According to the latest industry report data from CoinGecko in Q2 2024, 15 narratives such as MemeCoin, AI and RWA account for 77.5% of the crypto market share. Among them, MemeCoin directly dominates the list, and 4 of the top 15 most popular crypto narratives are related to MemeCoin. As shown in the figure below.
Although the vast majority of MemeCoins have no practical utility and are based on emotional hype, because they always have stories and possibilities of getting rich quickly, those projects that are more interesting and have good meme properties will continue to appear and quickly become popular in the crypto network and major crypto communities.
But investing in MemeCoin also requires paying attention to some basic rules, such as:
- Diversified investment. That is, you can consider investing in several projects at the same time, but don’t get too deeply involved in any one project, and the total funds invested in MemeCoin should not exceed 10% of your position (the specific allocation varies from person to person).
- Avoid blindly following orders. Don’t blindly follow KOLs’ wallet transactions. Now many (not all) so-called well-known KOLs will deliberately disclose their wallet addresses, in fact, just to follow orders. For example, they will deliberately enter some small pools, and when you see and follow them, they may have doubled their shipments. Don’t underestimate this kind of hype. If the number of fans is large enough and there are enough orders, they can use the harvested funds perfectly to continue a new round of games. Here is also an additional reminder that some so-called KOLs on the Internet currently release airdrop interactive tutorials. You should be more careful when operating. Some people use the airdrop tutorial method to let you mint the NFTs they issued themselves, and then harvest the fans’ ETH.
- Perform basic checks. In my previous article on MemeCoin, I have also sorted out many tools and methods. For example, you can verify whether there are any problems with the token contract (such as whether there is a RUG), check liquidity issues (such as LP 100% Burn), compare the number of holders and the matching degree of issuance time (trading activity, whether there may be insider trading, etc.), whether there are a large number of copycats (indicating that liquidity is beginning to be diluted), etc. before deciding to trade.
As for specific tools, Hualihuawai’s article a few days ago (July 26) has sorted out the top 20 tools for playing with MemeCoin. Those who are interested can look back at the historical articles. As shown in the figure below.
1. The issuance of MemeCoin is expected to exceed 100 million this year
Currently, the total market value of the Memecoin sector (the total market value of 1,600 MemeCoin tokens included in the CoinGecko platform) has exceeded $50 billion, far exceeding some popular narrative sectors, such as the AI sector, which currently has a total market value of $25.7 billion, the RWA sector, which has a total market value of $7.1 billion, and the DePin sector, which has a total market value of $21.1 billion. As shown in the figure below.
Of course, the statistics above only show the number of MemeCoins included in Coingecko (about 1,600), but in fact, there are a lot of MemeCoins on the chain. According to statistics from the DEXTools platform, there are 5,563,714 currencies (mainly MemeCoins) currently providing liquidity transactions. As shown in the figure below.
The more than 5.56 million tokens mentioned above are only the currencies that have provided liquidity, and the creation speed and quantity of on-chain tokens (everyone can issue tokens on the chain, but only the currencies that provide liquidity after issuance can be traded normally) will be much higher. Let’s take Solana as an example. At present, the SPL tokens on the chain (that is, the tokens created by the Solana standard) continue to maintain a creation speed of 15,000 to 20,000 per day. As shown in the figure below.
If this trend continues, by the end of 2024, more than 100 million tokens may be created on all blockchain networks (more than 100 networks), of which more than 10 million are expected to provide liquidity transactions.
However, among the vast amount of MemeCoins, there are not many that can maintain a certain popularity. The MemeCoins that are relatively popular and have a high topic recently include NEIRO, MYRO, CATDOG, MAGA, MAD, PUPS, etc. Of course, these are not listed for you to buy without thinking. MemeCoin is a very risky currency with great volatility. If you also want to find the next opportunity similar to NEIRO, it is best to spend time studying the process of these topical currencies becoming popular, and try to find some possible rules and ideas yourself.
2. How to identify promising MemeCoins at an early stage
The first and most important point is that it must be simple and easy to understand. In other words, the corresponding MemeCoin should have good meme properties, which are very easy to understand for most people, not just a small group of enthusiasts. For example, NEIRO is a cute dog avatar + a newly adopted pet by a DOGE owner, which seems easy for everyone to understand.
Then consider other aspects, such as:
- Good entertainment attributes
It seems that a successful MemeCoin should not design too many serious uses for itself. If a newly emerged MemeCoin project also claims that it has a strong team, various partners or investment institutions, and will do some XX ecological construction in the future, then it is best to stay away from it. Instead of buying such MemeCoin, it is better to choose a few top Altcoin in the popular track. For example, PEPE is a good example, because its entire concept seems to be just a frog with an exaggerated expression, which helps to attract a wider audience and can also derive more funny expressions. As shown in the figure below.
- Positive
There are two aspects to this. In addition to being interesting, MemeCoin should also show a more positive side, rather than insulting ones. Only themes full of love and kindness can have the opportunity to unite more people, and more people will be willing to join. Then it must be politically correct, that is, don't make fun of politicians who are not to be joked about, otherwise you will lose a lot of leeks.
- Long-term values
Here we can give a simple example, such as the recently popular PolitiFi concept MemeCoin, which is actually very time-limited. Tokens like TRUMP and KAMA are estimated to be popular only until the end of this year's US presidential election. But tokens like WIF advocate values such as progress, innovation, and transcending boundaries. Although this sounds very chicken soup and empty, it is indeed a long-term value that will not be outdated. This kind of value will not disappear in a day just because the hot event ends.
- Community cohesion
Some communities issue MemeCoin just to make money. This will only lead to short-term explosion and hype, and it is difficult to have sustainable development opportunities, because as the benefits are distributed, they will choose to withdraw and let the leeks take over. Only those MemeCoins that can continue to attract more people, even those influential people (or even institutions), will have a sustainable opportunity to appear. For example, FLOKI, LADYS, and MOTHER are MemeCoins that have been openly followed and invested by DWF (a well-known market maker).
3. MemeCoin creation platform for non-technical people
There are still many platforms and methods for creating MemeCoin. For example, in the previous article of Hualihuawai, we have sorted out the steps of using DEX (such as Dexlab) to create MemeCoin and add liquidity. But for most ordinary people who don’t understand technology, it only takes a few minutes to create a MemeCoin. For example, the following are the three major types of MemeCoin one-click coin issuance platforms we are going to introduce:
...This article is to be continued, and we will continue to supplement and update the remaining content through Huali Huawai.
This is where we share the content for this issue. This is also the 494th article updated by Hualihuawai.
