Written by: dt
The cryptocurrency market continued to be sluggish this week, and the prices of most tokens continued to fall. Even the newly issued coins of the two major projects, ZK Sync and LayerZero, could not escape the fate of falling. The biggest opportunity and hot spot in the market is still Memecoin, and Solana Memecoin is even crazier. The low transaction cost and the emergence of Pump.fun have lowered the threshold for issuing coins, making Solana the most active casino on the chain. According to the data report of node service provider syndica, 92% of the transactions on Raydium, the number one DEX on the Solana chain, are currently from Memecoin.
This week, Cryptosnap Dr.DODO will introduce several types of Memecoins based on several famous Memecoins in this bull market.
Source: https://blog.syndica.io/deep-dive-solana-defi-may-2024/
Banker Coin
BOME/ SLERF/ MEW/ MANEKI …
The author classifies all the coins in various large pools as banker coins. The characteristics are that the pool is large and the price is pulled up very quickly. They are also the targets with the greatest chance of getting rich overnight. The position capacity that can be invested is not only large but also has a high multiple. However, at the same time, the market value is often so high that it is difficult for people to enter the market. When participating in this type of project, you need to pay attention to the following points:
Project background: Taking BOME as an example, the founder Darkfarms is a well-known artist in the crypto, and the possibility of Rug Pull is not high.
Whether the liquidity pool is locked/burned: In addition to being a dealer’s platform, a large pool is also likely to be a scam that completely empties the pool in one wave. Taking SLERF as an example, the project team burned tens of millions of liquidity pools, which is also the reason why Fomo was so popular in the early days.
Trading volume: Trading volume represents the specific data display of the market's sentiment towards this project, and the popularity of the project can be judged based on the trading volume.
Market sentiment: The market sentiment here refers to the overall market trend, which is used to judge the potential high point of the project.
The author believes that this type of dealer coin pulls up quickly but usually only has one wave of market. The subsequent trend is often different from the investment logic of Memecoin with small funds and large multipliers. Because of the large pool, the return on small funds invested is not good and it is not recommended to participate again.
Hot News Coin
GME/ BODEN/ TREMP/ DJT/ NCAT …
Hot current events, such as Musk, Trump, or Roaring Kitty, can often find corresponding meme coins on the chain. However, this type of meme coin will also cause price fluctuations due to various news. Therefore, tracking news and making corresponding transactions is the most important thing to participate in this type of meme coin. For example, the most popular DJT Trump coin on the chain this week attracted many people to speculate due to rumors that Trump's youngest son Barron Trump was involved in it and the large pool attracted many people to speculate, but it also caused a sharp drop due to the news that Zach XBT, GCR and other famous CTs revealed the inside story; similarly, $GME caused crazy speculation due to the return post of Roaring Kitty, but soon after, it plummeted because Roaring Kitty's live video was meaningless.
Community Coin
POPCAT/ MICHI/ SC
The author believes that this type of cat and dog community tokens are the type of memes with the highest odds but also the highest failure rate. The highest odds are because this type of token often has a long enough bottom time to accumulate cheap chips, but at the same time, it is easy to fail due to insufficient scarcity. Whether the token avatar is eye-catching is the first point, but more importantly, the community atmosphere. The most important point to participate in this type of project is to join the community and observe whether there are enough enthusiastic community members who actively participate in the promotion. At the same time, it is also necessary to observe whether the volume of the token on Twitter has dropped or stagnated to make trading judgments.
In addition, the author believes that community-type meme coins will slowly gather consensus among retail investors when the market environment is good, driving prices to slowly rise. However, when the market environment is bad, the price will fall the fastest due to factors such as the dispersion of holding a large number of chips.
Celebrity Coin
MOTHER / RNT / PAJAMES
Celebrity coins have been a trend on the SOL chain in recent weeks, but most celebrities have no intention of operating tokens for a long time. Many of them are just one-time investors. However, if a celebrity with a lot of traffic outside the circle is willing to operate it, the token has great potential. At present, the most successful celebrity coin is $MOTHER. Rapper Iggy Azalea promoted her own token with millions of fans, and actively interacted with CT in the circle and communicated with community members, which is why the popularity has been maintained for so long. For the author, you should not be in a hurry to participate in celebrity coins, but you need to observe for a few days to determine whether the celebrity is willing to operate it for a long time before joining the way with a higher winning rate.
other
WEN/ BONK/ WIF …
In addition to the above, there are of course many types of hot meme coins, such as $WEN launched by the Jupiter team, or $Bonk rumored to be launched by the Solana Foundation to revitalize Solana. They all reached such a high market value because of the participation of the formal team behind them. $Bonk was born in a period when everything was in ruins, so its starting point was low and the multiple was high, but $WEN was born in the hot Solana Fomo period and had reached full expectations before it went online, so the multiple was not high; in addition, $WIF, which has the largest market value among Solana Memecoins and is also the weather vane of Solana Memecoin, is the most difficult meme coin to classify. It was born as a community coin but was favored by capital in the later period, so it jumped up and became the strongest target of Memecoin in this round of bull market.
Author's opinion
Given that the Solana Memecoin market is experiencing an avalanche period, the author does not recommend participating in any transactions now. Instead, it is a good stage to identify projects, especially community coins and celebrity coins. You can carefully go deep into the community to observe whether the community consensus is still firm under the downward trend. For celebrity coins, you can observe whether the leading celebrities can continue to invest in this token.
The author believes that Memecoin is not suitable for left-side trading, that is, buy the dips and bottom-fishing. Memecoin does not have the so-called fundamental value to maintain the bottom price. It is more of an attention economy and can only attract more attention when the price rises. A more appropriate way is to select targets with good foundations and add them to the watch list and wait for the wind to pick up before joining.
