What is the logic behind the sudden rise of MEME currency?
Pepe rose another 20% this morning, breaking a new high
Pepe is just like Shib in the last round, it has skyrocketed crazily, and there is no reason, no reason
Recently, I have observed that none of the new coins this year can outperform MEME. Why are retail investors no longer buying fund coins, but running to play with memes?
1. The origin of meme
In the stock market, the earliest origin of meme is the company GameStop, which has doubled again in the past few days.
In 2021, a YouTube blogger named Keith Gill advocated. He believed that GameStop was undervalued and began buying shares and call options in the company in 2019. As the stock price rose, his investment significantly increased in value.
In January 2021, more r/WallStreetBets investors responded to Gill's actions and collectively bought GameStop stock. This caused the stock price to rise sharply, triggering a short squeeze that forced hedge funds to buy back the stock at a higher price to cover their positions, pushing the stock price even higher.
GameStop's stock price peaked at the end of January 2021, reaching $347 per share. The situation attracted widespread media attention and spurred widespread discussion about market dynamics, retail investing, and the power of collective action in the digital age.
The event is seen as a landmark moment that demonstrated the impact of retail investors on financial markets, challenging traditional market dynamics and the dominance of institutional investors.
This movement is known as the earliest start of the stock meme. At that time, the rise in GameStop's stock had the greatest impact on DOGE, which soared 18% in one day.
2. The powerful community energy of meme coins
Dogecoin is one of the most famous meme coins, which started out as a humorous imitation of Bitcoin. But over time, it developed into a cryptocurrency with a large community and real uses. Here are a few key moments of collective strength demonstrated by the Dogecoin community:
Social media influence: Celebrities such as Elon Musk, Snoop Dogg and Gene Simmons mentioned Dogecoin on Twitter, which caused short-term price spikes. Elon Musk in particular is considered a key catalyst for Dogecoin's price movement, with his multiple Dogecoin-related tweets on Twitter triggering price increases.
Charitable Activities and Fund Raising: In 2014, the Dogecoin community funded the Jamaica National Bobsled Team’s participation in the Sochi Winter Olympics by donating tens of thousands of dollars in Dogecoin.In addition, the community raised $30,000 in Dogecoin to help build a well to provide clean water to the Tana River Basin in Kenya.
Community cohesion and market activity: The Dogecoin community is known for its active online presence and continued support for the project. The r/dogecoin forum on Reddit is an active gathering place where members not only share information and experiences, but also organize various activities and promotions to increase the use and circulation of DOGE.
Commercial acceptance: Over time, more and more online merchants and services have begun to accept Dogecoin as a payment method, partly due to the efforts of community members to promote its potential as an effective means of payment.
3. Meme coins have low investment and high returns
High volatility and rapid profit potential: Meme coins show extremely high price fluctuations in a short period of time, providing investors with the opportunity to make huge gains. This high volatility is often driven by social media hype and viral trends, which can lead to rapid increases in value. For retail investors seeking quick profits, these conditions are more attractive than more stable investment options, whose returns may accumulate more slowly.
Influence of social media and popular culture: Meme coins often rely on the endorsement of celebrities and influencers, especially on platforms such as Twitter and Reddit. For example, when a figure like Elon Musk mentions Dogecoin on Twitter, it can immediately cause a large price fluctuation. This direct influence of pop culture makes meme coins particularly attractive to young investors who are active on these platforms and respond to such trends.
4. The fund is too ruthless
In 2018, the ICP token was launched. The valuation of the king project fell from $1,000 to $10 after the launch, a 99% drop after the launch. The only king project that survived with a fundraising of 1 billion is now Polkadot
Except for ICP, most projects now have a valuation of 1 billion, but they are actually useless. They collect money and fall infinitely
Summary
The rise of meme coins reflects retail investors' preference for more transparent and community-driven investment methods. This investment method not only provides potential high returns, but also allows investors to directly participate in market activities and enjoy the fun of investment. The complexity and potential leek-cutting behavior of traditional fund coins have gradually turned retail investors to other more attractive investment options.
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#Meme币你看好哪一个？ #Meme代币 #山寨币热点
