How do you know that the Crypto Market is about to get silly again? Every cycle has some particularly stupid hype associated with it and the idiots start buying up garbage thinking they’re going to get rich. Last cycle I remember being frustrated at Dogecoin going on a massive tear as the first big Meme Coin...and yet it’s still sitting there as the #7 coin by Market Capitalization years later. Even the blatant rip off Shiba Inu coin is still up at #11 and we have more trash with Pepe right there at #15.
I mean who buys this shit? Are these coins doing anything worthwhile? It’s clearly not about the technology and to me these coins are proof that we’re still in a very immature space and any old trash can get a pump if the “Animal Spirits” decide to get some shits and giggles...
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The latest one to blow my mind is called PNUT. Named after Peanut the Squirrel which was euthanized recently in the US. I mean this thing is just a token on Solana and doesn’t even have it’s own blockchain, but according to Coin Market Cap it already has a Market Capitalization of over 1.8 Billion US Dollars. I mean…what the actual fuck? Is this joke of a token really worth that much? What does it do? Is there a use case?
What irks me the most is that it’s some grubby opportunists who create these Meme Coins and then pump them to idiots who clearly have no idea what they are doing. Meanwhile we have some great crypto projects working on actual solutions to real world problems and trying to add value to the crypto space, yet they can’t catch a bid. To be brutally honest I think this Meme Coin phenomenon makes us all look like fucking idiots and children. We really do have to do better than to be bidding up this trash...
!BEER
I kind of used to think like that as someone who generally looks at fundamentals. However, after 7+ years in crypto and seeing the biggest garbage pump the most (XRP, ADA, DOGE) each an every time, I kind of embraced it and flipped a mental switch as I don't make the rules and memecoins are just what outperforms everything.
If you haven't done so already, I could highly recommend watching Murad talk about the subject ( YouTube Link) which actually puts some sense into memecoins.
I guess when it comes down to pnut, the volume is very high and binance listing it likely made them buy up a large part of the supply to act as a market maker. It also puts them in a position where they can control the price and earn from leverage traders as they know all the positions and can liquidate at will.
The main issue with these memecoins is that it's all fun and games until the music stops and all paper gains are gone. Many of the 200M+ market cap tokens only really have ~1 Million or so in the liquidity pool. That is what happened to GIGA going from 0.065$ to 0.01$ in an instant after 1 holder dumped 3 Million dollars worth of it or so.
I did start a memecoin portfolio around 34 weeks ago slowly cost-averaging my way in and it has by far been the most fun an profitable thing in crypto. I will need to watch out not too see everything evaporate overnight though. High Risk / High Reward I guess. As a sports bettor just looking at the odds understanding the risk it feels like one of the more +EV bets to take which is the only real thing I care about.
Thanks for the link. I did watch it all...
...and I still find the whole thing completely retarded. I have no need, or interest in joining or promoting a cult. I'm not here to be in a tribe or a religion and while I am community focused I am not investing just to be part of a community so I can "belong" somewhere.
Yes, maybe he has a point about alt-coins and the way they have been distributed. But memecoins are not the answer for me.
Yeah, I fully get where you are coming from, and from a fundamental point of view, you are100% right. The question often in crypto though is if you want to be right or if you want to make money. Those for some reason are a completely different thing in this space.
I don't see meme coins as an investment, I see them as a degenerate gamble in the short-mid term that have a certain risk/reward attached to them with insanely good odds. Memes are the new form of casino game with a skill factor attached to them. There will be some big lucky winners, those who get the timing and selections right will also win but the majority in the end will be left crushed as for every winner there will need to be a loser.
What do the "technology coins" do other than promises? To me, 99% of the coins in this market are meme coins. There are probably 20-30 blockchains that are intensely used, but the others are almost useless, so better chose your memes right. I used to hate the AI coins at the beginning of the bull run, then I hated memes(once again) and now I've come to terms that I could make money with this shit. We're far away from a fundamentals driven crypto market.
Yes, a lot of the "technology coins" do under-deliver on promises. That's an issue of competency or even integrity but at least some of them are trying. For this space to evolve the alt-coins need to lift their game, no doubt...but memecoins offer nothing of value to this space. If I want to gamble I'll play poker or go to a casino instead of playing a game of "greater fool" with a memecoin.
It’s always going to be this way. The younger generation who is the market for them will always pump them.
Human nature. Even in the stock market, which has more protections and regulations against this kind of thing, we still see what basically amounts to meme coins. It's a story as old as time. Best just to ignore them. I do own some doge, just because I love the positive attitude of the people in that group. They cheer when the coin goes up in price, and they cheer when it falls. The diehards really appreciate the joke, with their "1 doge = 1 doge" memes and so on. But yeah, I just ignore the rest.
I own a couple of meme tokens. I don't see it any differently than going into the store and buying a lottery ticket. It's a gamble you know you are probably going to lose, but you do it anyway just in case you don't.