This week, the cryptocurrency market has continued to decline, with most token prices continuing to plummet. Even newly launched projects like ZK Sync and LayerZero have not been able to escape the downward trend. The biggest opportunity and hotspot in the market is 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 on the chain. According to data from node service provider syndica, 92% of transactions on Raydium, Solana’s top decentralized exchange, come from Memecoins.
In this week’s Cryptosnap Dr.DODO, we will introduce several types of Memecoins through a few famous Memecoins in this bull market.
Meme Tokens:
BOME/SLERF/MEW/MANEKI…
I classify various tokens from large pools as Meme Tokens. They are characterized by large pools and rapid price increases, making them the most likely targets for overnight wealth accumulation. These projects have a large capacity for investment and high multipliers. However, their high market value often makes it difficult for people to enter the market. When participating in such projects, several points should be noted:
1. Project Background: Take BOME as an example. The founder, Darkfarms, is a well-known artist in the crypto community, making the possibility of a rug pull low.
2. Pool Lock/Burn: Besides being a target for market makers, large pools are often used for scams that completely drain the liquidity pool. For example, SLERF burned tens of millions of liquidity pool tokens, which was one of the reasons for the initial FOMO.
3. Trading Volume: Trading volume represents the market’s sentiment towards a project. Specific data can be used to gauge the project’s popularity.
4. Market Sentiment: This refers to the overall market trend, which can be used to judge a project’s potential high point.
I believe that this type of Meme Token experiences rapid price increases but usually only has one wave of market movement. After that, the trend often differs from the investment logic of Memecoins where small capital can generate large returns. Due to the nature of large pools, it is not recommended to participate in these projects again with small capital, as the returns may not be favorable.
Hot Trend Tokens:
GME/BODEN/TREMP/DJT/NCAT…
Hot Trend Tokens are related to popular figures like Elon Musk, Donald Trump, or Roaring Kitty, and their corresponding meme tokens can be found on the blockchain. However, the prices of these meme tokens can be influenced by various news events. Therefore, it is crucial to track news and make corresponding trading decisions when participating in these types of meme tokens. For example, DJT, a popular meme token on-chain this week, attracted many people due to rumors of Barron Trump’s involvement and the presence of a large pool. However, it also experienced a sharp drop due to the exposure of insider information by famous crypto traders such as Zach XBT and GCR. Similarly, $GME experienced a frenzy of speculation due to Roaring Kitty’s return post, but soon after, it plummeted due to the lack of substance in Roaring Kitty’s live stream.
Community Tokens:
POPCAT/MICHI/SC
I believe that community tokens, such as those related to cats and dogs, have the highest potential for returns but also the highest failure rate among meme tokens. The high potential for returns is because these tokens often have enough time at the bottom to accumulate cheap chips. However, their lack of scarcity makes them prone to failure. The first important point is whether the token’s avatar catches people’s attention. But more importantly, the community atmosphere is crucial. When participating in these projects, it is essential to observe whether there are enough enthusiastic community members actively involved in promotion. Additionally, observing the volume of the token on Twitter can help make trading judgments, such as whether there is a decrease or stagnation in the token’s buzz.
In addition, I believe that community meme coins gather retail consensus slowly when the market environment is good, driving prices to rise slowly. However, when the market environment is bad, due to factors such as holding numerous chips, the price can quickly plummet.
Celebrity Tokens:
MOTHER/RNT/PAJAMES
Celebrity tokens have recently become popular on the SOL chain, but most celebrities are not interested in managing tokens for the long term. Many of them are short-lived phenomena. However, if a celebrity with a massive following outside the crypto community is willing to manage the token, there is great potential. Currently, the most successful celebrity token is $MOTHER. Rapper Iggy Azalea, with her millions of fans, promoted her own token and actively interacted with crypto community members and influencers, which is why the hype has continued for so long. In my opinion, when it comes to participating in celebrity tokens, it is best to observe for a few days and determine whether the celebrity is genuinely committed to long-term management before joining, as this increases the chances of success.
Others:
WEN/BONK/WIF…
Apart from the above-mentioned types of hot meme tokens, there are many other types as well. For example, $WEN, launched by the Jupiter team, and $Bonk, rumored to be launched by the Solana Foundation to revitalize Solana, have reached such high market valuations due to the involvement of reputable teams. Due to its launch during a period of uncertainty, $Bonk had a low starting point but a high multiplier. On the other hand, $WEN was born during the heated Solana FOMO period and had already reached high expectations before going live. Additionally, $WIF, the largest market cap and a benchmark for Solana Memecoins, is the most difficult to categorize. Although it was initially a community token, it later received attention from capital, making it the most powerful Memecoin in this bull market.
My Opinion:
Considering that the Solana Memecoin market is currently experiencing an avalanche period, I do not recommend participating in any trades at this time. Instead, it is a good phase to evaluate projects, especially community tokens and celebrity tokens. It is important to carefully observe the community consensus during the market downturn for community tokens and whether the celebrity is actively involved in the token for celebrity tokens.
I believe that Memecoins are not suitable for left-side trading or bottom-fishing strategies because they do not have fundamental value to support their bottom prices. They rely more on attention economics, where they can attract more attention as prices rise. The more suitable approach is to select projects with a solid foundation and add them to the watchlist, waiting for the right moment to join when the wind picks up.
