In less than a week, memecoin fanaticism has swept the entire cryptocurrency market, and many projects have sprung up, including Pepe’s frog series coins PEPE, WOJAK, and Chad.
With the crazy rise of meme coins, the gas fee of Ethereum continued to soar. Just yesterday (19) the median gas fee reached 73 Gwei, a record high in the past six months. The median gas fee even soared for several hours that day To more than 100 Gwei, its fanaticism can be seen.
However, when the meme explodes, it is always at the moment when the market is in jeopardy. But what is worthy of review by all investors is how to ambush these opportunities in advance under the premise that funds will return to “memes” every time the sector rotates. This article will briefly sort out several common features of memes.
Further reading: Ethereum Gas “rushing 100Gwei”! Memecoin was arbitraged by MEV, and a single address consumed 7% of the total Gas
How to grasp the “memecoin” opportunity?
1. The total amount of tokens is extremely high, catering to the “heart” of retail investment
The most common feature of common memes is that the “total amount of tokens” is extremely high, and the secondary market price has a very large number of 0 digits after the decimal point. Although for smart investors, the high total amount of tokens does not affect the purchase motivation, but for retail investors, the unit price of BTC/ ETH is too high, and users with too small funds cannot hold integers, which often discourages investors outside the circle.
Therefore, memecoin is precisely to grasp the investment psychology of retail investors. It is favored by newcomers for its cheap unit price, fun and easy to spread and understand.
When a user buys a token with 100 US dollars, the number is calculated in billions, and some even display methods need to be expressed using scientific and technological methods, the impact on users or investors is extremely strong, and caters to investors psychological needs.
2. MLM topics with “discussion”
From the former king of memecoin “Doge(Dogecoin)” to various derivative Dogecoins later, or to the recently popular PEPE (Pepe Frog), these tokens have a strong ability to create topics .
When investors see the name of the token for the first time, they can always understand the meaning behind it without thinking. PEPE, which is now popular, has long been one of the most popular memes, but it has not been used as a theme in the encryption market until now. hype. The topic is to break the market-based discussion of “dogs”, which arouses the emotional resonance of the market, and the meme foundation of PEPE itself immediately makes all retail investors flock to enter the market.
Another meme project, ArbDoge AI (AIDOGE), which has sprung up in the Arbitrum ecology recently, uses the hottest theme “AI” + “Doge” in the current market to quickly attract market attention.
Further reading: Meme coin AIDOGE rises another 200%! The number of Twitter posts in a single day exceeded 680,000, and someone opened a contract to earn 8,000%
3. Easy-to-understand token economics
Whether it is Dogecoin in the past, or PEPE and AIDOGE today, what they have in common is a simple and easy-to-understand token economics, among which PEPE is based on 420 trillion (420 is the representative number of marijuana) The total supply, so that everyone can clearly understand the meaning behind it. Not only that, PEPE was launched on April 14th, and PEPE will also usher in April 20th not long after its launch.
In addition, all token distribution of memecoin is also distributed fairly, and there is no VC and project party involved, so there is no excessive selling pressure in the early stage of the market, and memecoin quickly rises through pyramid schemes, Attract the attention of market investors.
To sum up, to participate in the fanaticism of memecoin, various factors must still be considered, including: the strategy of the operator, the participation of stakeholders, the innovation of the project and…etc.
But when we find that a project is free and fair to the market When everyone or a group with a spreading effect distributes tokens, after confirming that there is no contract authorization risk in receiving tokens for the project, proper participation may have a better risk-reward ratio.
However, memecoin investment is a high-risk investment project after all. When the market is unstable or the risk coefficient is high, you should invest carefully and control the risk. During the investment process, one must maintain risk awareness and avoid blindly chasing popular projects while ignoring risk control.