusing on funny and interesting internet culture. Typical representatives are Shiba Inu, Floki, and Pepe, which have attracted the attention of many market users with their unique cultural consensus, large user group size, and huge wealth of mythological stories, promoting the spread of Meme culture and the rise of hype.
• Inscription MemeCoin Boom: Opened in March 2023 — May 2024, with the creation of the Ordinals protocol by Casey Rodarmor, a Bitcoin Core developer, spawning a boom in the development of the Bitcoin Network NFT and inscriptions, with the emergence of BRC20, ORC20, Rune, ARC20, Taproot Assets, and other Bitcoin Token Protocol standards, resulting in tens of millions of inscriptions. These inscriptions can be counted as MemeCoin on the BTC network, the most famous of which are ORDI, SATs, and Rats.
• Solana MemeCoin Speculative Boom: In 2023–2024, the Meme market on Solana explodes and begins to lead the market, fuelling a Meme speculative boom through fair distribution, airdrops, Meme pre-sales, and community events. Typical projects include Bonk, MYRO, SILLY, WIF, BOME, SLERF, and others. Many speculators tried to get rich quickly by buying MemeCoin, leading to a flood of new MemeCoin projects on the market. These projects usually gain widespread attention in a short period of time through social media, celebrity effects, or community hype, but many of them are also accompanied by huge price volatility and high risk.
• MemeCoin Infrastructure Fever: The development and refinement of meme issuance platforms, trading bots, and ticker tools, led by Pump. Fun, further fuelled the meme fever by upgrading the infrastructure. These platforms and tools have greatly facilitated the creation, purchase, and trading of MemeCoin, leading to the meme explosion.
• MemeCoin Hype Divergence: On 15 September 2024, CoinSafe launched three Meme coins (Neiro, Turbo, and BabyDoge) in one day, which subsequently triggered a case dispute between the Neiro and NEIRO tokens, and a new round of speculation in the Meme coin market was launched. This round of Meme Coin speculation is mainly centered around the case-sensitive naming letters, donations to God V and God V’s selling of Meme Coins, and the revival of Cult Meme Coins, etc. Typical examples are: Neiro/NEIRO and BabyDoge, and Neiro/NEIRO. Typical examples are Neiro/NEIRO, MOODENG, TERMINUS, PAC, and so on.

2.MemeCoin track analysis

Reasons why the MemeCoin track is exploding

Token overproduction and crisis of confidence:

The total number of tokens included on the CoinGecko ticker site is over 140,000, and the number of tokens created on major public chains (including L2) is increasing by 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 to before 2017, the number of tokens currently on the market has increased geometrically, and the ballooning number of tokens has greatly distracted the market, leading to serious dilution of the value of many projects.

At the same time, more crypto projects and Token launches are not generating stable cash flow to bring long-term business growth and profitability expectations, but instead only speculative expectations remain. Many of the new tracks and hotspots, narrative logic, etc. of the past have been falsified after two or three rounds of bull and bear cycles, leading to a crisis of confidence among market traders in the value of tokens.

MemeCoin has gained popularity among market traders, especially the retail investor community, because of its fair Token chip issuance mechanism, unique product-independent culture and community cohesion, and potential wealth creation effect (100X, 1000X, etc.).

No hot spots in the market

The crypto market as a whole has been in a bear market since the end of the DeFi Summer bull cycle in 2021–2022.

Although crypto practitioners have been chasing new market hotspots, from 2023 to 2024, numerous hotspots have emerged in the market, including the BTC ETF and BTC halving, ETH upgrades and ETFs, BTC inscriptions, BTC L2, LRT, AI, and TG MiniAPP. However, with the exception of the BTC ETF, most of the other hotspots and narratives are weak in terms of sustainability, less pervasive, and lacking in money-making effects, far from being comparable to previous market narratives such as DeFi, which were highly sustainable and well-innovated.

Most of the market liquidity is focused on BTC, ETH, and a few other mainstream coins, the vast majority of the cottage coins’ liquidity is missing, and the market is dismal.

The overall market’s hotspot-less environment has spawned demand for MemeCoin, which has a clear wealth creation effect, a strong community marketing atmosphere, and a strong appeal to the average retail investor.

Institutional currencies (high market cap, low liquidity) have grossly inflated valuations

Previous crypto market cycles have seen investment organizations earn high returns by investing in crypto projects, and as a result, more and more crypto investment funds have emerged, and the expansion of the overall body of funds’ capital has led to a significant increase in the valuation of crypto startups from 2023 onwards compared to the pre-2022 period.

From the projects that I have learned about, the vast majority of crypto projects from 2023 to the present, the starting market value is $10–20M. After one or two rounds of financing, the market value is as high as $50M, the Public round and on the exchange after the FDV is generally more than $100M, and the FDV of some star-level projects is as high as $1B and above.

Popular projects that go live on TOP-level exchanges Coin and OKX

from 2023 to 2024, including ZK, STRK, SAGA, ALT, ENA, ETHFI, W, etc., are institutional coins, which are typified by high FDV and low liquidity on Tokenomics, as well as higher Public prices (compared to the cost price of several funding rounds).

Originally, the market could take on the limited volume of cottage coin funds (billions to tens of billions of U.S. dollars), these over-valued new projects listed and traded, crowding out the liquidity funds in the market, and it is difficult to obtain sustained buying power, resulting in the new coins on the exchange appearing after the gloomy downward trend. The retailer’s willingness to go in to take over the market has been greatly reduced. With the continuous unlocking and release of subsequent tokens, the market continues to face enormous selling pressure.

The proliferation of institutional coins has led to an outcry against them in the marketplace, even evolving into a performance art that has spawned demand for the Fair Launch project, and MemeCoin’s full circulation and unlocking at the TGE fits well into the investor psyche, with many retail investors seeing MemeCoin as a means to counter the institutional Advantage.

MemeCoin infrastructure

As can be seen from the history of Meme, the abundance and refinement of the Meme infrastructure has greatly facilitated the trading and circulation of Meme track items.

The release of Uniswap’s innovative AMM DEX product opens the DeFi summer and greatly facilitates the trading of Meme coins, requiring only the creation of a small amount of liquidity to open Meme trading directly on the chain.

The trading Bot track boom in 2023 has further enhanced the trading experience of Meme Coin. The mainstream Bot track projects in the market include Maestro Bot, Unibot, BananaGun, etc., whose Bot trading volume has expanded dramatically since 2023. These trading Bot not can only set limit orders, follow orders trading, new coin blocking, etc., but also introduced special features such as Anti-Clip (Anti- MEV), Anti-Rug (Anti-Rug), and Sell Rush (FrontRun), which enhance the user trading experience.

2024 Meme issuance platforms, led by Pump.Fun has further fuelled the meme fever by upgrading its infrastructure.Pump.Fun has greatly simplified the process of creating and trading MemeCoins on the blockchain through simple token creation (the user only needs to enter the token name, token code, and image, and pay a small deployment fee), a dynamic pricing curve, and a liquidity mechanism. Memecoin process, facilitating the democratization of MemeCoin creation, community, asset liquidity and ease of trading. Numerous Meme trading platforms have subsequently emerged, such as SunPump, and MakeNow.Meme, Moonshot, Ape.Store, Four.meme, and so on.

In addition to this, there are 2 types of infrastructure-type facilities that are also driving the Meme boom. One is decentralised wallets, and the other is various types of ticker software tools GMGN, DEXTools, DEX Screener to look for on-chain smart money behaviors, Token chip distributions, contract security, etc., and thus look for opportunities to profit. These two types of products facilitate users to find smart money on the chain and discover potential Meme coins, which in turn increases the probability of profitable trading.

Top Exchange Favourites

Top-level exchanges, such as Binance and OKX, have launched MemeCoin one after another, which also creates a good boost for the development of the MemeCoin track. by launching Top-level exchanges, MemeCoin is able to greatly enhance its trading liquidity and market influence, and at the same time, the huge volume of users of top-level exchanges has become a potential audience and buying power for MemeCoin. and buying power.

Generally speaking, MemeCoin traded on DEX has relatively limited liquidity, with tens of millions of market capitalisation being its upper limit, and by going live on a top-level exchange, it is able to raise its market cap ceiling from tens of millions of market capitalisation to hundreds of millions.

Factors at the heart of MemeCoin’s success

Overall, for MemeCoin to succeed, it first needs a compelling story (Memes cultural narrative), the design of the token and the community culture must be unique and appealing in order to resonate with and excite investors, and to stand out from the crowd; it also needs to have a strong and spontaneous community, an active and dynamic community is the key to driving the success of the MEME coins, the power of the community can influence market sentiment and investment decisions; in addition, it needs to be backed by strong supporters and traders who can drive the price at critical moments. An active community is key to the success of MEME Coin, as the power of the community can influence market sentiment and investment decisions; in addition, it needs to be backed by strong supporters and traders who are able to drive the price of the cryptocurrency at critical moments.

Memes Culture

MemeCoin is culture-driven, through the cultural atmosphere to cause consensus and heat, the early Meme Coin and many NFT are based on a specific cultural consensus to develop and grow, Meme Coin with a cultural consensus of the viability of the strong dissemination, pervasiveness and acceptance, can allow users to get a sense of participation and belonging, as well as cultural value consensus identity.

Meme KOL Murad calls this culture “Cult Meme”, which refers to a highly dedicated, fanatical following culture in which fans show extreme passion and loyalty to a specific thing, such as a person, brand, idea or work, and which is often centered around a small but influential group of people who separate themselves from the mainstream through shared beliefs, behaviours or interests. This cultural phenomenon usually revolves around a small but influential group of people who distinguish themselves from mainstream culture through shared beliefs, behaviours or interests.

Murad believes that the best meme coins are more functional than almost all torrents, that they provide fun, reduce loneliness, and identity — fulfilling what DAOs were originally supposed to achieve, bringing empathy, emotional connection, a sense of mission and meaning, and entertainment as well as a sense of well-being, and even promoting philanthropy, story creation, and creation of narrative construction.

For Meme Coin, strong meme cultural narratives have been an important factor in its success, and these cultural narratives have given Meme Coin a strong vitality, driving cohesion among its community of users, wide distribution on social media channels and expansion of its influence. Typical examples include Doge, SHIB, Pepe, Bonk and others.

Hot spot on the market

Market hotspots here refer to market hotspots with communication or novelty characteristics. In today’s highly developed network society, these hotspots with communication and novelty characteristics can attract great market attention in a very short period of time, that is, attention economy.

Relying on this, Meme coins launched on the back of market hotspots can greatly elicit FOMO sentiment in the market. This category is mainly driven by celebrities (Musk, Trump, V-God), and market hotspots (Moodeng).

Meme KOL:

In the modern business world, Meme strength has become a common consensus phenomenon. In the financial field, top investors have a wider audience, and such financial KOLs have a strong sticky audience and influence, which can greatly promote the spread of Meme through KOL marketing.

The marketing and pushing of these KOLs is behind the growth and development of many MemeCoins. The value of many MemeCoins starts out at almost nothing, but through KOLs and community hype, market speculation, and viral spreading, the price can quickly skyrocket. This attracts a large number of speculators who want to make huge profits from short-term investments, creating a “wealth effect”.

Famous Meme KOLs include Ansem, Murad and others.

MM facilitates

The development and growth of any MemeCoin cannot be achieved without the impetus of MM market makers. Due to the unique trading mechanism of AMM, a small amount of money can cause a great increase through MM market making, and the greater the volatility means the higher the potential profit expectation, which is able to enhance the money-making effect of MemeCoin through MM market making.

For MemeCoin, only with the potential expectation of a money-making effect will people come to take over and promote a full exchange of MemeCoin chips, and MemeCoin without an exchange of hands has no future.

For many MemeCoin, its historical cycle has seen multiple coin price drops of 80%, followed by renewed rises in market capitalisation to break through to new highs, this is a case of MemeCoin having a change of bank, where the early project parties have finished dumping and exited, and there is a new MM fund taking over to continue the speculation and promote the continuation of the MemeCoin story.

CTO

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

CTO behaviours include setting up new social media accounts (Twitter), increasing the visibility of the project on social networks, partnering with influencers and launching programs, and investing in advertisements on ticker software (e.g. DEX Screener, DEXTools).

The main purpose of the CTO is to generate demand for Meme Coin transactions by operating and maintaining the community, attracting the attention of users, and expanding the fan base and influence of the Meme Coin community.

A MemeCoin project being CTO means for retail investors that the minefield of developer ratfishing is ruled out and the community leads the development of the project, e.g. the disappearance of Satoshi Nakamoto and the rise of Bitcoin can perhaps be seen as the most classic CTO model.

Some of the more successful Meme CTO cases include $POPCAT, $WIF, $SPX.

3.MemeCoin Market Size

According to CoinMarketCap, the entire MemeCoin market is $53.5 billion, or about 2.4% of the entire cryptocurrency market’s $2.4 trillion market cap.

The top 10 MemeCoins by market cap include Doge, SHIB, PEPE, WIF, BONK, FLOKI, POPCAT, BRETT, NEIRO, MOG. these MemeCoins are

mainly distributed on Ethereum and Solana chains.

As the MemeCoin market grows, they are no longer a tool for short-term speculation, but have become an important narrative track and market trend in the crypto market, an important part of the crypto market and crypto community, and a key driver for the growth of the crypto market.

The change in MemeCoin’s status (from short-term hype to becoming an important narrative track) signals that MemeCoin’s market size will grow with it. We can make optimistic predictions about MemeCoin’s market capitalisation as it will gradually increase, judging by the current market cap size and volume of mature tracks in the crypto market:

• Total market cap of the MemeCoin track: further development from the current $50+ billion to $1 trillion market cap volume, gradually increasing from 2.4 percent to 8–10 percent.
• Head MemeCoin market cap: there will be 1–2 MemeCoins with a market cap of over $100bn and 5–10 MemeCoins with a market cap of over $10bn (currently 2 DOGE, SHIB);
• Top100 market cap share: there will be 10–30 MemeCoin market caps ranked within the Top100 crypto Token market cap list (currently there are 9).
• MemeCoin Purchase: There will be more investors, venture capital firms, institutional traders, and traditional financial institutions investing and trading in MemeCoin.
• MemeCoin Community: The MemeCoin community will further expand in volume, and its unique cultural consensus and market consensus will further gain the trust of investors and remain enduring.

4.MemeCoin Ecological Mapping

There are currently over a few million MemeCoins on the market, the vast majority of which will die out before their community consensus reaches some sort of “tipping point”, with only a very small number of MemeCoins succeeding in creating a positive cycle of cultural consensus and price and market capitalisation.

There are a few following cases of typical MemeCoin on the market today:

$DOGE:

Dogecoin was one of the first MemeCoins, created by Billy Markus and Jackson Palmer in 2013, inspired by the internet’s popular Shiba Inu modelling. Dogecoin was originally created as a satire of Bitcoin and other cryptocurrencies, but quickly gained popularity, especially among communities such as Reddit. Dogecoin was originally created as a satire of Bitcoin and other cryptocurrencies, but quickly gained popularity, especially in communities such as Reddit.

Dogecoin has no clear practical application scenario, serving more as a community bounty tool or recreational cryptocurrency. Its price volatility is great, especially in Elon Musk’s tweets to promote, had in 2021 a huge surge, the price from $ 0.007 quickly rose to $ 0.73, gained 100 times the increase, the highest market value of more than 80 billion U.S. dollars, creating the first wave of Meme wealth creation myth.

$SHIB:

Shiba Inu is a MemeCoin to be launched in 2020, positioned by its creators as the “Dogecoin Killer”. It is an ERC-20 token based on the Ether blockchain.

The SHIB community has fuelled its rapid popularity through social media and crypto platforms, and has gradually added utility by combining it with DeFi and NFT. Compared to the purely narrative style of other MemeCoins, SHIB is unique in that it has built a more complete ecosystem, including a decentralised exchange (ShibaSwap), an EVM-based L2 chain (Shibarium), and a gaming ecosystem, Shiba Games (which has launched a collectible card game, Shiba Eternity), Shiba Metaverse (including NFT and land).

$PEPE:

PepeCoin is a cryptocurrency based on Internet pop culture, inspired by the world-famous modelling character “Pepe the Frog”, an iconic image of Internet humour and culture that is used to express a wide range of emotions and ideas.

With an emphasis on entertainment and community-driven, PepeCoin is rapidly gaining popularity thanks to Pepe’s global cultural influence.PepeCoin’s popularity relies on the community’s sense of identity and humour with the image of Pepe, and has attracted a large number of speculators.

$PEOPLE

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

PEOPLE is a token representing ConstitutionDAO shares. As a result of the failed bid for the document, the PEOPLE token now represents a historic DAO movement.

Currently, there is no clear use case for PEOPLE tokens, as the founding team has chosen to shut down the project and burn the multi- signatures that controlled the funds raised.

$BONK:

BONK is a MemeCoin that will be launched on the Solana blockchain in late 2022 and is billed as “the first dogcoin created for the Solana community”. It is intended to revitalise the Solana community through decentralisation and community participation.

BONK is characterised by its extensive token distribution mechanism, with 50% of the tokens distributed to the Solana community via airdrop. Its launch was timed to coincide with a downturn in the Solana community, which helped it regain attention in the market.

BONK is considered a symbol of the Solana community, attracting a large number of users and gaining some utility through integration with Solana’s DApp and ecosystem.

$WIF

WIF (What If) is a relatively new type of MemeCoin, based on online discussions and fantasies triggered by the philosophical question “What if?” WIF wants to use this form of open discussion to engage users in imagining the possibilities of the future.

WIF emphasises community interaction and creativity, allowing users to express various “what-if” questions and future scenarios on the platform through tokens. It is mainly spread through social platforms for dissemination and community building.

$BOME

BOME is BOOK OF MEME (BOME) distributed by Pepe Meme artist Darkfarm, an experimental project to redefine the web3 by incorporating memes, decentralised storage solutions, and reducing shitcoin trading and gambling.

BOME’s issuance is mainly carried out through community pre-sale, and users get BOME airdrops by sending SOLs. Within three days of its birth, BOME’s coin price had risen 50 times, its market capitalisation exceeded $1.1 billion, with a peak of nearly $1.5 billion, and the number of coin-holding addresses exceeded 30,000+. BOME has gained Listings on Binance and other top exchanges, and has become the fastest MemeCoin to go live on Binance.

As a result of the BOME boom, the solana network has seen a surge in meme issuance over a short period of time, with the number of active addresses on the network reaching a peak in the last month.

$POPCAT

POPCAT is a MemeCoin inspired by the Internet modeling of a “cat with a gaping mouth”, itself based on a video clip of a cat with a gaping mouth, one of the most popular and funny images used by Internet users.

POPCAT is based on its unique humorous image and Internet pop culture, and the community drives its market growth. Although it does not have complex technical features, its modeling culture is widely circulated and has become a cultural symbol.

The success of POPCAT relies entirely on the viral spread of its modeling, which has attracted the attention of a large number of Internet users.

$DOGS

DOGS is a Ton MemeCoin that was born within the Telegram community to capitalize on Telegram’s large user base and local meme culture.

Centered on a much-loved dog mascot originally drawn by Telegram founder Pavel Dorov, DOGS aims to introduce blockchain to millions of people through apps and tokenized stickers, fostering a fun and engaging ecosystem with a focus on community ownership and fair reward distribution.

The DOGS Mini APP has over 50 million users and the vast majority of tokens (81.5%) are sent to community users via airdrop.

$NEIRO

NEIRO token name originally originated from the prototype of Dogcoin, on 24th May this year, Kabosu, the prototype Shiba Inu of DOGE, passed away, which triggered the crypto community’s mourning, while mourning, Kabosu’s owner announced on the X platform that she adopted a new Shiba Inu, whose English name was translated as ‘NEIRO’, and then it was Multiple MEME projects with the same name have been created, covering public chains such as Solana and Ether, and there are also case-sensitive MEME projects on the same chain, with only the two case-sensitive NEIRO and Neiro remaining on the Ether chain.

The naming strategy for Neiro and NEIRO was originally intended to differentiate between the two projects, with the hope of using the case difference to draw attention from users, but CoinSecurity’s simultaneous launch of the NEIRO contract and the Neiro spot has made the case dispute over MEME coins a new hype.

$GOAT

$GOAT is an AI concept Meme coin that, unlike traditional Meme

coins, is driven by an AI called @truth_terminal.

@truth_terminal is a fine-tuned OPUS macromodel trained to generate content and interact with users based on data from sites such as Reddit and 4chan. In dialogue with itself, @truth_terminal has created the “Gospel of Goatse”, which at its core blends traditional religions such as Buddhism and Gnosticism (Christianity, Judaism) and presents them through a modern meme.

When a third party airdrops $GOAT to the AI via the Pump.fun platform, the AI quickly incorporates the token into its own “persona”, actively driving sentiment towards $GOAT. and symbolic image.

Based on the combination of AI confirming $GOAT as its official token and posting frequently, A16Z founder’s tweets mentioning it, market KOL boost and investor FOMO, $GOAT’s market cap has risen dramatically in a short period of time, exceeding $300 million in 5 days (up to $460 million), and the coin price has risen over 10,000 times.

5.MemeCoin investment strategy and use of tools

MemeCoin Profit Analysis

MemeCoin’s profitability is extremely low, according to Pump.fun platform trading data statistically posted on social media by @arndxt_xo:

• Only 70 traders (0.0028 percent) made more than $1 million;
• Only 924 traders (0.037 percent) made more than $100,000 in profit;
• 11,936 traders (0.477 percent) made more than $10,000 in profit;
• 76,567 traders (3.061%) made over $1,000 in profit;
• Only 20 percent of traders made a profit, while the remaining 80 percent suffered losses.

Some other data analyses and feedback from market traders also show that the MemeCoin market is very speculative, with price movements driven by community sentiment, social media hype, and the market’s FOMO (fear of missing out on an opportunity) mentality, resulting in MemeCoins speculation where only a few investors are able to sell at the top of the market and make a profit, and the majority of retail traders are likely to lose money due to the volatility of the market. losses due to market volatility.

Therefore, the investment and trading strategy for MemeCoin is quite different from the investment logic of other traditional crypto Token, and requires certain investment strategies and tools to assist.

MemeCoin Investment Strategy

“New meme leader” Murad believes that Cult will be the next trend and focuses on finding undervalued meme coins that meet most of his screening criteria by studying on-chain data, market value, degree of decentralization and other metrics. His proposed screening criteria for Meme coins include:

• Focus on mid-cap coins between $5 million and $200 million;
• Favour Solana and Ether and exclude Base, Ton, Sui as the whales will moor their wealth to the first two;
• Projects that are at least six months old;
• Projects that have experienced at least two 70% plunges.

We can screen MemeCoin targets accordingly, and in terms of specific investment strategies, we need to pay attention to the following three points:

1. Short-term operational strategies

• Tracking market sentiment in a timely manner: Since MemeCoin’s price is heavily dependent on social media and community sentiment, investors need to keep an eye on the buzz on social media (e.g., Twitter, Reddit, Telegram), especially the movements of celebrities or big names. Selling before the market heat peaks is the key to short-term operations.
• Take Profits Quickly: MemeCoin’s market cycle is usually short, and the price is likely to retrace quickly after a rapid rise, so short-term investors should set clear profit targets and take profits quickly to avoid being driven by market sentiment and missing selling opportunities. For traders who want to hold MemeCoin for a long period of time, they need to choose popular MemeCoins with strong community support and user consensus, and a long history of listing on Top exchanges, such as Doge, SHIB, PePe, and so on.

2. Early investment strategy

• Participate in Early Project Airdrops or Fair Distributions: Getting tokens at a very low cost by participating in MemeCoin’s Early Airdrops or Fair Distributions is a great way to reduce risk. Due to the low price in the early stages, the risk is relatively manageable and there is a better chance of getting a good return when the project heats up.
• Targeting low-cap projects: Some investors focus on low-cap MemeCoin projects that have not yet received much attention, waiting for the market to pick up interest and make a quick profit. The risk of this strategy is whether these small-cap projects can attract market attention, but the reward is greater if they are successful.

3. Risk management strategy

• Setting Stop Loss Lines: Due to the high volatility of MemeCoins, investors should set stop loss lines in advance to automatically sell tokens and minimize losses if the price falls below a certain threshold. This is especially important for short-term investors, as the price tends to fluctuate drastically in a short period of time. TG BOT is generally used to set up operations such as lone, follow orders, take-profit, and stop-loss.
• Reasonable Diversification: In order to avoid single-project risk, investors may diversify their funds across multiple MemeCoin projects to reduce losses from price fluctuations of individual projects. In addition, MemeCoin investments should comprise only a small portion of the portfolio, with the rest invested in lower-risk crypto or traditional assets. For individual MemeCoin, the amount invested should be on the small side.

MemeCoin Tools

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

• Chip Distribution: Analyse Memecoin’s chip distribution and unlocking through tools and on-chain browsers. Generally, the more dispersed the chips are, the more marketable they are, the more concentrated the chips are, the more risky they are to rug or cut leeks. Tools include Bubblemaps.io, browser Etherscan, and so on.
• Social and Market Sentiment Analysis: The main purpose is to analyze Memecoin’s community audience, market activity, and Kol’s situation through social platforms such as Twitter, Discord, Telegram, etc. The larger the number of social users, the more active the community interactions, and the more positive the user sentiments are, the stronger the consensus of its community is represented. This is mainly done through lunarcrush.com for analysis.
• Contract analysis: Through tools and on-chain browsers to analyze Memecoin’s contract address, whether there is a Pixi disk (you can only buy but not sell), whether there is a transaction tax, whether there is a security risk or hidden dangers (the contract can be modified, there is a black/whitelisting mechanism, etc.), whether the on-chain LP liquidity is locked/destroyed and whether the liquidity is sufficient, etc. If the score is lower than 60 after the detection, you need to be cautious. Commonly used tools include https://tokensniffer.com/
• Market cap and life cycle analysis: determine its potential and life cycle by analyzing its LP liquidity and outstanding market cap and FDV. For most MemeCoin, its life cycle can be simply analyzed by its market capitalisation (early stage: ≤$1M, mid-stage: $1M — $20M; mature stage: ≥$100M), there is speculative potential in the early and mid-stage (FDV ≤$10M), and Memecoin with more than $20M FDV are generally in the middle to late stage of development, with weak speculative value and need to have a stronger Memecoin with more than $20 million FDV is generally in the middle to late stage of development, with weak speculative value, and needs to have stronger firm expectations (Binance, OKX, Coinbase, Bithumb) to generate better liquidity and user buying, before it has the potential for development. Memecoin with more than $100 million FDV is a mature Memecoin, with weaker speculative attributes and enhanced investment value.
• Liquidity and MM analysis: generally the better the LP liquidity, the more LP liquidity locks, on behalf of its more secure, and at the same time, through the observation period of daily trading volume and K-line analysis, whether there is MM and strong strong bank, there is a stronger MM, better trading volume on behalf of its buy and exit, more convenient, there is a potential space.

The more commonly used MemeCoin ticker aids include the following:

GMGN: https://gmgn.ai , ticker trading software. Its features include new coin discovery, smart money tracking, coin price signals, K-line quotes, trade buying and selling, TG trading BOT, chip distribution, security detection, and other functions.

DEXSCREENER: https://dexscreener.com, ticker trading software, whose features include new Token tracking, personal Portfolio, Watchlist list, signal alert alerts, KK-line quotes, trade buying and selling, chip distribution, security detection, and other features.

Dextools: https://www.dextools.io is a veteran ticker trading software whose features include daily hot Token list, Token pool tracking, on-chain large transaction tracking, Token creation, KK-line ticker, trading BOT, trading buy and sell, and other features.

Social Media Analytics: Lunarcrush (https://lunarcrush.com/) is a social media analytics tool for analyzing the market impact of social media and crypto assets and understanding market sentiment through visual data.TwitterScore (https://twitterscore.io/) is used for the analysis of Token and KOL Twitter accounts to analyze information such as a number of followers, creation date, score, top followers, and more.

Trading BOT: Trading BOT is usually used for pending orders, automatic stop loss and take profit and stop loss, follow order smart wallet, etc. TG Bots on different chains can be selected through the Bots data on Dune https://dune.com/rolandgem/tg-bot-landscape.

Security Monitoring Tools: Token Security Monitoring https://gopluslabs.io/ Security monitoring tool: honeypot.is honeypot.is Chip Distribution Tool bubblemaps.io , Rug detection https://rugcheck.xyz/

6. Summary

MemeCoins are a unique phenomenon in the cryptocurrency market, relying on Internet pop culture (meme), social media communication, and community consensus rather than technological innovation or practical application.MemeCoins derive their core value from the “attention economy”, attracting users’ attention and speculative capital through the culture of modeling and viral online communication. The core value of MemeCoins comes from the “Attention Economy”, which attracts users’ attention and speculative capital through modeling culture and viral networks.

MemeCoins usually have no clear application scenario or product support, and are more of a cultural symbol that reflects the collective sentiment of the Internet era and the speculative psychology of the market. Their prices are extremely volatile and investors tend to profit from short-term market sentiment movements, but most users face losses when the market bubble bursts.

The emergence of MemeCoins reflects the new wave generated by the intertwining of Internet culture and the financial market, which is not only a product of market speculation but also a reflection of community-driven power. In the future, MemeCoins may continue to gain market popularity through its cultural influence and online dissemination, but its investment risks should not be ignored.

And when it comes to MemeCoins investment, successful strategies often include sensitive observation of social media movements, timely entry and exit, and strict risk management. Due to its highly speculative and uncertain nature, investing in MemeCoins should be considered high-risk behavior, and investors need to be cautious and control the proportion of their investment in order to avoid becoming a victim of PVP.

7. References:

1. Memecoin Super Cycle: a revolution that disrupts the traditional crypto narrative https://www.techflowpost.com/article/detail_20718.html

2. The Memeing of Money: Game Theory Meets Memes

https://medium.com/neworderdao/the-memeing-of-money-game-theory-meets-memes-ed683c67c765

3. Who is Murad, the “new leader of meme”, who has a meme position of more than $24 million and has been calling institutions to his car for 20 minutes? https://www.theblockbeats.info/news/55303?from=telegram

4. Inventory of “Pump. fun” in each chain, where to play to make money?

https://followin.io/zh-Hans/feed/12596973/ZnJvbT13ZWJzaGFyZSZpYz1kYXl1JnN1PTQwNzU2NjY5MDgmdGltZXpvbmU9OCZ0cz0xNzI0MzgyMjU0MjIx

5. What’s really happening in the blockchain industry?

https://x.com/Ryanqyz_hodl/status/1821045231539872101

6. VCs who are locked into a “paper rich”, “hellishly difficult” cycle

https://followin.io/zh-Hans/feed/12508200/ZnJvbT13ZWJzaGFyZSZpYz1kYXl1JnN1PTQwNzU2NjY5MDgmdGltZXpvbmU9OCZ0cz0xNzIzOTQ2NjczNDk2

7. Binance Research: Low liquidity and high FDV tokens are prevalent. Why has the market evolved to what it is today? https://www.theblockbeats.info/news/53577

8. Why do you think Pepe has a higher ceiling than Ordi? https://x.com/_0xSea_/status/1802502501671092581

9. 10,000 times in five days: an in-depth review of $GOAT’s $300 million impact road https://news.marsbit.co/20241017001514833985.html

10. Memecoin Toolbox 3.0 https://x.com/xixi_kawayi/status/1835311676910141807