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- 10 Lesser Known Reasons Memecoins Will Maintain Their Momentum
10 Lesser Known Reasons Memecoins Will Maintain Their Momentum
The memecoin market had a gigantic bounce today after Bitcoin seemingly found its local bottom. Let’s examine why memecoins will continue being a driving force during this crypto bull run.
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Most people get into Bitcoin and crypto simply because they want to make money. And who can blame us? Some of us have responsibly saved money in a bank account only to watch its purchasing power evaporate faster than an ice cube in the summer sun. Most of us have religiously put money into a 401K or other retirement plan that primarily benefits the largest stockholders, tech executives, Wall Street, and financial service professionals. Housing is a dream for many of us, and the lottery is a losing proposition.
The people who got into Bitcoin earlier made massive gains. It’s hard for the ordinary retail investor to stack up an asset trading over $60,000. Now, we see the same stockholders, executives, and Wall Street speculators having a land grab for Bitcoin. Unfortunately, they have more tools and firepower (money) to control the market than ordinary people.
And the thought of getting rich by having a job is a pipe dream for most. We are either facing student debt, oppressive insurance costs, credit card debt, costs associated with having children, or just a lack of good-paying jobs. Combine that with double-digit inflation on the things we actually consume and need to live, and the normal person with half a brain realizes they need to take a risk with the money they have.
Crypto offers the ordinary person a chance to make outsized gains. It’s unlike a Vegas casino, where the odds are always stacked against you. Crypto is a free market lacking any clear regulations or rules. The concept of digital property is unfathomable to most of the baby boomer crowd, who control most of the wealth.
And the lowest common denominator in crypto is memecoins. You don’t have to understand concepts like liquidity pools, token vesting, staking, rehypothecation, or other concepts crypto natives may be familiar with to get meemcoins. It’s pure supply and demand. And, because of its simplicity, I expect the memecoin market to continue outperforming in this bull run. Here are ten reasons to consider speculating in memecoins.
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They are fun. Memecoins allow for infinite creativity, which can be organically created by a community or manufactured by a smart, goal-oriented team. The idea can be stupid, based on popular Internet characters, or something as simple as an animal. Relating to a memecoin idea is much easier than getting excited about a Dex, lending protocol, or derivatives platform.
2) You can make returns like early Bitcoin investors in a fraction of the time. If most people enter crypto for financial gains, memecoins offer that opportunity on steroids. With leverage, certain memecoins fluctuate by hundreds of percent in a week. It’s like trading stock options on the expiration date, but they don’t expire.
3) They are typically inexpensive. It’s been proven that when higher-priced stocks split to a lower price, they tend to increase in value. Ordinary retail investors often get caught up in the price and amount of a stock they can own versus its market cap. Unfortunately, this same reasoning keeps many normie retailers from accumulating Bitcoin. We can’t change human perception.
4) Have you ever watched a boring, overrated movie like Killers of the Flower Moon and wondered how people thought it was entertaining? Memecoins are the opposite. If a conventionally intelligent person thinks an idea is stupid in less than a second, it indicates an opportunity for a good memecoin. They are pure anti-establishment.
5) The market has chosen memecoins, AI, and RWA tokens to be this cycle's big winners. Gaming, metaverse, NFTs, and DeFi shared the last cycle. None of those withstood the bear market, so now it’s time to move on to greener pastures. Who wants to provide liquidity for the bagholders from the last cycle?
6) Influencers are in on it. In the last cycle, vaporware projects would bribe influencers to garner attention, letting the influencers and teams dump on their followers. Now, influencers can pump memecoins and get an allocation from memecoin teams. It’s the same narrative but with a different investment category. However, memecoins are significantly more viral and simultaneously pumped by multiple influencers.
7) There are fewer choices. For crypto degens, there are thousands of memecoins to choose from. Meanwhile, the normie retail investor isn’t going to go on Pump.fun and try to get a win. They will buy a blue chip that is easy to purchase that their friend tells them about. Having a basket of 10 primary memecoins removes much of the distraction and decision-making from the rest of the crypto market.
8) Crypto natives can make money on them and not be the exit liquidity. Look at any newly launched token and see a depressing chart with few buyers and many sellers. Even influencers who bought these new coins at presale can’t stop the bleeding. Why pump a coin that needs to make money for the team, VCs, presale investors, influencers, and everybody else before you when you can pump a memecoin that only needs to pay the team first?
9) Whitepapers. A memecoin typically has a one-page whitepaper, a Twitter, and a Telegram account. Memecoins are anti-establishment of the anti-establishment (crypto).
10) Lack of patience. Our attention spans are shortening collectively. Memecoins allow people to churn in and out of speculation frequently. Constant churning applies to the crypto degens and the normie retail crowd. Why own Bitcoin, which might triple in three years, when you can buy a memecoin that can triple in less than one day?
This information should not be taken as investment advice. Memecoins are incredibly volatile and I am no more qualified to give financial advice than to dance like a ballerina. Digital assets like crypto and NFTs involve risk, so you should always perform due diligence before investing.
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Try Not To Get Burnt
Like NFTs rekt so many crypto investors last cycle, memecoins will break countless hearts this crypto cycle. I am confident that a few memecoins will make it through this cycle just as Doge, Shiba, and Floki made it through the last cycle, but a vast majority will end up rugging the people holding the coins when the music stops.
What I am trying to say is make hay while the sun shines. Memecoins are a popularity contest, but they can be extremely profitable with good timing and a bit of luck. Nothing causes more FOMO than a massively green chart. And memecoins appeal to our innate greed and fear of loss.
In the past, I frowned upon memecoins. However, I’ve realized that 99% of crypto projects are BS, and the 1% legit fail to gain much attention. Therefore, my strategy is to invest in some blue-chip memecoins, gamble with some lower market cap coins, and avoid being the last bagholder.
Do you agree that memecoins will play a big role in this crypto cycle? Am I over-hyping their needless existence? Do you buy the rhetoric that they are cultural coins, or do you see them as another money-grab opportunity? Do you disagree or have anything you’d like to add? If so, please share in the comments.
If you liked this article, please clap for it. If you are a memecoin investor, clap for it to get more people to consider speculating on memecoins.
This information should not be taken as investment advice. Memecoins are incredibly volatile and I am no more qualified to give financial advice than to dance like a ballerina. Digital assets like crypto and NFTs involve risk, so you should always perform due diligence before investing.
Follow me on Twitter.
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