Hellow Guys
Good afternoon to everyone,
Greeting to #leofinance community
WHAT ARE MEME COINS AND WHY DO THEY EXIST?
You may not hear about the quality projects such as Solana, Kadena, Algorand, Presearch, or BAT but you must be aware of Doge, Shiba Inu, Akita Inu, Safemoon kind of meme coins because the later needs more publicity and advertisement than the formal one. Do you know Why? Because third-class things always need more advertising campaigns than a quality project. Have you ever seen Lamborgini's advertisement?
The same applies to the cryptocurrency world where more new useless projects (as a meme or NFT) are coming forward than the quality projects, the main reason for cryptocurrency being most volatile. I call the shit projects. Despite knowing everything about shit coins (useless), more projects are still being added to the blockchain world and many smart people (early birds) are waiting for such a project to launch thier shit coin and grab it at an early age 10x or 100x or 1000x profit. This gigantic gain grabs the attention of the retail investor and they buy it from the early bird at a high price. later, everyone will start selling shitcoins causing 99% of crashes. For example, Safemoon had touched an all-time high of 0.000012$, and now it is traded at 0.0000019$, 81% low from ATH.
Keep in mind that developers are making money out of thin air. Suppose any project has a total of 1 million tokens. (which has no value so far = zero market cap) and then you/people come from somewhere and buy 10 tokens for 10$ from them making a total market cap of 1 million. And then more people will buy it out of greediness to earn from it.
I feel that Meme coins will not exist by 2025 because most of the projects have no use cases and are made out of fun only. Involvement of Some big names such as Elon musk's tweets, compel people to buy such coming out of FOMO. In March 2021, when I was new to the cryptocurrency world, the cryptocurrency market was at an ATH high and so was some Shitcoins (meme coins). By now most of the quality coins recovered well but some meme (shit) coins disappeared and some merely exist as it is. I will show you how these meme coins are for the opportunist and not for the investors.
| SHIT TOKEN | ALL-TIME HIGH ($) | PRICE NOW ($) | DOWN BY % FROM ATF |
|---|---|---|---|
| NFT ART | 1.8 x 10-8 | 1.8 x 10-9 | - 89% |
| NCAT | 1.1 x 10-7 | 2.2 x 10-9 | - 98% |
| AQUAGOAT | 2.8 x 10-8 | 1.4 x 10-8 | - 52% |
| PINKMOON | 1.4 x 10-9 | 2.9 x 10-8 | - 95% |
| DRAGONMUSK | 2.5 x 10-9 | ZERO | - 100% |
However, there are some great meme coins, which comes out as a great success due to the strong community and mostly backed by some well-known personality. For example, Doge, Shiba Inu and Floki Inu often skyrocket when Elon tweets something about it whereas Safemoon skyrocketed 4.3k % because it was in a bull market at the time (March 2021) and the community is still active. I feel that all the meme coins will vanish from the market by 2025, until and unless a particular meme coin finds a sole use case of it.
| MEME TOKEN | ALL-TIME LOW ($) | PRICE NOW ($) | UP FROM ATL % |
|---|---|---|---|
| DOGE | 8.6 x 10-5 | 0.24 | + 280896 % |
| SHIBA INU | 5.6 x 10-11 | 2.4 x 10-5 | + 49180499% |
| FLOKI INU | 8.4 x 10-8 | 7.2 x 10-5 | + 84890% |
| SAFEMOON | 4.4x 10-8 | 2.1 x 10-6 | + 4385% |
The final word is there is nothing like an overnight success for any meme coin. To grow like a hell, the project team has to constantly update the investor about their progress and their futuristic plan. Shiba Inu, Safemoon and Floki inu grow and will grow (if dev. find a strong use case) because the team behind them are working hard to find a use case for the respective tokens.
DO WE REALLY NEED MEME TOKENS?
As discussed above, I think that there should be a use case of any coin/token be it meme coin/shitcoin/mainstream coin. Today Ehtereum is 909989 % up from its inception (and not risky as meme/shit coins) just because it has helped developers to build Defi, web3.0 website and Play to earn NFT games atop of it. BNB is more than 1233048 % up from its inception because it facilitates most of the work cheaply that ethereum blockchain.
| COIN | ALL-TIME LOW ($) | PRICE NOW ($) | UP FROM ATL % | USECASE? |
|---|---|---|---|---|
| ETHER | 0.43 | 3959 | + 909989 % | YES |
| BNB | 0.039 | 490 | + 1233048 % | YES |
| SOL | 0.50 | 160 | + 32116 % | YES |
| LUNA | 0.12 | 39 | + 31914% | YES |
The point is most people are not at all interested in studying the white paper of any project and their futuristic goal, they just follow some whales who manipulate the market drastically. Naive investors think that getting billions of tokens (shit tokens) for a dollar will make them millionaires when the token hits 1$ but they have no idea that these tokens were generated on the top foreign blockchain by a single click with no use cases and are not worth investing 1 $.
Of course, there are some exceptions, such as Shiba inu and safemoon, despite being meme coin, the team behind them are working hard to develop wallets, swapping, running NFT games. But still expecting Shib and safemoon hit 1$ is not possible, not for at least until 2030 provided the project team decide to burn the major amount of coins.
I think any team creating a meme token or coin, should have at least a futuristic goal about use cases of the token. Shiba inu and Safemoon team had no idea initially about where the coin will be used but after huge community support, they managed to find out at least a mere use-case.
In short, no coin/token should be made/generated without any strong use case (DEX, staking, Liquidity provider, NFT in-game token). I don't understand why people need meme coins (with a huge market cap) to entertain themselves, watch Mr Bean instead. ha ha ha
IF I HAD TO CHOOSE ANY ONE MEME TOKEN WHAT PARAMETER I WOULD CHECK BEFORE INVESTING
Now, I would never invest in meme coins after losing a couple of dollars when I was a newbie dreaming to become an overnight millionaire through investing in meme coins. Out of curiosity, I would go for the Safemoon and Shiba Inu meme coin. As both the coin are grown amazingly, I would prefer to invest for the long term instead of trading with it. As a part of this blog, I will do some fundamental study on safemoon and will try to convince you that why I have preferred Safemoon over Shiba Inu and dogecoin.
1. The Market Cap
The market cap of all the three well-known meme coins is shown below. You can see that the market cap of the safemoon is the lowest of the Doge and Shiba Inu coin. The most positive thing is that one receives a safemoon as part of tokenomics when someone sells their safemoon token. Safemoon tokenomics include Reflection, LP acquisition and Burn simultaneously. This tokenomics will make safemoon tokens scarce as time goes. In future, there will be a very less circulating supply of safemoon which makes it a prime candidate above all for the future.
| COIN | Marketcap ($) | CIRCULATING SUPPLY ($) | BURNING RATE? | TOKNOMICS |
|---|---|---|---|---|
| Doge | 32B | 0.13 T | NONE | NO |
| Shiba Inu | 13 B | 497 T | NONE | NO |
| Safemoon | 1.1B | 573 T | YES | YES |
2. Community
Community support is the backbone of any meme coin because, without community support, no meme coin ever succeeded so far. In terms of Twitter following, Dogecoin has 2.2 B, Shiba has 1.2 and safemoon has at least 1 B following. This trend is quite similar to the Market cap trend, which says the more support a meme coin received from the community more the meme coin will grow, in future as well.
3. Reflection
Reflection is very unique tokenomics a safe moon have, whereas Dogecoin or Shiba inu has no such initiative to encourage their holder to hold for the long term. However, the reflection of the safemoon token can only be received if you brought safemoon from DEX using the non-custodial wallet.
In short, Safemoon tokenomics punish the seller and rewards the long term holder, which looks like quite a great mechanism as compared to Doge and Shiba inu token.
One more thing is doge and Shiba inu is already listed on well know CEx such as Binance, WazirX but Safemoon is not listed in such well-known CEX which will possibly show some bull run at the time of listing on well-known CEX.
WHY I BELIEVE THAT SAFEMOON HAS QUITE GREAT POTENTIAL TO GROW IN FUTURE
Out of the three best meme-coin, I would go for Safemoon for long term investment because many upcoming updates will surely make Safemoon into the top 10 lists in upcoming years. Several things should be discussed with you guys to convince you that how a safemoon can make it into the top 10 cryptocurrency list in a few upcoming years.
1. Reflection, LP Acquisition and Burn
Reflection, Reflection, LP Acquisition and Burn mechanism will be a catalyst for people to hold safemoon for years. A holder like me will constantly receive Safemoon tokens if someone else will sell their token.
In this way, the total circulating supply will decrease as time goes and that will make the Safemoon token more scarce than today. Due to this unique tokenomics, the investors will be encouraged to hold safemoon for the long term.
2. Roadmaps & Products
Safemoon has recently launched their own non-custodial wallet mobile app (android/IOS) which will be useful while dealing with any Decentralized exchanges and web 3.0 apps. Many things are coming on the way, such as safemoon wallet 2.0, safemoon Hard wallet and safemoon centralized exchanges (CEX).
3. Safemoon Swap
As the Shiba swap has thier own Shiba swap where you can swap your token with any ERC-20 token. Same as them, the Safemoon team has developed a safemoon Swap where you can swap Any BSC token with each other. The work is in the progress and for now, only Safemoon to wBNB swapping is available. Once this swapping start functioning fully, safemoon will grow the same as Shiba inu grew at the time of launching Shiba swap,
4. Price Analysis
As we have seen in the above table, safemoon is trading at 2.1 x 10-6 at a whopping 81% low than all-time high 2.1 x 10-5 . As you can see the Safemoon team is working for the development of non-custodial wallets, hard, wallets, listing to other well-known CEX, launching safemoon exchange and tokenomics will boost the price of safemoon. I believe you can buy safemoon, now at a discounted price.
5. Active Team on social media - strong community support
If you look at the number of followers of the safemoon Twitter handle, you will get an idea of how the safemoon team is active and how thier followers are supporting the Safemoon project. There are 1B followers of Safemoon on Twitter, numbers say it all.
6. Huge scope of listing on well-known CEX & DEX
Safemoon is so far listed on DEX pancakeswap and some other less known CEX such as Hotbit and Gat.io. In future, safemoon may get listed on well-known CEX such as Binance, Coinbase, FTX and many more. we all know how the news of listing any coin/token on well-known CEX can skyrocket the price of any token, be it meme toke, shit coin, or fundamentally strong project coin.
CONCLUSION
All and above, I can say that most of the time meme coins (shit coins) are useless and have a lack of use cases. Any token without any use case should be considered as shit coin, I believe. However, Dogecoin has a strong community, I feel there is no use case of dogecoin and so I consider it as s shit coin.
If we talk about Safemoon and Shiba inu, the team behind them are quite active and are under constant progress. From all research I have done today, I have found Safemoon is worth long term investment (if you have no choice), provided the Safemoon team do whatever they have promised over the years. Good luck
