A successful memecoin often has the ability to lead the community based on a unique story. The story can be as simple as a dog, a cat, a frog, but it can also have a deeper meaning.
First, we need to agree that cryptocurrency is a risky investment market with many hidden risks, especially with memecoins. It takes less than a minute for a normal user to create a memecoin at almost zero cost. More than 99% of memecoins will soon disappear forever, so if you want to explore this group, you need to allocate capital reasonably so as not to affect your financial plan.
- Choose a playing style
Choosing a playing style is the first thing I want to mention, you need to position yourself based on knowledge, experience, experience and financial resources to choose the right style.
There are hundreds of thousands of memecoins in the market with diverse segments and ecosystems, while each person’s human resources, financial resources and time are limited, so you cannot spread them across all the pieces.
If you are a person who prefers safety, the group of OG, large cap memecoins is the right choice. This group has gone through more than one full cycle with ups and downs and still exists at this time. It has built a strong community and is proven not to die in the downtrend, so the safety will be higher than other groups. Coins in this group also have high liquidity and have been listed on many large exchanges, so they are also suitable for those who want to invest with large capital.
If you trade a little safety for higher profit expectations, the New Generation Memecoin group is a relatively good choice. This group is the memecoins that emerged after the end of the 2021-2022 growth cycle. Compared to young, healthy and vigorous men, this group has achieved impressive growth and has always dominated the market throughout the current cycle. The capitalization of this group is still only around the average level combined with the hype community foundation, so the opportunity for strong growth is still there, but the thing is, having not experienced a full cycle, I am not sure whether we will see these names in the next growth season.
Continuing to gradually increase the level of risk in exchange for profit expectations, we move down to the low-cap memecoin group. This group is suitable for those who only spend a small amount of capital and are willing to lose in exchange for the opportunity to break out. Memecoins in this group require strong analytical skills and experience because the rate of rugpull and abandonment of this group’s projects is very high. Projects in this group often have a marketcap ranging from 1 – 10 million USD.
If you are an experienced person and a heavy degen, you may be interested in the micro-cap group, with a capitalization of only a few tens of thousands to less than 1 million USD. You will even invest in newly released projects. The rugpull rate of this group is extremely high, but in return, the X100, X1000 achievement bets will come from here. Investing in this group is like lottery tickets, because even experienced people cannot analyze it all.
In short, position yourself to choose one or a few memecoin groups that suit your investment style.
In addition, choosing a blockchain ecosystem is also a point worth noting. Up to now, Ethereum has always been the ecosystem that nurtures the most successful large projects, almost everything launched on Ethereum has a higher chance of success than other ecosystems. Memecoins on Ethereum are also more supported by influential people like Elon Musk.
This cycle we have seen the memecoin movement rise on a series of other blockchains, but most of them have been short-lived. If you are a degenerate, there is nothing to discuss, but if you are not able to follow the market closely, in my opinion, you only need to care about the three ecosystems Ethereum, Solana and Bitcoin.
- Community is power
Unlike tech-coin, memecoin has no whitepaper, no product or team to analyze, the value of a memecoin is created from the power of the community.
A successful memecoin often has the ability to lead the community based on a unique story. The story can be as simple as a dog, a cat, a frog, but it can also have a deeper meaning.
For example, with DOGE, its original story was a joke to mock crypto, but that humor was accepted and quickly spread. Later, other keywords related to Dogecoin were gradually positioned as “first memecoin”, “elon musk doge father” and its crazy growth made DOGE the face of the memecoin market for many years. When mentioning memecoin, people remember DOGE first.
With PEPE, the image of a green frog symbolizes growth and leap with the slogan “The most memeable memecoin in existence”. PEPE aims to be a popular meme for the entire crypto market and it has done it (meme, not just memecoin). Pepe has become the most popular meme in the crypto market, wherever there is a meme, there is Pepe. If when mentioning memecoin, people immediately think of DOGE, then when mentioning the meme PEPE will be the first name on the list.
With SPX, it is a story of crypto flip stocks, y2k style reminiscent of the early days of the internet. The slogan “Believe in something” reminds the community to stop trading, just buy and believe.
Or BITCOIN (HarryPotterObamaSonic10Inu) is a coin with a “psychotic” style that shows the level of “trash” right in its name, the ticker $BITCOIN is used as a message “imagine you missed Bitcoin twice”.
Another example is MEW, right in the name of the project “cat in a dogs world” tells the story it wants to convey. The blockchain world has too many dogs, so MEW was born with the mission to become a counterweight and fight against dog dominance.
Or GIGA, a memecoin with a story that symbolizes masculinity, inspiring people to exercise and build a body. Or NOMNOM, a coin with the image of a gluttonous hamster, eating anything it sees, nomnom everywhere, nomnom eat all the tings!.
When you dig deeper into the analysis of memecoin, you will see that good memecoins are not memes at all, they all have stories behind them to lead the community. Of course, growth and profit are still the big motivations for clicking buy, but it cannot be denied that culture is what brings them together to build that common ideal.
That’s right, memecoin does what few other projects can do, which is to create a culture, a belief that urges individuals with the same ideals to want to join. They feel happy to belong to that community, they work for free to promote the development of the project.
In this section, I want to emphasize that story, culture and community are extremely important for a memecoin.
Feeling – something built on knowledge, experience and market experience over the years plays a very important role in this research step. Because you will need to feel which stories are trash, which stories have potential.
Finally, look for projects with quality communities, members who work for free for the project. If the project is not yet developed but has a good enough story, suitable enough for you, then “work for your bag”, you are the first individuals to build the foundation for that community. A coin cannot grow sustainably if only the project team tries to communicate, tries to book media, even if it grows, in the end it is still just pumping and dumping. The community is the strength.
- Development history
The more ups and downs a coin goes through in history without dying, the stronger it is and the more opportunities it has to continue growing in the future.
In the general development process, ups and downs are inevitable for all projects. When reaching certain milestones, a group of old people and weak hands will leave, creating a decline, which is also a good time for new people to join and continue building.
The more big declines with a long accumulation period below, followed by big growth waves again, the stronger the project becomes strong.
According to Murad – one of the social media influencers who strongly supports memecoin, there should be at least 3 to 4 big bearish waves with a decrease of more than -70%, and the development history of the project should be more than 6 months.
- Necessary tools
Liquidity Pool (LP)
LP status is one of the most important criteria to check when playing memecoin. Normally, for projects deployed through meme launchpad platforms like pumpfun, LP has been automatically burned and no one can rugpull. But with other free memecoins, you need to carefully check this item, to avoid the case that one morning when you wake up, all liquidity has been withdrawn.
This information can be found on the interface page of Dexscreener, Dextools, it is the icon right next to the Liquidity information. If you are tech-savvy, you can check directly on blockchain explorer platforms.
There are usually two ways to deal with LP tokens. One is to burn them by sending them to dead addresses, the other is to lock them on token locking platforms. Personally, I always prioritize projects that burn 100% LP.
If the project is locked, it is necessary to check when it will be unlocked, and when it is locked, it will bear a risk from the locking unit. If their platform is somehow attacked, all locked tokens will be at risk of liquidity withdrawal, so it is best to prioritize projects that burn LPs.
Token Distribution
Checking the token distribution is also one of the basic skills when investing in memecoin. This action helps you grasp the proportion of wallet groups, whether there is a wallet cluster holding a large amount of tokens or not, thereby assessing the decentralization of that coin.
Bubblemaps and Holderscan are two tools that help you in this matter. Bubblemaps displays a visual map of the top wallet addresses that own tokens and the connections between those wallets.
The fewer wallet address clusters control a large amount of supply, the more decentralized the token is.
While Bubblemaps provides a visual interface, Holderscan provides more analysis on token distribution and other relationships.
However, this data is only relative and stops at providing information, because professional market makers know this well.
If you are able to use in-depth onchain analysis tools, you will find more insights such as the correlation between token distribution and wallet age, the number of transactions of each wallet, from which you know which wallet group is holding how much % of tokens.
- Other tools
Maestro Bot
The oldest Telegram trading bot. Maestro Bot has been operating long before the Telegram Bot trend exploded with the issuance of tokens, but it seems that Maestro is not interested in issuing its own coin. Maestro Bot works well on most EVM and non-EVM networks (Ethereum, Base, Arbitrum, Solana, Tron, Ton, …).
Photon Trading Bot
High-speed memecoin trading platform right on the web interface. The special thing about Photon is that it both provides in-depth filters and allows instant buying and selling on the same interface, making buying and selling quick and convenient.
Unibot
Unibot is a popular Telegram Bot because of its friendly and easy-to-use interface. Unibot supports many EVM chains and Solana.
Banana Gun Bot
Another popular Telegram Bot that many people choose.
SolTradingBot
SolTradingBot is a Telegram Bot dedicated to the Solana network.
Mevx
Provides a set of tools including Telegram Bot connected to Webapp, helping users easily research and quickly perform buying and selling operations right on the web interface.
- Conclusion
Memecoin is emerging stronger than ever, perhaps during this growth cycle, meme will always dominate and lead the market. In the end, memecoin will not disappear, but as a rule, an over-inflated balloon will eventually collapse.
Investing in memecoin is an extremely risky business, so I still want to reiterate that capital management is a must. I hope this article helps you in your research.
