Cryptocurrency market continues to slump this week, with most token prices continuing to fall. Even newly launched coins like ZK Sync and LayerZero are not spared from the downward trend. The biggest opportunities and hotspots in the market are still Memecoins, with Solana Memecoin being the craziest among them. With low transaction costs and the emergence of Pump.fun, Solana has become the most active gambling platform. According to data from node service provider Syndica, 92% of transactions on Solana’s top DEX, Raydium, are from Memecoins.
In this week’s Cryptosnap Dr. DODO, we will introduce several types of Memecoins based on this bull market cycle.
Meme Coins:
House Coin (BOME), Slurf Coin (SLERF), Mew Coin (MEW), Maneki Coin (MANEKI), etc.
These coins are categorized as “House Coins” because they have large pools and experience rapid price increases. They offer the opportunity to get rich overnight, with high potential returns and large positions that can be invested. However, due to their sudden increase in market value, it can be difficult to enter the market. When participating in such projects, it is important to consider the following:
– Project background: For example, BOME’s founder, Darkfarms, is a well-known artist in the cryptocurrency industry, making the likelihood of a rug pull low.
– Liquidity pool lock/burn: Large pools can also be scams that completely drain the liquidity. SLERF, for instance, burned millions of dollars worth of liquidity to create initial FOMO.
– Trading volume: Trading volume represents market sentiment towards the project, and it can be used to gauge the project’s popularity.
– Market sentiment: This refers to the overall market trend and can be used to identify potential highs for the project.
It is important to note that House Coins tend to experience a fast rally but usually only have one wave of market movement. After that, their trajectory often differs from that of Memecoins, which involve smaller investments with higher returns. Due to the large pool size, it is not recommended to participate in House Coins multiple times if you have invested a small amount of capital.
Hot Topic Coins:
GameStop (GME), Boden (BODEN), Tremp (TREMP), Donald J. Trump (DJT), Non-Fungible Art Token (NCAT), etc.
Hot Topic Coins are related to current events and can be based on popular figures such as Elon Musk, Donald Trump, or Roaring Kitty. These coins often experience price fluctuations due to various news events. Therefore, tracking news and making corresponding trading decisions are crucial when participating in these types of Memecoins. For example, DJT, the most popular coin on the chain this week, experienced a surge in interest due to rumors of Donald Trump’s son, Barron Trump, participating in it. However, it also suffered a sharp drop due to the exposure of its insider information by famous crypto Twitter (CT) accounts such as Zach XBT and GCR. Similarly, $GME experienced a frenzy of speculation due to Roaring Kitty’s return post, but soon plummeted due to the lack of substance in Roaring Kitty’s live stream video.
Community Coins:
PopCat (POPCAT), Michi Coin (MICHI), SC Coin (SC), etc.
Community coins, such as those related to cats and dogs, have the highest potential for returns but also the highest failure rate among Memecoins. They offer high returns because these tokens often have a long accumulation period with cheap chips. However, due to their relatively low scarcity, they are also prone to failure. The first thing to consider is whether the token’s avatar catches people’s attention. More importantly, the community atmosphere plays a crucial role. When participating in these projects, it is important to observe whether there are enough enthusiastic community members actively promoting the coin and to monitor the token’s volume on Twitter to assess trading opportunities. Additionally, in a bullish market, community-based Memecoins slowly gather retail consensus, which drives the price up. However, in a bearish market, they can quickly plummet due to factors such as a large number of distributed chips.
Celebrity Coins:
Mother Coin (MOTHER), RNT Coin (RNT), PAJAMES Coin (PAJAMES), etc.
Celebrity Coins have recently gained popularity on the Solana blockchain. However, most celebrity coins are short-lived and not intended for long-term management. Many of them are “one-hit wonders.” However, if a celebrity with a significant following outside the crypto industry is willing to actively manage the token, the coin has great potential. Currently, the most successful celebrity coin is $MOTHER, launched by rapper Iggy Azalea, who has millions of fans and actively interacts with crypto Twitter (CT) and community members, which has contributed to the token’s prolonged popularity. In my opinion, when it comes to participating in celebrity coins, it is important to observe for a few days and determine whether the celebrity is committed to long-term management before making a decision to increase the chances of success.
Others:
WEN Coin (WEN), Bonk Coin (BONK), WIF Coin (WIF), etc.
Apart from the mentioned types of Memecoins, there are many other types of hot Memecoins. For example, $WEN, launched by the Jupiter team, or $Bonk, rumored to have been launched by the Solana Foundation to revitalize Solana. These coins have reached high market values due to the involvement of reputable teams. $Bonk had a low starting point and high multiplier due to its launch during a period of low market activity. However, $WEN was born during the hot Solana FOMO period and had already reached high expectations before its launch. Additionally, $WIF, the largest market cap and Solana Memecoin benchmark among Solana Memecoins, is the most difficult to categorize. It started as a community coin but later received attention from capital, making it the strongest Memecoin of this bull market.
My Perspective:
Given the current slump in the Solana Memecoin market, I do not recommend participating in any trades at the moment. Instead, it is a good time to discern between projects, especially community coins and celebrity coins. It is important to closely observe the community consensus during the downward trend and whether the community members remain steadfast. For celebrity coins, it is important to observe the celebrity’s long-term commitment before joining to increase the chances of success.
I believe Memecoins are not suitable for left-hand trading or bottom-fishing strategies. Memecoins do not have fundamental value to sustain bottom prices. Instead, they rely on attention economics to attract more attention as prices rise. The best approach is to select projects with strong fundamentals and add them to the watchlist, waiting to join when the winds pick up.
