Note: This article comes from @BTW0205 Twitter, and is compiled by Mars Finance as follows:
Recently, #MEME has been a bit popular. I participated in a few with small funds, some were 20 times and some were reset to zero. The winning rate is not high, and the main purpose is to give a sense of participation.
@elonmusk said: "Whoever controls MEME controls the world." I think it is necessary to discuss the underlying investment logic of MEME at an appropriate time! This may also help you find a golden dog that truly suits your rhythm in the crowded market.
This article includes:
1What is MEME?
2. What factors are needed for a good MEME?
3 How to discover/select potential MEME?
4 MEME strategy and escape from top and exit indicators
5 Is MEME valuable to the crypto?
1. What is MEME?
"Value investing is all in vain, All In MEME lives in the palace", this is the self-deprecation of value investors, and it is also the script being played out in the crypto world. Humor culture + irony must be an eternal theme in the crypto. After all, this group of us has it in our bones. Rebellion that refuses to admit defeat.
The development history of MEME token can be roughly divided into three stages:
Initial development stage (2013-2017): The concept of MEME encryption began to be proposed.
Mature stage (2017-2021): MEME coins with animal elements as the theme have become popular, the degree of market capitalization has been significantly improved, DOGE has become a representative, and innovative mechanisms and community governance have begun to emerge.
Outbreak stage (2021 to present): The promotion of MEME community members and the MEME market gradually matures. Golden dogs appear from time to time, and the market value reaches new highs repeatedly.
2. What factors do a good MEME need to have?
MEME is not only a cultural phenomenon, but also a key driving force for the growth and development of the crypto. So what kind of MEME coins are good quality coins that can make you rich?
Three key points:
Meme genes and concepts that are interesting, have a wide audience, or can spread spontaneously and spread quickly. People buy it just for fun, not just for money.
There is a relatively stable and continuously active publicity team, which drives the community to continue to grow. Community members join the team to help with publicity.
There is a certain amount of capital power behind the project, adding fuel to the flames and increasing the distribution of chips.
3. How to discover/select potential MEME?
That's a good question, I caught $DOGE $SHIB $PEPE , but at the same time zeroed out more items than you can count on one hand, and I believe no one has a 100% win rate on MEME.
The MEMEs you see often appear inadvertently. In fact, everything has its traces in the market. Looking back at the previous MEME outbreaks, there are several key time points and logics that I think are extremely important to pay attention to:
The end of the periodic market - the zoo period in April/May 2021
ETH/BTC breaks out of the consolidation range and becomes stronger - the bull-bear transition period occurs many times, and it is easy to first MEME, then NFT
The traffic overflow of the big innovation model - the hot MEME wave accompanying BRC20 from March to June 2023
The strong performance of public chain tokens - the popularity of each public chain almost follows the same set of SOPs: the first step is native tokens + DEX, then Memecoin, Lending Protocol, Launchpad IDO, among which MEME is the most likely to bring benefit effects This is true for both the last round of BSC and this round of #SOL .
So in the MEME trend, there are 100 local dog projects in the group every day, how to choose? There is a joke that goes like this——
If the group of friends is not optimistic and resolutely resists, you must buy it - suitable for ambush, more opportunities to enter and exit the market
If the group of friends is optimistic but hesitant, you can buy cautiously - it is easy to cause FOMO and miss the pump sentiment due to sudden surges, so keep an eye on the market appropriately.
If the group of friends is unanimously optimistic about it and buys it, be sure not to buy it - it is easy for the car to be heavy, it is difficult to give a chance to leave the market, or it requires a small level of tracking.
Don't tell me, although it's a joke, it's really effective, so you have to choose it this way. Choosing MEME depends on several aspects:
Monitor rising MEMEs
Validate cultural attributes, must be interesting and easy to understand
When studying fundamentals, focus mainly on popularity. Popularity is the first indicator of MEME survival.
Follow the smart money, wallet tracking, stand on the shoulders of the big guys
To sum up, the valuation of MEME = narrative size + emotional effect + celebrity effect + media effect, and the proportions are superimposed layer by layer.
Recommend several essential tools and websites for playing MEME
On-chain monitoring new tools : http://dtools.org
Is the contract open source: http:// tokensniffer.com
Is it Pixiu : http://honeypot.is
K -line market observation: http://dexscreener.com
Project fundamental analysis: http:// coinmarketcap.com
Track specific activity (contract deployments/abandonments, etc.): http:// poocoin.app
There are also some telegram robots that you can add and use yourself. If there is anything useful, you can add it in the comment area!
4. MEME strategy and indicators of escaping from the top and getting off the bus
A good MEME coin will complete its first life cycle in as little as two or three days or as long as one or two weeks from its initial launch to its real explosion. Due to the excessive short-term increase and the lack of a continuous reward mechanism, more people could not invest more time and capital, so it fell very quickly.
The life of most MEME basically follows the following path——
Early stage (market value 2 million) : There are only two or three KOLs talking about the project on Twitter. Watch and consider whether to buy it. At this time, the risks are high and the rewards are high, but there is also a high possibility that the project will not be completed.
Rising period (market value 5 million) : At least 5 KOLs are talking about it, and one or two Alpha communities have begun discussions. Hold patiently.
Stable period (market value 10 million) : When threads and media reports appear, second-tier exchanges issue announcement lists, consider selling points, and at least withdraw principal.
Final period (market value 100 million) : When the project spreads in six or seven communities, and is discussed by no less than 10 KOLs at the same time, and second-tier exchanges have been launched, it can basically be considered to sell out or 80%.
Only a very small number of MEMEs have a long flowering period and can impact the major exchanges and reach a market value of 1 billion.
Here are a few indicators of MEME coin escaping from the top, for reference only, #DYOR :
24-hour trading volume exceeds market capitalization
The number of holders decreases, or the growth of holders slows down significantly
Large whales start selling
Funding rate turns from negative to positive
When preparing to go to a big law firm, generally speaking, you won’t have big expectations after going to a big law firm. You will have crazy motivation only if you don’t go to a top three law firm.
5. Is MEME valuable to the crypto?
Some people believe that MEME coins distract the public from the innovation of encryption technology and that they have no intrinsic value. Some people believe that MEME coins embody society's commitment to the maintenance of digital property rights in a free market manner and are a pure expression of citizens' freedom of transaction.
In fact, there is nothing wrong with it, but MEME must be valuable, but the value is not necessarily reflected in the technical level. As @liping007 said, the popularity of MEME is actually satirizing the lack of opportunities in the mainstream currency market. Don’t blame the anti-intellectualism and greed of retail investors. The lack of opportunities for retail investors will cause the entire industry to lose its vitality.
#Crypto can’t live without MEME, just like a movie can’t live without popcorn. The market's FOMO emotions need to be adjusted and released, and MEME is the place that can best handle the spillover of emotions. Its pull-back does not require logic and is purely driven by emotions.
People come for money and stay for their ideals. If there were no MEME, the crypto would be so boring!
But what must never be forgotten is that MEME is a MEME where risks outweigh opportunities after all. Remember to set up position management and stop-profit and stop-loss, and maintaining risk awareness is the first prerequisite for survival. You’ve heard of a lot of people who got rich instantly, I’ve seen more #BTC that they worked so hard to save
#ETH #SOL is a story about having hands full of garbage.
Things in the crypto are unpredictable. Never look at the world the way you think it is. What you think is just your opinion, not the truth of the world. Play MEME well first, put aside your prejudices, be bold and careful. When you are in the tide, you know how slow the current is!
