Edited by Wu Blockchain
In this conversation, Wu Blockchain founder Colin and "Memecoin King" Murad Mahmudov discussed the unique role and prospects of Memecoins (such as Doge and Pepe) in the cryptocurrency field. Murad shared his transformation from a Bitcoin believer to a Memecoin investor, and explained the community-driven force behind the success of Memecoins. He believes that Memecoins are not only objects of short-term speculation, but also a form of social innovation, with stronger "mass enrichment" potential compared to traditional VC tokens. Murad emphasized the importance of evaluating Memecoin communities and leadership, and predicted that the participation of the Asian market will drive a global Memecoin craze. Furthermore, he took a cautious stance on AI Memecoins, believing that more time is needed to assess their community vitality.
Murad's Self-Introduction
Colin: Hi, Murad. You have been called the new "Memecoin King", and you became more famous after the 2049 Summit in Singapore. First, can you introduce your background and experience?
Murad: Sure. My name is Murad, and I'm from Azerbaijan. I went to university in the US. During that time, I spent a year in China, specifically in Beijing. That year was special because it was the end of 2013, when Bit experienced a bubble and the price reached $1,000 for the first time. I was fortunate to meet friends in Beijing, both from China and the West, who were early members of the Bit community, which allowed me to first encounter cryptocurrencies.
I took a break for a while, but from 2016-2017, I became more deeply involved in the cryptocurrency field. I worked in traditional finance in Hong Kong and was a commodity trader in Singapore. But since 2017, I have been fully committed to the cryptocurrency field - writing, reading, investing, trading, and analyzing various models and trends in the industry. This time, I am building a DeFi protocol, but I am also very focused on investing, trading, and analyzing Memecoins. Memecoins are the core focus of my attention in this cycle.
Princeton's East Asian Studies and Finance Specialization
Colin: I've read your interviews, and some people have mentioned that you graduated from one of the top universities in the US, Princeton University. This is also part of your reputation in the community - people say you focus more on data and charts when analyzing Memecoins, rather than just focusing on "hype" techniques, right? Can you tell us how you got into Princeton and what you studied there?
Murad: I applied as an international student. I feel a bit lucky because, coming from Azerbaijan, I faced slightly less competition compared to some of my international friends from China. The main focus at Princeton was East Asian studies and finance - this was my core focus. I really enjoyed my time there, met many excellent classmates and professors, and I'm really glad to have had that experience.
Early Cryptocurrency Career and Insights on OKX
Colin: What did you do after graduation? When did you officially join the cryptocurrency industry? I saw in your interviews that you met some OKX employees in Beijing. Is this related to your entry into the cryptocurrency industry? You also mentioned that your previous fund encountered setbacks around 2020. Can you talk about this?
Murad: In 2013, OKX was still called OKCoin, and at the time they only had four people - three Chinese and one foreigner. That foreigner happened to be my friend in Beijing, and he encouraged me, saying, "You need to get into BTC, you need to research BTC." This was indeed my first contact with Bit. However, over the next two to three years, I didn't make much move in the cryptocurrency field. It was around 2016-2017 that I returned to the cryptocurrency field and committed to it full-time.
From Traditional Trading to Memecoins
Colin: When you first joined the cryptocurrency industry, you didn't focus on Memecoins, right? You were more inclined towards traditional trading at the time?
Murad: That's right. In fact, in 2017, I did hold a bit of Dogecoin, but at the time I wasn't a true believer - it was more like occasionally trying out ICO, altcoin, and other trading opportunities. In 2016 and 2017, I was exploring this field, but by 2018 I had become a Bit maximalist, a hardcore Bit enthusiast.
What many people don't understand is that much of the philosophy and literature of Bit is excellent preparation for understanding the current Memecoin field. Why? Because today's Memecoin craze is about building communities, almost like establishing a "faith" or a new technological "religion". In this sense, Bit has always been the largest and most successful community "faith". Therefore, my view is that successful Memecoins are those that are similar to BTC in terms of community and faith following. Doge is also a key influence, as it was one of the early successful Memecoins.
To answer your question, I did have some Dogecoin in 2017, but I sold them in 2018 - at the time it was more of a casual holding. However, by 2023-2024, I started to see the potential of Memecoins and became a more steadfast believer in the Memecoin field.
Bit Has Meme Qualities, but Primarily as a Store of Value
Colin: So you think Bit also has meme qualities, right? Are you still a Bit maximalist?
Murad: In terms of currency, yes, I am still a Bit maximalist. I believe Bit is a core currency, while Memecoins are not truly "currencies" in the real sense - they are a different asset class. So, is Bit a Memecoin? Bit does have some meme qualities, but I would divide it this way: Bit is probably 80% store of value, 10% medium of exchange, and 10% meme. Whereas Memecoins are the opposite - about 90% meme, and maybe only 10% as currency or store of value, or other functions. Different asset classes in cryptocurrencies have these components, but in different proportions.
The Success of Memecoins Comes from Fair Distribution and Community, While VC Tokens Suffer from Overvaluation
Colin: Okay, looking back over the past year, what do you think has driven the popularity or success of Memecoins? Does this also reflect the failure of VC-backed tokens?
Murad: There are a few reasons behind this trend that I would mention. First, when altcoins first became popular in 2017, many of the initial valuations were reasonable. For example, you could buy Binance Coin (BNB) for an initial valuation of around $30 million. Chainlink (LINK) was around $25 million, and even Ethereum's issuance valuation was close to $35 million. These starting points were crucial for sustainable growth.
But now, many VC tokens have gone through multiple private funding rounds before being opened to the public. When these tokens are listed and available for public trading, the initial valuation is often already very high - sometimes reaching $10 billion or even $15 billion - even though they lack a user base, revenue, or even complete software. When a token launches at such a high valuation without substantial support, its price is almost destined to decline.
Over the past 5-6 years, I've called this practice "global IQ arbitrage". VCs are actually exploiting uninformed global investors. The problem is that many retail investors treat these tokens as stocks or equity, but this is a misunderstanding. In fact, the connection between these tokens and the underlying software is often very loose, or even lacking any substantive relationship.
Now we are facing a situation of oversupply of tokens and inflated valuations. Many newly launched tokens continue to decline in price after listing on major centralized exchanges, and there are another $160 billion worth of tokens set to unlock over the next four years. This is a terrible investment environment for ordinary investors.
I believe that more and more people, especially young investors, are realizing that these so-called "tech" Altcoins are essentially just Memecoins with a "tech" label. If they are ultimately just Memecoins, why would one pay a high price of $20 billion to buy VC-backed tokens instead of participating in early ICO tokens like Chainlink or BNB? When you start a project from the beginning, gradually build a community, and cultivate a fair, grassroots-driven development model, it forms a genuine journey that benefits the common people.
When ordinary people can accumulate wealth through Memecoins, it creates a passionate and loyal community. Those who have profited from the success of Memecoins often quit their jobs and devote themselves to it full-time, helping to promote, grow, and strengthen the community. This is why Memecoins are able to build a strong belief following. This fair opportunity is causing Altcoins to lose their advantage, while Memecoins are currently thriving.
Recommend long-term holding of selected high-quality Memecoins
Colin: You've talked a lot about holding Memecoins, but some people think Memecoins are just short-term trading assets. Why do you think Memecoins can be held long-term? When is the right time to sell?
Murad: My overall philosophy is to stop trading and focus on holding - or what we call "hodling". I know that 99.999% of Memecoins are just pump-and-dump projects; they are highly volatile, fluctuating up and down almost daily due to hype. But my view is that this cycle will see 10 to 20 Memecoins that can sustain development.
These Memecoins will have a strong, almost "faith-like" community - similar to Dogecoin, which has succeeded across multiple cycles. Doge has performed well in three cycles, and we believe that three to five Memecoins in this cycle will be able to cross multiple cycles and continue to perform. These Memecoins will set new highs in multiple cycles, then form higher lows, and may even reach new peaks again by 2027 or later, possibly in 2028-2029.
So I'm not focused on short-term trading or gambling with Memecoins, my goal is to identify projects that can be held for over a year. As for when to sell, I recommend doing some profit-taking in Q4 2025 or Q1 2026 - about a year from now. That's why I encourage people to look for high-quality Memecoins with strong communities and "diamond hands" and hold them as long-term investments.
The key to investing in Memecoins is community strength and "diamond hands"
Colin: I know you've already identified some tokens you think are the best. But what strategy would you recommend for the community or others to help them choose Memecoins?
Murad: The key is to understand that when you invest in Memecoins, you're not just investing in the meme itself - you're investing in the people behind it. Researching and analyzing the community is crucial. Look at the average investors, the largest holders, the leadership team, their activity on social media, and the concepts they're promoting.
In my view, some select Memecoins will have a "diamond hands" culture, meaning they have committed long-term holders. You can actually track this behavior through on-chain data and analytics tools, rather than just relying on subjective impressions. Look for communities with a strong "hodling" culture and diamond hands - those are the ones worth investing in.
Overall, look for Memecoins that have a realistic chance of reaching $10 billion, $20 billion, or even $50 billion in market cap. If the community truly believes they can reach those levels, many people will choose to hold rather than sell. This way, you can treat it as an investment, not just a trade.
The US election has limited impact, global economic factors are the main drivers
Colin: Do you think the US election results will impact Memecoins?
Murad: I don't think so. While Trump may be slightly more crypto-friendly, the popularity and success of Memecoins are not dependent on the four-year election cycle. Instead, I believe it's the long-term economic issues like inflation and global money supply that are driving people towards cryptocurrencies and Memecoins, rather than any political events.
Publicly sharing wallet addresses has little impact, holding strategies are also public
Colin: Does publicly sharing your wallet address affect you? I heard your address has been public for a while, right?
Murad: Yes, many people already know my address, and it's been public for some time. I don't have any issues with this, as anyone can check my wallet and see that I only buy, not sell. I've mentioned in many podcasts and different forums that I plan to take some profits in Q4 2025. People can verify that I'm actually doing what I said I would.
Meme projects need market makers, but choose "clean" partners
Colin: What's your view on the role of market makers in the Memecoin space? Companies like Wintermute or DWF, for example? We also see GSR, another major market maker, recently facing trouble with the US government, but they're still involved in many Memecoin projects, right?
Murad: My view is that some market makers operate in a clear and transparent manner, while others do not. I won't name names, but if you're part of a Memecoin project, you inevitably need a market maker, especially when listing on tier-1 exchanges. My advice is to choose a "clean" market maker with a good reputation and transparency, to ensure the project runs smoothly and maintains a good image.
Centralized exchanges are still key liquidity sources for Memecoins
Colin: What are your thoughts on the importance of centralized exchanges for Memecoins, like listing on Binance?
Murad: I believe centralized exchanges are still important because many users don't engage in on-chain trading, but focus on centralized platforms. Hundreds of millions of people use these exchanges. While their importance may gradually diminish in each cycle, they are still key participants in providing liquidity and access channels in this cycle.
Solana is the preferred Memecoin platform, but multi-chain is the future trend
Colin: In the Asian community, there has been some discussion around Solana and Ethereum - particularly since Solana has performed well in this cycle. Why are most Memecoins issued on Solana, and does Ethereum still have a chance?
Murad: Most Memecoins choose Solana because it's cheaper and faster. Young people are constantly active on platforms like TikTok and Twitter, seeking speed, which makes Solana more appealing. So yes, currently around 99% of Memecoins are on Solana.
However, I believe the best Memecoins will ultimately be deployed on both Solana and Ethereum, and even expand to more chains through cross-chain bridges (like Wormhole) and other cross-chain solutions. In the future, I expect the strongest Memecoins to go multi-chain. Personally, I'm not too focused on the specific chain, but more on reaching as many chains as possible. You can think of each chain as a centralized exchange, providing access channels for different user groups. So the more chains a Memecoin is involved in, the more beneficial it is for its distribution and community growth.
Focusing on Ethereum and Solana, less on the Bitcoin ecosystem
Colin: Would you also look at projects like Bitcoin Ordinals or other on-chain gaming projects? Do you think Memecoins might also appear in the Bitcoin layer 1 ecosystem or platforms like TON?
Murad: To be honest, I'm not too focused on the Bitcoin ecosystem. I have some interest in Bitcoin Ordinals and certain projects (like Bitcoin "punks"), but my main focus remains on Ethereum and Solana. These two platforms have historically had a more active Memecoin culture, are closer to retail users, and can better attract new users and provide more experimental space for new applications and infrastructure. TON is also interesting, but I believe the main capital and innovation for Memecoins in this cycle will flow towards Ethereum and Solana.
Expecting increased Asian market participation in Memecoins
Colin: Additionally, many well-known Memecoins are still concentrated in the Western world, right? Are there any famous Memecoins in the Asian or Eastern markets?
Murad: Yes, we are indeed seeing a growth in Asian interest. For example, the Pepe community has a large following in China, and smaller tokens like Pop Cat are also very popular across Asia. From my current observation, I believe that more Chinese, Korean, and Japanese communities will join the Memecoin space in the coming months, especially starting from the first quarter of 2025. It is currently more Western participation, but I expect Memecoin to become a truly global phenomenon next year.
AI Memecoin has potential, but needs time to mature
Colin: Additionally, the AI tokens supported by a16z have been very popular recently, but they don't seem to have the AI theme that you support, right? What are your thoughts on AI-themed Memecoins? Would you consider adding them to your portfolio?
Murad: I'm still researching the AI tokens. I do believe that AI-themed Memecoins will form a distinct category, just like dog or cat-themed tokens. I think they will become a unique segment within the Memecoin space.
However, at the end of the day, Memecoins are not a technological innovation, but a social innovation. My view is that the core of Memecoins lies in the people and the community. Since AI tokens are relatively new, their communities need more time to develop. They need more price volatility and sideways movement to allow the community to grow and consolidate. So, I may need another month or two to observe the stability of these AI tokens and see which ones have strong price support and community growth, which are the factors I tend to value.
Colin: I understand. Many of my friends primarily trade Memecoins because, as you said, the valuations of VC tokens are very high, making it difficult for regular people to profit. For many, VC tokens are more prone to losses, while Memecoins offer a more accessible opportunity. Those tokens that get listed on major exchanges often experience price declines, which can be disappointing.
Murad: Yes, that's absolutely right.
Colin: Okay, thank you for your time.
Murad: Thank you, I'm grateful!
