Over the past weeks, social media platforms have been buzzing with tales of traders who seemingly hit the jackpot by investing in the PEPE meme coin. These stories of overnight success raise an important question: Can meme coins truly be relied upon as a means to accumulate wealth, or are they akin to playing the lottery and relying on luck?
To find the answer, we must explore the diverse strategies employed by various socio-economic classes when engaging with the lottery. The comparison between meme coins and lotteries sheds light on the different perspectives towards wealth accumulation.
Meme coins, for those unfamiliar, are digital currencies inspired by internet memes. Unlike traditional cryptocurrencies, meme coins typically lack practical applications beyond being traded and shared among users. Their value is heavily influenced by social media sentiment and other factors, leading to substantial price swings and the potential for market manipulation. While meme coins carry significant risks, they have amassed a substantial following of individuals who see them as a means of challenging established financial systems and connecting with like-minded communities online.
The PEPE meme coin, in particular, experienced a staggering 9,071% surge in value prior to its listing on Binance, reaching an astounding market capitalization of $1.8 billion. However, cautionary advice is now being shared among traders due to the coin’s recent breach of crucial trend and support levels. Meme coins, especially those developed by anonymous teams, are susceptible to “rug pulls,” where developers abandon the project, leading to a collapse in value. Additionally, price volatility tends to be most pronounced during Asian trading hours.
On the other hand, we have the allure of the lottery, where the promise of instant wealth with minimal effort and investment proves irresistible to many. Despite the astronomical odds of winning a jackpot (1 in 300 million for Powerball), the average player spends close to $200 per year, which accumulates to a significant sum over time. Surprisingly, research suggests that those who fall into the lower socio-economic class tend to play the lottery regardless of the odds, while wealthier individuals only participate when the jackpot offers substantial returns. For the wealthy, a $10 million win may not make a significant impact, but a jackpot exceeding $100 million piques their interest.
What Other Meme Coins Are Making Waves?
The surge in popularity of meme coins can be attributed to various factors, including the growing fascination with cryptocurrencies and the relative ease of creating new digital currencies. Several meme coins have garnered attention for their clever branding and incorporation of popular culture references, which have fueled interest and speculation. The social media-driven aspect of meme culture has also played a significant role, with influencers and online communities endorsing their preferred coins and spreading the word to their followers.
This has created a frenzied environment of buying and selling, as investors aim to capitalize on the hype and take advantage of the unpredictability of these highly speculative assets.
Here are several meme coins that have gained popularity and attention:
- AiDoge: AiDoge positions itself as a new web3 platform for meme creation and sharing using AI technology. The project has gained significant attention, with its presale reportedly raising over $5.5 million.
- Ordi: Ordi is a meme coin paying homage to the Ordinals protocol, which is currently the largest with a value of $400 million.
- BOB: BOB is an AI bot that provides tweet summaries to Twitter users who reply with “@ExplainThisBob”. Its programming includes automatic responses to tweets made by Elon Musk, which have earned BOB praise from Musk himself and garnered a large following of several thousand users.
- MONG: MONG is a recently launched meme cryptocurrency project in 2023. What sets MONG Coin apart from other meme cryptocurrencies is its association with an established NFT collection called MONGS NFT, which was created in January 2022. The collection features 6,943 NFTs, with each NFT portraying a distinct mungo (mongoose).
- TURBO: TURBO is an innovative cryptocurrency with a unique token economy that aims to become the meme coin of the future. Unless many other meme coins, TURBO is developed almost exclusively using ChatGPT.
- LADYS: Milady Meme Coin has its native token called LADYS, which can be utilized to pay for online goods and services. The token’s value received a lot of attention after Elon Musk tweeted about the Milady NFT meme. Currently, the market capitalization of this meme token has exceeded $100 million.
- WOJAK: WOJAK is a new ERC-20 token, inspired by the famous Wojak meme. Since its inception, the token has gained massive momentum and at its peak, it has surged over 1000%.
- Floki: Floki is a cryptocurrency that initially started as a meme coin inspired by the dog of Elon Musk. However, it has now transformed into a complete Web3 ecosystem that comprises NFTs, DeFi, a metaverse, and prepaid gift cards for Visa and Mastercard. The project has gained a lot of attention as it was recently added to the list of cryptocurrencies on Binance.
- XRdoge: XRdoge is a meme coin on the XRP ledger. Similar to Floki, they are not a new meme coin. The reason why they are mentioned is that I felt that XRP needs to have their own doge and have some fun. The fun elements could bring more hype to the Ripple ecosystem.
The newer memes that are trying to ride on the PEPE waves, like BIBI, BOBO, PEPO, and PIPI would need to find their own niche very soon. Other Chinese-themed coins like Pogai and LowB got to gather more mandarin speaking communities to join in the fun. If you are a Cate, SquidGrow, TSUKA or Renewable coin and not part of the frog or dog craze, you just got to wait for your turn to shine.
It is worth mentioning that while newer meme coins have recently gained significant popularity, older meme coins such as Doge, Shiba Inu, Pitbull, RichQuack, Saitama, Baby Doge, Safemoon continue to thrive by actively maintaining their community and working on their projects. This demonstrates their commitment to longevity and a sustained presence in the ever-changing world of cryptocurrency. The level of dedication and perseverance displayed by these coins is a positive indication for the meme coin industry, as it suggests that some of these coins may have staying power beyond just a momentary hype cycle. The continued relevance and demand for these older meme coins highlight their ability to maintain a loyal following and leave a lasting impact, even in the midst of emerging trends and shifting market conditions.
In conclusion
It should be noted, however, that meme coins are known for their strong online communities, driven by hype and speculation, and may not necessarily have serious real-world use cases or underlying technology.
Like what I have mentioned on Twitter: “Dear #memecoins, if you are popular you can talk about utility, payment, games etc. If you are not popular and nearing being forgotten, you need to be fun…”
The underlying for its success would still be community and having fun together. If a meme coin survives the initial stages and gains support from its community, its games, NFTs, or even metaverse would have a much higher chance of success. Their new revenue streams would be vital for them to survive in the bear market and beyond.
It’s essential to consider the risks and rewards of any investment opportunity carefully. While the promise of quick wealth might be tempting, long-term, low-risk investments are the safest and most reliable way to accumulate wealth.
Source: https://www.benzinga.com/23/05/32628423/exploring-the-meme-coin-craze-risk-hype-and-online-communities
Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.
Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.
An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.
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