Author: Gryphsis Academy Source: medium Translation: Shan Opa, Jinse Finance

introduce

MEME plays a vital role in Web3 culture and quickly resonated with the digital currency community due to its unique communication method and widespread popularity. These digital images or concepts, full of humor and irony, not only strengthen the connections within the community, but also become an important tool for expressing opinions, emotions and market trends. MEME can overcome language and cultural barriers and allow widespread sharing at minimal cost, making it key to increasing awareness and participation in Web3 projects.

The recent surge in market performance of the MEME token has attracted widespread attention. The leading token in the MEME space, BOOK OF MEME ($BOME), has seen a price increase of 1000% in a short period of time. This obvious wealth effect has once again drawn attention to the MEME track. According to data from CoinMarketCap, the market capitalization and trading volume of the MEME token have increased significantly, highlighting MEME’s popularity and strong investor interest. The attraction of investing in MEME lies mainly in the large issuance of tokens and low unit prices, which makes them attractive for financing in bull markets, with investors seeking the opportunity of high returns from small investments. Additionally, MEME tokens often revolve around lighthearted and humorous themes.

1. How MEME spreads and utilizes emotions: FOMO effect

In the fast-paced world of cryptocurrencies, the appeal of MEME tokens can often be attributed to their powerful impact on investor sentiment. One emotion in particular: FOMO, the fear of missing out. This strong feeling is critical to driving the spread and building value of the MEME token. Let’s explore the dynamics of how the MEME token attracts emotions, with a focus on triggering FOMO:

1.1 Viral social media – a catalyst for panic buying

The MEME token has the ability to quickly attract attention through widespread viral sharing on social media platforms. An engaging tweet or an engaging Reddit post about the MEME token can spread like wildfire, reaching a large audience instantly. The dynamic interplay between social media virality, community engagement, and KOL influence creates a powerful force driving the MEME token market. Investors, sensing the quick gains others saw and swayed by the stories woven around these tokens, bought in, hoping to capture some of the magic for themselves. The underlying desire to be part of a success story, combined with the actual fear of missing out on financial gains, fueled the frenzied participation in MEME token investments.

A prime example of this phenomenon is $DOGE, which saw a surge in popularity after Elon Musk tweeted about it. It has been observed that every dog-related tweet from Musk causes the price of $DOGE to surge significantly in the short term. The pattern highlights the power of social media in triggering a buying frenzy among investors worried about missing out on potential profits after high-profile endorsements.

1.2 Price fluctuations – emotional investment craze

The roller coaster ride of market prices and performance plays a key role in triggering investors' "fear of missing out" (FOMO). As the value of the MEME token soars, so does the fear of missing out on lucrative returns. This whirlwind of emotions, fueled by market hype and sensational news reports, drives more and more people into an investing frenzy, all driven by the urge to take advantage of what appears to be a golden opportunity.

Silly Dragon was launched by Solana founder Anatoly Yakovenko during Halloween 2023. It gained trust and authority with the direct support of the founders of the public chain, further promoting its wealth effect. $SILLY has shown significant market growth in a short period of time, reaching a market capitalization of $70 million, holding more than 8,600 addresses, and a pool of funds on the blockchain reaching $1.2 million. This rapid market growth is seen as a wealth effect, attracting more investors and traders.

1.3 Strategic Storytelling – Weaving Wealth Creation Myths

The success of MEME token businesses often hinges on their ability to weave a compelling story. These carefully crafted stories not only attract investors but also create strong emotional connections that make them feel like an integral part of a great legend. This sense of belonging and the potential to create wealth fuels a FOMO frenzy that drives investors into the market for fear of missing out on historic opportunities.

$BOME stands for "Book of MEME". Created by renowned Pepe MEME artist Darkfarm, the project ambitiously seeks to build a comprehensive library dedicated to the permanent storage and creation of MEME content. $BOME quickly came into the spotlight, going viral on social media and rapidly rising in market cap. The "Book of MEME" concept cleverly integrates MEME culture and blockchain technology to realize the preservation and sharing of MEME content on a decentralized platform. Through the exciting pre-sale activities, $BOME successfully attracted a large number of investors and community members, demonstrating how a unique concept and active community participation can significantly promote the rapid acclaim and valuation of the MEME token in the digital currency field.

1.4 Scarcity and the race against time – the urgency to act

The strategy adopted by the MEME Coin project to increase the sense of urgency among potential investors is to create a sense of scarcity and emphasize timeliness. This urgency is created through limited-time offers, exclusive airdrops, and support from influencers or the ecosystem, forcing investors to act quickly. The fear of missing out on these fleeting opportunities leads to quick decisions, ensuring that individuals feel compelled to join immediately.

$AIDOGE launched a progressive airdrop strategy that more generously rewards early participants and stimulates rapid participation, generating market buzz and initial demand. In addition, it implements a 15% transaction burn fee for each blockchain transaction, dividing the fee into ecosystem development, token burning, and rewards for liquidity providers and stakeholders. This approach not only reduces the token supply, making $AIDOGE more scarce, but also increases value, attracting a wider range of investors

2. MEME’s impact on the public blockchain ecosystem

The MEME token has considerable influence on the public blockchain ecosystem, attracting a large number of new users with its engaging narrative and social media prowess. The influx of users has not only reinvigorated community participation, but also injected significant liquidity into the ecosystem, especially benefiting decentralized exchanges (DEX) by reducing transaction costs and enhancing market operations. In addition, the surge in popularity of the MEME token has created a mature innovation environment, promoting the development of the DApp, DeFi and NFT fields and contributing to the diversity and growth of the ecosystem.

However, the MEME token’s appeal also comes with its challenges. Their notorious volatility may bring unpredictable and unstable factors, posing risks to the continued development of public chains. Navigating this landscape requires striking a delicate balance between embracing innovation and managing market dynamics to maintain a healthy and evolving ecosystem.

Case Study 1 — Solana’s $BOME Phenomenon

$BOME was born in the Solana ecosystem by Pepe MEME artist Darkfarm, providing a prime example of the multifaceted impact of the MEME token:

A. Increased community engagement: $BOME’s pre-sale and debut created a huge buzz, attracting many new enthusiasts and investors to join the Solana network. This surge not only increases transaction volume but also strengthens Solana’s position in the digital currency space.

b. Liquidity pool growth: Through pre-sales and airdrops, $BOME has contributed significant capital inflows to Solana’s liquidity pool. This not only enhances the liquidity of the Solana decentralized exchange, but also enhances the trading depth and market vitality environment of other projects in the ecosystem, cultivating a more active market.

C. Ecosystem Diversity: The successful launch of $BOME highlights Solana’s openness and support for MEME token businesses, attracting a series of similar initiatives to launch on the platform. This trend expands ecosystem diversity and spurs innovation.

d. Investor confidence: The market history of $BOME has the ability to affect investor sentiment towards the Solana ecosystem. Its success could bolster confidence in Solana's potential, while any downturn or controversy could damage the ecosystem's reputation.

The story of $BOME on Solana highlights the complex interplay between increased community engagement, liquidity injections and ecosystem diversification against a backdrop of underlying market volatility and fluctuating investor confidence. Momentum appears to be on the rise as Solana's Total Value Locked (TVL) has staggeringly grown to over $4.3 billion, jumping more than 100% in just one month. The continued inflow of funds and the accelerated pace of listing Solana tokens on exchanges is further evidence of the ecosystem’s growing vitality and traction.

Case Study 2: Impact of $DOODOO on Aptos

$DOODOO debuts as the first real token on the Aptos platform, highlighting the platform’s commitment to innovation and fostering a community-driven environment. This launch is more than just launching a new token; it is integrating the vibrant culture of MEME coins into the fabric of emerging public chains like Aptos, demonstrating the potential for unique value creation in these ecosystems.

A. Expanding community participation: The launch of $DOODOO is expected to attract members of the MEME coin community to join the Aptos ecosystem. Known for their active presence on social media and cryptocurrency forums, these enthusiasts are likely to spark Aptos community engagement and significantly increase user interaction levels.

b. Improve market liquidity: Echoing Solana’s recent momentum in accepting the MEME token, $DOODOO will attract significant trading activity for Aptos. The influx of liquidity providers and traders is expected to enhance the financial ecosystem of Aptos decentralized exchange and enrich the network’s liquidity landscape.

C. Fostering innovative applications: The successful launch of $DOODOO could become a beacon for developers, encouraging the creation of cutting-edge DApps and smart contracts on Aptos. Especially in areas closely related to MEME culture, such as NFTs and games, we can foresee a large number of creative applications that will enrich the platform's products.

d. Increase media visibility: MEME tokens have a knack for attracting media attention, and $DOODOO is no exception. Its listing is likely to increase the visibility of the Aptos ecosystem, attract a wider audience of developers and traders, and position Aptos as an emerging center for blockchain innovation.

e. Ecosystem nourishment projects: Public chain foundations play a vital role in maintaining growth by supporting ecosystem projects through investment and token incentives. Incentives provided to ecosystem project users in the form of APT tokens can bring a steady stream of capital to drive further expansion and development.

In essence, the entry of $DOODOO into the Aptos ecosystem heralds a range of positive outcomes – from increased community engagement and increased liquidity, to the stimulation of novel applications, increased media interest and the nourishment of the strategic ecosystem. Together, these developments are expected to accelerate the growth, diversification and maturity of the Aptos platform, creating fertile ground for innovation and collaboration.

3. Identify potential thousand-fold memes

Although the MEME token departs from traditional financial metrics and business applications, it has the unique potential for explosive growth, driven primarily by community support and social media momentum. These tokens represent a high-risk, high-reward investment frontier, and their success stories are often accompanied by viral trends and significant community engagement. However, the volatility of the MEME token means that while a few tokens may see impressive returns, many others face rapid rises and equally rapid declines. Investors should explore this area diligently and adopt strategies focused on early detection and engagement.

Criteria for identifying breakthrough MEME tokens:

3.1 Cultural virality and initial participation

Look for MEMEs with easily shareable content and a strong initial following. Tokens like $DOGE and $SHIB gained traction on Web2 platforms before making waves in the Web3 space, laying the foundation for widespread acceptance.

3.2 Active community dynamics

An engaged community is the key to success. Double-check the token’s presence on social media channels and the level of interaction among members. Signs of FOMO and KOL endorsements can indicate positive momentum.

3.3 Transparent and experienced team

Survey project leadership to assess their expertise and track record. Projects led by reputable teams, backed by solid white papers and economic models, have a greater chance of success.

3.4 Engaging narrative

Compelling stories that challenge the norm or present a unique angle can significantly attract attention. Controversy and mystery can also enhance a token’s appeal.

Spotlight on $SLERF: Narratives of Resilience

$SLERF embodies the power of narrative in the MEME token market. After an unconventional series of events, including the accidental burning of important assets, $SLERF has managed to maintain its popularity. The project's ability to transform potential disaster into a compelling story of community support and resilience - highlighted through notable recognition and humor-driven engagement strategies - not only sustained interest but also encouraged new investment, driving |202320232023202320236 | Ranking among the best in its market capitalization rankings. ecosystem.

Typically, the act of burning tokens in a liquidity pool when a token is issued is a gesture of commitment to presale participants. This action means developers lock in liquidity and give up the right to mint additional tokens, effectively ensuring they cannot manipulate the supply. Such initiatives are generally positively recognized within the community, indicating a positive outlook. However, $SLERF’s story took an unexpected turn when the founder of $SLERF revealed that the tokens used for the airdrop, along with the 535,000 $SOL accumulated during the pre-sale, were accidentally destroyed. This accident resulted in the loss of minting rights and a serious loss of liquidity, triggering $SLERF violent market fluctuations and making the token the focus of attention.

Amid wild price swings, $SLERF’s appeal remains intact, fueled by the founders’ engagement with the community through self-deprecating humor and unique events. To make up for this loss, $SLERF has launched a rescue fundraiser aimed at raising $10 million to reimburse presale participants. The effort is backed by big names and platforms, including Justin Sun, LBank and several other exchanges. Currently, $SLERF has been listed on well-known exchanges such as Bybit, Gate.io, LBank and Bitget, making it the third largest MEME coin by market capitalization in the Solana ecosystem. This story of resilience and community support highlights the unpredictable yet fascinating world of the MEME token.

3.5 Partners and supporters

Assess support from influential figures, exchanges or investment groups. Strong partnerships provide credibility and promote wider adoption.

3.6 Data-driven insights

Monitor growth trends and trading patterns with analytical tools. Keep an eye on the action of early holders or a sharp sell-off, which could signal a change in market sentiment.

3.7 Beyond the Hype: Looking for Practicality

As the initial excitement wears off, lasting value often comes down to practical application. Tokens that evolve to provide tangible uses or expand into a broader ecosystem tend to keep growing over time. For example, $DOGE has been used as a payment method, while Shiba Inu has expanded its value and user base by introducing an ecosystem including ShibaSwap and NFT platforms after growing its market capitalization.

Investing in MEME tokens is speculative in nature and emphasizes the importance of diversification and careful allocation. Participation in these tokens requires a balance between capturing the zeitgeist of cultural trends and recognizing the inherent volatility and risk. Smart investors will look beyond the hype and focus on projects with the potential for real community building, innovative narratives, and ultimately utility expansion. Remember, the key to navigating the MEME token landscape is not just following the crowd, but understanding the underlying dynamics and potential of each token.

4 Conclusion and outlook

4.1 Conclusion

The recent trajectory of MEME tokens highlights their critical role and influence in the cryptocurrency market. Characterized by rapid value transitions, wealth creation stories, and a community-focused ethos, these tokens capture attention and attract widespread interest and participation.

Their strengths often reflect broader cultural trends and market enthusiasm. A prime example is the Solana ecosystem, which has seen a resurgence thanks to initiatives such as the launch of Backpack Exchange and Jupiter's airdrop campaign. These efforts not only breathed new life into Solana's MEME project, but also attracted user participation and investment flows. Solana’s inherent attributes – low transaction costs and superior processing capabilities – further solidify its position as an ideal habitat for MEME businesses, fostering broad participation and increasing project popularity.

In addition, the innovative marketing method represented by Saga Web3 mobile phone giving away BONK tokens not only expands the coverage of MEME tokens, but also reflects the synergy between digital currency and tangible goods, opening up new horizons for MEME marketing. The convergence of artificial intelligence and cryptocurrency hints at an untapped growth trajectory for the MEME business, although this path also comes with certain risks, especially due to market sentiment and the prevailing FOMO effect, leading to potential instability for investors.

4.2 Outlook

Going forward, MEME token development will likely shift more toward technological breakthroughs and deeper community connections. As blockchain technology advances, we may see MEME plan to adopt complex smart contract functions, bridge different blockchain networks, and integrate with DeFi platforms to enrich user experience and value creation pathways.

The community-driven model will remain at the core, and projects will leverage NFTs, games, and social platforms to increase user engagement and loyalty, laying the foundation for a strong community. The very nature of MEME tokens – their cultural resonance and community consensus – will continue to drive their endurance and growth.

As the regulatory environment becomes clearer, adhering to compliance specifications will be critical to the continued success of MEME projects. At the same time, investor and market participant perceptions of the MEME token are expected to mature, favoring smarter investment decisions and value-driven holding strategies, marking a new MEME token narrative in the crypto world. Chapter.