Can Meme be popular?

Can a Memecoin be popular? , is a very, very, very important factor in whether we can make a profit during the transaction.

We need to judge whether the "meme" carried by a meme coin has the potential to spread virally, and whether it carries the cultural genes of the crypto market - these are all related to whether there is enough market enthusiasm to support it in the future. The development of this meme coin. Of course, this is a relatively complicated matter, involving many factors such as market conditions, cultural identity, and even trader psychology - but we can still make a preliminary analysis of the vast number of Memecoins in the market from some observable dimensions. filter.

Does Memecoin have a unique value proposition or mechanism design? Is it gimmicky enough?

The birth of a meme coin can be simply for fun, or as we mentioned in, to create a new community belief or the native culture of the crypto market, so as to achieve a certain goal. a common goal.

It is important to be fresh and interesting. If the same meme spawns multiple meme coins, just focus on the first one. The meme currency track also has its own law of marginal benefit: the same meme is not very interesting if it is speculated over and over again - such as most dogs except Dogecoin, such as most frogs except Pepe. The meme currency track initially formed a large scale because of its subversive and innovative nature. Here, mechanical imitation is meaningless.

Creating a stimulating community culture is also a way to become popular.

In addition to the Cult DAO we mentioned in the first section, let’s take another example: OlympusDAO. For the first time, OlympusDAO proposed the community belief of (3,3): as long as you buy it, we are all Ohmie, this project has unlimited possibilities, and we can all make a lot of money. Sounds too simple and crude, right? But it is indeed feasible at the mechanical level, and it is indeed innovative enough in terms of inciting emotions, so not only was it successful, it even caused a wave of memes about "(X,X)" in the encryption market.

Whether Meme has the cultural attributes of the encryption market ?

Interesting memes in the context of Web 2.0 may not be popular in the encryption market.

For example, compared to the HarryPotterObamaSonic10Inu, which is very native to Crypto, the Cotai coin derived from the current movie is not as popular in the crypto market, and its audience is relatively limited - why do you say this?

It's simple. The meme "Cotaicoin" itself is not a native meme of the crypto market, but is a meme derived from a Chinese commercial movie. Therefore, the only people that can be obtained by Get are users in the Chinese circle - and they must be the group of people who have watched the movie or heard about it. In other words, the vast majority of crypto market users outside this range cannot get this Meme.

What about HarryPotterObamaSonic10Inu? Just naming the token BITCOIN is abstract enough. Its long name, stylized official website display and other designs all reveal a crazy sense of humor - which can be easily The low-threshold nature of pine that makes people feel interesting is an important part of the cultural gene of the encryption market.

Call back: The goal of Dogecoin, the leader of meme coins, at the beginning of its establishment was to build "a cryptocurrency that is easier to obtain, more practical, and more interesting". This is also the development of the meme currency field. An enduring pursuit to this day.

Is Meme’s audience broad enough? Do you have the basis for virality?

Others may not be willing to accompany you on memes that you think are of high quality.

Let’s still take the Kotai coin mentioned above as a comparison case. As a meme currency derived from film and television works, Squid Game (SQUID) has gained more market recognition due to the global popularity of the TV series "Squid Game" and has gained wider recognition in the encryption market. audience. Although SQUID eventually had a vicious incident in which the project team ran away, it needs to be acknowledged that the token's trading data has been performing well after it was launched and before the incident, with the highest price once exceeding $2,000.

For individual users, it is difficult to judge the size of the audience. Perhaps we can use a simple and crude method of identification: tell this Meme to your friends (or send a link to an encrypted user group you participate in) to see if they find it interesting and are willing to take it further. Spread this Meme to others.

Is the community active?

The development of meme coins relies heavily on the power of the community. The strong community power comes from the quality of the "memes" we mentioned earlier on the one hand, and the operating status of the project community on the other. We can roughly observe it from the following aspects.

What platforms does the community cover? What is the scale?

Generally speaking, meme coin projects will have a Twitter account dedicated to the entire project. In addition, the more frequent content releases and wider social platform coverage mean that the development team has spent more effort on community building, and it also means that more potential users can be radiated by this project. .

The size of social accounts is also a dimension we can refer to: think about a project with a Twitter account with only 9 followers and an account with 9,999 followers. Which one will you know first? Woolen cloth? An account with only 0 likes and 0 retweets for each tweet, and an account with at least ten replies from different IDs for each tweet. Which account do you think has a more active community?

Is the amount of social interaction active enough? Is there high-quality interaction that can continue to create memes and make memes to maintain the vitality of the community?

In addition to observing the number of active users, when browsing the meme currency community, we should pay attention to whether there is sustained, original, and high-quality interactive content. If there is, it means that there are enthusiastic participants in the community (of course, sometimes it may be a request from the project party, so you need to identify it), and they are willing to invest time and energy into the project. This type of content mainly includes some secondary creations of the project party’s Meme.

If a community only has repetitive and lack of fresh content for a long time, such as continuous hard advertising to encourage everyone to rush, then it may not have much investment appeal.

Is community management and feedback prompt and professional?

A good meme coin community is not just about its size and activity. How the project party handles and responds to questions, criticisms and suggestions from the community is equally important. If you see that the management team has a positive attitude towards user feedback and is able to solve problems quickly, it means that they value the community and may be more concerned about the long-term healthy development of the project.

Is there any debate within the community about the progress of the project?

This may sound counter-intuitive. But in fact, the occasional discussion and debate within the community about the future direction of the project is actually a very positive sign. This means that there are community members who really care about the development of the project and think deeply about it. Of course, this discussion should be constructive, not malicious, negative, or meaningless.

Is the development team attentive

What is the strength of the team? Anonymous? Are project materials fully prepared?

An experienced development team means the project is more likely to follow its roadmap and vision, rather than simply cut leeks.

If the development team is not anonymous and publicly discloses member information, in addition to allowing us to better understand the strength of the team, this is also a credit endorsement to some extent.

And if it is an anonymous team, we can also judge whether the project party is sincerely creating trouble or just wants to cut it and run away by browsing the information provided by the development team. Sources of information that can be referenced include but are not limited to the project's official website, white paper (if any), roadmap (if any), token economic design (if any), community accounts, etc. If the information is fully prepared, it can be judged that the project party is relatively careful. After all, time costs are also costs. Even if it is a lie, it should be more sincere.

Is the team actively promoting marketing?

We can judge how the team's publicity and marketing work is progressing by observing whether the project has external cooperation. Cooperation with leading projects and KOLs will help the project become popular—but this kind of cooperation may also become a red flag.

Cite a very typical example although it is not a meme coin. At the beginning of this year, Celestial (CELT) used the gimmick of "OKX's biological son" and used a large group of KOLs to help place orders, attracting a lot of attention in the market. When it was later revealed that these KOLs had actually received money (it was said to be 400U per person), the currency price collapsed, and the market has not yet restored trust in this group of KOLs, this project, or even OKX.

So, when you see a meme currency team actively marketing , we also need to pay attention to screening to see who are in Pump, whether these people have a history of cutting leeks, and whether they and the project party belong to a community of interests.

Is the market performance up to standard

Market data is also a dimension we can use to screen meme coins.

In most cases, new meme coins are traded on decentralized exchanges, and we can make better investment decisions with the help of data websites like DEXTools. For example, for a meme currency traded on Uniswap, we can observe the liquidity of the currency on the data website before buying and selling. If there is a large increase or decrease in the pool, the price of the currency will be very high for token holders. Large changes are possible, and for users who are prepared to trade, they are likely to face higher slippage.

What is slippage? Why does it occur? What impact does it have on investors? Please refer to the entry: What is Slippage

In addition, market value is also an indicator that can be referenced.

Based on our observation of a large number of meme coins, if the market is too big, retail investors’ entry into the market is meaningless and the profit margin is small; if the market is too small, retail investors who enter the market easily will be treated as retail investors. Relatively speaking, projects with a market value of $1M to $5M are relatively safe investment targets; and for some early meme currency projects with relatively active trading volumes, if their market value is still relatively small (for example, only a few dozen million), that might be worth a shot.