Author: Crypto, Distilled
Compiled by: TechFlow
Meme is the world’s fastest Ponzi scheme. Whether you like Dogecoin or Catcoin (or neither), it’s hard to deny.
However, after a few big winners like $WIF and $PEPE, you might be wondering:
Is the carnival coming to an end, or is it just beginning?
What is a Meme?
The word meme was coined by Richard Dawkins in his 1976 book The Selfish Gene.
It comes from the Greek word "mimema", which means "imitation".
A meme is an idea, behavior, or style that spreads through a culture through imitation.
ideas, behaviors, styles, or usages that spread from one person to another in a culture
Meme Virality:
From politics and sports to entertainment and finance, memes are going viral.
Due to the speculative nature of altcoins, their synergy with cryptocurrencies is very strong.
The core of Meme:
Memes have always been an integral part of the blood of cryptocurrency enthusiasts.
They shape the culture of the entire cryptocurrency space.
From "WAGMI" and "Wen Lambo" to "Choose Rich" and "In it for the tech"...
Meme is the core of Crypto Twitter (CT).
Speed up point:
Despite its deep historical roots, 2021 marks a turning point.
COVID-19, $GME, and massive money printing created the perfect storm for meme mania.
From joke to giant:
Fast forward to 2024, and Memecoin continues to explode.
For the first time, meme coins have become the most popular category of cryptocurrency.
The meme accounts for approximately 23% of @CoinMarketCap page views, exceeding 25 million in June alone.
The fastest Ponzi scheme:
Ironically, at a time when the market was expected to mature, memes flourished.
We have $BTC ETFs and new technology, but investors still choose the dark side.
As GCR puts it, “It’s a long-term bet on human desperation, greed, and depravity.”
@GCRClassic: "It is often too expensive for the average person to fly to Macau or Las Vegas. Decentralized casinos and decentralized Ponzi schemes are always the quickest option when there is a lot of spare money and macro risk is high. I am long-term bullish on humans being desperate, greedy, depraved, lonely, and trapped in the metaverse."
From Joke to Fortune:
The top memes not only dominate in terms of attention, but also in terms of revenue.
Meme coin is the highest gaining sector, up 72% year to date (sector weighted average).
(Thanks to @artemis__xyz)
Leading Ecosystem:
Most of the leading meme coins are on $SOL or $ETH.
However, in this cycle, the $SOL ecosystem has received more attention than $ETH.
For example: $WIF and $BONK.
Thinking leadership:
Since October 2023, $SOL and its Meme Coin ecosystem has been gaining momentum.
Although $SOL has not yet surpassed $ETH in market capitalization, it is already on par with $ETH in Google search interest.
"Casino" chain:
In the $SOL ecosystem, Meme coins symbolize the crazy pursuit of speculative assets.
The massive influx of liquidity has given $SOL a casino-like atmosphere.
Participants appear to favor riskier assets over more traditional, slower-moving projects. (Courtesy of @CoinMarketCap)
What drives the meme craze?
Retail investors value quick gains more than venture-backed projects with high fully diluted valuations (FDVs).
Market participants are fatigued due to high project saturation (many projects have high FDV).
This phenomenon is exacerbated by low mainstream adoption and a lack of breakthrough consumer applications.
Meme Coin Black Hole:
According to data from CoinMarketCap, new meme coins are gathering momentum faster than in any previous cycle.
Even within the AI category, many popular projects are “meme-ified” AI tokens.
Memes are like a black hole that is swallowing up all those who are “in it for the sake of technology.”
Dog vs. Cat:
An interesting phenomenon in Meme Coin is the competition between Dogecoin and Catcoin.
Catcoin has outperformed so far this year, but Dogecoin still has a higher market cap.
Yes, this is the current state of cryptocurrency.
(Thanks to @MessariCrypto)
Profiting from Memes:
While many people think of memes as just a lottery, the field is actually much more complex.
Those who excel at spotting cultural trends early on are likely to succeed.
However, without strong trading skills or a solid social network, your odds are slim.
potential risks:
Profiting from Meme Coin relies on the extremely risky “dumber theory”.
Investing enthusiasm can come and go quickly.
For example: the “1000 trillionaire” phenomenon.
Final Thoughts:
While the currencies may change, the lure of getting rich quick never goes away.
Whether you choose to participate in gambling or not, the casino will always continue to operate.
Even if you don’t like memes, it’s good to understand why they’re successful.
