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Meme coins: More than just a joke, a guide for investors

Meme coins: More than just a joke, a guide for investors

The world of cryptocurrency is wild. It’s full of crazy ideas, high risk, and yes, even some laughs. Lately, meme coins, digital currencies based on internet jokes and pop culture have been all the rage. They’ve drawn in investors with their wild price swings and passionate online communities.

Dogecoin, the Shiba Inu dog that started it all, might have begun as a lighthearted jab at Bitcoin, but some meme coins have skyrocketed in value. This leaves many wondering: how do you invest in this wacky but risky corner of the crypto market?

The truth is, there’s no guaranteed way to win with meme coins. Their value depends on a weird mix of things, so the usual ways of judging investments don’t apply as much here. A strong community and lots of trading can be good signs, but you need to look deeper when it comes to these crypto jokesters. Here are some key things to consider, along with a healthy dose of caution:

Looking beyond the hype: A strong community

A big and enthusiastic online following on Reddit, Discord, or Telegram can be a good thing but don’t just look at the surface. Here’s what you really need to see:

  • Real talk, not just memes: A good community talks about the memecoin’s future plans, how it might be used for more than just laughs, and how it might work with other projects. Look for people who genuinely care about the coin’s future, not just those mindlessly cheering it on.
  • Coders on the case: A dedicated team actively working on the tech behind the meme coin is a good sign. Look for frequent updates, code posted on platforms like Github, and clear ways to talk to the developers.
  • Keeping things clean: A well-moderated online community helps get rid of negativity, false information, and scams where people try to pump up the price and then dump their coins for a quick profit. Look for active moderators who keep the conversation healthy.

Trading volume: A double-edged sword

Lots of trading means there’s a lot of interest in the meme coin, which can make the price go up in the short term. But be careful:

  • Fake pumps: Beware of sudden spikes in trading that come out of nowhere. These could be the work of “whales” (people with huge amounts of coins) trying to drive the price up so they can sell for a quick profit.
  • Slow and steady wins the race: Look for trading that gradually increases over time. This suggests real growth, not just a temporary burst of excitement.
  • Big exchanges are good: Being on well-known cryptocurrency exchanges makes the meme coin more visible and easier to trade, which can lead to higher trading volume.

Beyond the basics: The x-factors

While a strong community and active trading are important, there are other things that can affect a meme coin’s success:

  • Celebrity tweets: A tweet from a big name like Elon Musk can send a meme coin’s price through the roof (remember Dogecoin?). However, relying on celebrities is risky because their interest can fade fast. Ideally, the celebrity actually holds and believes in the meme coin.
  • Real-world use: Memecoins that have a real-world purpose, like being used in online games or making payments, are more likely to stick around for the long haul than those that are just hype.
  • Fear of missing out (FOMO): This is when people buy something because they’re scared they’ll be left behind if they don’t. Be careful of buying sprees fueled by FOMO, and always do your own research before investing. We’ve seen this happen a lot with meme coins on Solana lately. Hopefully, they’ll show more stable growth later this year.

Laughter is great, but don’t invest based on it

Memecoins can be a fun and interesting part of the crypto world. They create a sense of community and offer the chance to make a lot of money (or lose it all). But if you only invest in them because they’re funny or because there’s a lot of buzz online, you’re setting yourself up for disaster.

By looking at data like how engaged the community is, trading volume, and other important factors, you can approach meme coins with a bit more caution and maybe even some success (without the tears).

Remember, a good meme might make you laugh, but it shouldn’t be the only reason you invest your hard-earned money. And hey, maybe someday we’ll even get that Dogecoin ETF!

 

Source: https://e27.co/meme-coins-more-than-just-a-joke-a-guide-for-investors-20240708/

 

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”.

www.anndy.com
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Ethereum ETF: Investors Wait For May 23 Full of FUD

Ethereum ETF: Investors Wait For May 23 Full of FUD

May 23, 2024 is a key date for Ethereum (ETH) investors across the world. On this day, the U.S. Securities and Exchanges Commission (SEC) will announce its verdict on VanEck’s spot ETH exchange traded funds (ETF) application.

A denial of VanEck’s spot ETH ETF application will likely mean that similar applications from Ark Investment, Grayscale, Franklin Templeton, Invesco Galaxy, and BlackRock will also be rejected later in the year.

An approval from the SEC will likely spark a rally in ETH prices — similar to the ETF-supported Bitcoin (BTC) bull run we saw earlier in 2024.

Key Takeaways

  • VanEck is the first of many spot ETH ETF applicants.
  • The legal status of ETH as a commodity or security continues to be a hot topic of debate.
  • Bitcoin maxi Michael Saylor says altcoins will never get spot ETFs and commodity status.
  • Anndy Lian says ETF rejection could lead to short-term ETH price volatility and decrease in price.
  • Markus Thielen is comfortable holding a short position in ETH.

Pessimism Lingers over SEC Approval for Spot Ethereum ETF

The current mood regarding the launch of spot ETH ETFs in the U.S. is largely pessimistic.

The meeting between the SEC and spot ETH ETF applicants has been “one-sided” so far, insiders told Reuters. According to those who participated in the discussions, the SEC has not discussed “substantive details about the proposed products” nor asked issuers about concerns like they generally do when ETF applications are filed.

Crypto market observers will know that dealing with crypto skeptic SEC chair Gary Gensler is never a straightforward task. Even the recently approved spot BTC ETFs had to endure rejections of over 20 applications from the SEC between 2018 and 2023.

Given the fact that VanEck’s spot ETH ETF application is the first of its kind, CEO Jan van Eck expressed his pessimism at the Paris Blockchain Week crypto event, saying:

“We were the first to file as well for Ethereum in the U.S., and we and Cathy Wood (CEO of Ark Invest), are kind of the first in line for May, I guess, to probably be rejected.”

The Legal Status of ETH Hinders ETF Hopes

Additionally, the legal status of ETH continues to be a hot topic of debate. Despite the initial ETF denials, bitcoin never faced questions on its status as a commodity.

Anndy Lian, a governmental blockchain advisor and expert, told Techopedia:

“BTC has been generally recognized as a commodity by various regulatory bodies, including the CFTC. However, the SEC has not provided a clear stance on ETH’s classification, and recent comments by SEC Chair Gary Gensler have not explicitly categorized ETH as a commodity, which adds to the uncertainty.”

Adding to the fear, uncertainty and doubt was Bitcoin maximalist and co-founder of MicroStrategy, Michael Saylor, who said that it will soon be “very clear” that Ethereum is deemed a security not a commodity when the spot ETH ETF gets rejected in May 2024.

“After that you are going to see that Ethereum, BNB, Solana, Ripple, Cardano – everything down the stack – is just a crypto asset security unregistered. None of them will ever be wrapped by a spot ETF,” Saylor added.

 

“Wen Spot ETH ETF?”

While the growing consensus suggests that VanEck’s application will get rejected on May 23, 2024, industry insiders believe that a spot ETH ETF will eventually be approved later.

We look at the long road to the approval of spot BTC ETF as our reference.

Before its approval in January 2024, the SEC rejected every application placed before it. It was only when crypto fund manager Grayscale won a lawsuit against the SEC that spot BTC ETFs were finally approved in the U.S.

In their petition, Grayscale had argued that the regulation and surveillance that BTC futures ETF traded under were proof that spot BTC ETFs can be traded without fraud and manipulation.

Now market experts believe that the spot ETH ETFs will have to go down the same route to gain SEC approval — litigation.

“The template is likely to be similar to Bitcoin: with futures-based Ethereum ETFs already approved, the SEC (if it denies the approval of spot Ethereum ETFs) is likely to face a legal challenge and eventually lose,” said JPMorgan analysts in a report, as reported by The Block.

What Next for ETH?

Short-term Price Volatility

The market had hoped that positive developments on the spot ETH ETF front would be a major catalyst for ETH prices in 2024.

But now, dashed hopes of ETH ETF approvals coming as early as May 2024 has resulted in bearish ETH price movement (-24%) over the last two months, as of May 10, 2024.

With ETH continuing to underperform large-cap peers such as BTC, Solana (SOL) and BNB in 2024, the second-largest cryptocurrency will have to look for other market catalysts as it plays catch up.

“A rejection could lead to short-term price volatility and possibly a decrease in price as the market adjusts to the news,”  Lian told Techopedia.

Lian added:

“Even if the SEC rejects the spot ETH ETF, Ethereum may not run out of market catalysts. Other potential catalysts for a bull run could include technological advancements, increased adoption, further integration into DeFi, RWA, and the broader crypto market dynamics.”

ETH is the ‘Basket Case of 2024’

Elsewhere, Markus Thielen, founder of 10x Research, called Ethereum the “basket case” of this crypto cycle.

Thielen wrote in an email note to investors that this research firm was “very bullish” on Ethereum earlier in the year, but their view turned bearish when they noticed a sharp decline in Ethereum gas fees that “signaled (near) zero demand for transactions with ETH.”

Thielen also added falling staking yield (2.9% on Lido at the time of writing) and higher on-chain Treasury yields (5.1%) will result in less demand for ETH as “more people realize this.”

“Right now, we would be more comfortable holding a short position in ETH than a long one in BTC as Ethereum’s fundamentals are fragile, which is not yet reflected in ETH prices,” said Thielen.

The Bottom Line

The U.S. SEC under Chair Gensler is known for its hardball approach towards the crypto industry. The securities watchdog has filed multiple lawsuits against prominent crypto companies and personalities including CZ, Binance, Coinbase, Kraken, and Uniswap, over the past year.

Just like Grayscale’s lawsuit, which paved the way for spot BTC ETFs in the US, maybe only a mirrored approach can get spot ETH ETFs across the finish line in 2024.

 

Source: https://www.techopedia.com/ethereum-etf-decision

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”.

www.anndy.com
j j j

$PEPE Leads Meme Сoin Frenzy as Investors Search for the Next DOGE

$PEPE Leads Meme Сoin Frenzy as Investors Search for the Next DOGE

Additional Insights

 

 

Ethereum-based meme coin PEPE surged over 150% in the last week of February 2024 to lead a meme coin frenzy as fear-of-missing-out (FOMO) trading kicked in after bellwether Bitcoin (BTC) neared all-time highs.

In this article, we talk about the PEPE token price, analyze the ongoing meme coin frenzy, understand why people invest in meme coins, and ask experts how to find the “next DOGE.”

Key Takeaways

  • PEPE outperforms older rivals DOGE, SHIB, and BONK.
  • 2023-created meme coins like Solana’s WIF and Donald Trump-themed TRUMP posted outsized gains.
  • Whales began taking PEPE profits as one whale converted their position from PEPE to SHIB.
  • Social forces and attempts to find the next 100x meme coin fuel the market frenzy.
  • Crypto expert Anndy Lian shares methodology to “find the next DOGE.”
Finding the Next Dogecoin
Table of Contents

The Latest Price Analysis: PEPE Outperforms Popular DOGE and SHIB

On February 28, 2024, the PEPE crypto price rose to $0.00000362, its highest since May 2023. Pepe the Frog-inspired meme coin regained its billion-dollar market cap for the first time since its debut. Only Dogecoin (DOGE), Shiba Inu (SHIB), and Bonk (BONK) had a higher market cap than PEPE at the time of writing.

This week, PEPE has become the top performer among the biggest meme coin names. The three dog-themed meme coins DOGE, SHIB, and BONK posted gains of 50%, 45%, and 74% in the last seven days, respectively – as of February 29, 2024 – only to be trumped by PEPE, which rose over 150% in the same period.

PEPE is a newer meme coin compared to DOGE and SHIB. PEPE debuted less than 12 months ago, in late April 2023, while DOGE is over ten years old, and SHIB came to prominence in the 2020-2021 bull cycle.

The freshness of PEPE certainly plays a part in its outperformance against the old dogs. Supporting this thesis is the explosion in the price of meme coins that debuted in 2023 and 2024.

Take Solana’s new meme coin darling, for example. Dogwifhat (WIF) is one of the hottest new cryptos in town, which has gained nearly 400% since its December 2023 debut and over 150% in the last seven days as of February 29, 2024.

Another 2023-launched meme coin that has outperformed its peers is a Donald Trump-themed crypto called MAGA (TRUMP). The TRUMP meme coin has ballooned nearly 3,000% since the start of 2024.

However, there were warning signs that PEPE price movement was getting overheated. Blockchain analytics firm Lookonchain revealed that a whale sold all of their 1.9 trillion PEPE tokens on Binance for a cool $3.49 million profit on February 29, 2024. The whale later changed his position from PEPE to SHIB – the latter has been underperforming PEPE.

 

Meme Coin Frenzy Takes Over 2024 Crypto Bull Run

In this section, we explain meme coin investing through the following points:

1. Meme Coin Degens Do Not Care About Utility or Fundamentals

For an outsider, the price movement of meme coins tends to make zero sense. Fundamental analysts are often baffled by the large sums of money invested in these crypto tokens with zero utility.

Non-crypto-natives should understand that crypto degens rarely look for utility or strong fundamentals. They want to find the next Dogecoin to possibly 10x-100x their crypto investment, well knowing the high volatility and risks involved.

 

2. Crypto Traders Seek Outperformance in Bull Markets

Battle-hardened crypto natives tend to invest in cryptocurrencies through bear markets, making them well-prepared to take hefty profits early when bull markets return. In search of market outperformance, experienced traders have shown a tendency to shift funds out of large market cap coins like BTC, which tend to lead crypto bull runs, to smaller market cap tokens that follow.

As quoted in Techopedia’s Bitcoin bull run 2024 article, crypto hedge fund Pantera Capital said in a report:

“While one of the highest sources of alpha has historically come from a perfectly timed rotation from Bitcoin into altcoins as phase 2 commences, that relationship won’t necessarily always hold true, nor is timing that rotation perfectly a reality for any trader.”

The meme coin frenzy that we are witnessing at the moment is an indicator that traders are now looking to altcoins for “alpha” as Bitcoin nears all-time highs.

3. The Importance of Social Forces in Meme Coin Investing

Social forces play an incredibly important role in driving meme coin price gains. Meme coins are inspired by internet memes, jokes, and satire. They bank on community participation, humor, and virality to attract followers and investors.

Elon Musk’s ‘comeback’ in the game could add flames to the meme coin frenzy.

 

Top meme coins like DOGE, SHIB, and PEPE have loyal followers who enjoy sparkling conversations about their beloved meme coins on social media platforms like Discord and X.

This vibrant social buzz tends to attract newcomers, many of whom end up swapping their fiat for meme coins.

Anndy Lian, an intergovernmental blockchain expert, told Techopedia: “Meme coins can create a sense of community and belonging among their fans, who often use memes and jokes to communicate and promote their favorite coins.”

“Social forces play a crucial role in meme coin investing, as they can generate demand, influence sentiment, and create network effects for these coins.”

Finding the Next Dogecoin

New meme coins may come and go, but none has been able to usurp the king of meme coins – DOGE. The Elon Musk-endorsed token is the ninth biggest crypto in the world with a market cap of over $18.64 billion. At the time of writing, Dogecoin price stood at $0.13, having returned a whopping 23,200% since its debut in December 2013, CoinMarketCap data showed.

In this section, we talk to crypto expert Anndy Lian on how to find the next DOGE.

“Investors should look at the next DOGE in a “fun” manner. Personally, I hunt for them on X (formerly known as Twitter). This is the same place where I spotted $RATS, $FLOKI, $WIF, $GROK, and many more.”

Investors should look for the following traits when evaluating the potential of meme coins:

  1. Catchy and memorable name, logo, and theme, based on a popular or trending meme.
  2. Strong and engaged community that is active on social media, sharing memes, jokes, and news about their coin.
  3. Supportive and influential network of core community/team members or celebrity endorsements (e.g., Musk and DOGE) that can boost a coin’s visibility and credibility.
  4. Clear and fair tokenomics.

The Bottom Line

Meme coin is an interesting sector to uncover. The best place to discover and analyze the social fever created by meme coins is on X. There, you will find opinions about meme coins from incredibly passionate community members as well as rational crypto traders.

However, we want to highlight that meme coins are highly volatile and risky cryptocurrencies. Most meme coin projects enjoy a short period of fame and may become irrelevant after the market loses interest in them.

 

Source: https://www.techopedia.com/pepe-leads-meme-coin-frenzy-as-investors-search-for-the-next-dogecoin

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”.

www.anndy.com
j j j