Imagine you take Bitcoin’s (BTC) code, make the block time faster, add a few minor tweaks, and launch a new coin called Litecoin ($LTC). Despite promises for further improvements, you don’t change much after launch. Then, someone else sees this and thinks, “I could create a coin too.” They copy Litecoin’s code, make small changes, randomize the block rewards, and name it Luckycoin. However, people didn’t like this randomized reward system, so the project fails.
Then another person realizes how easy it is to copy code and create a new coin. They take Luckycoin, remove the random rewards, set a fixed reward, and launch it as a joke, calling it $DOGE. Initially, the public wasn’t impressed by this meme coin concept. But Elon Musk said he liked the joke, and that endorsement made DOGE popular, boosting its market cap to $60 billion. DOGE has an unlimited supply, so it could keep growing in the future.
This kickstarted a trend of making tokens by copying. Another developer thought, “Everyone can track each wallet on the blockchain. You can see every transaction ever made.” So they copied BTC’s code to create a coin focused on privacy, naming it $DASH. They added an option for private transactions with an extra fee; otherwise, it worked as a regular, trackable blockchain coin. Then another person thought, “I’ll make a coin with even more privacy.” They copied BTC and DASH to create a fully private coin called Zcash ($ZEC). And so, this chain of copying continued.
Now, people are copying Ethereum (ETH) to create Binance Coin (BNB). Soon, we’ll see copies of Solana (SOL). Copying doesn’t mean a project will fail; if the public finds value, it can succeed. PUMP-FUN, for example, has created a machine for token copying. Ultimately, the crypto market is about hype, not necessarily the tech behind a project. Most traders don’t care about technology as much as hype.
Crypto enthusiasts are eager to fight the VCs (venture capitalists) who often invest in coins before they go public, buying up 10-20% of the supply at a low price and then dumping during the hype. In the 2021 bull run, we saw tokens rise from $0.1 to $10, only to crash back to $0.1. Now, the public doesn’t want to rely on VCs. Some VCs got $TIA tokens for $1M in the early stages and, through staking, now receive $1M in tokens every three days. That kind of return isn’t something regular traders can stomach, which partly explains this meme coin explosion. Previously, one or two meme coins might hit big in a year; now, every day, a new meme coin can reach a $100 million market cap.
So, with meme coins already surging, what’s the strategy? Look for tokens with decentralized holder distribution—top 10 holders with less than 15%—or buy coins trading below their actual market cap (MC). For example, DASH might be priced at $25 but has a true value closer to $32, so it has potential, as long as BTC is on the rise. Seek out undervalued coins and buy them.
Recently, HBAR jumped by 50%. Had I not been busy, I’d have bought it in the first 15 minutes of the pump. Watch for coins in the dip that show a 5-10% pump in the first few minutes, buy them, and sell soon after. This pattern is becoming a daily occurrence. Many Telegram channels offer pump notifications, so activate notifications, and be ready to decide within one minute. However, don’t wait for the third or fourth notification; buy too late, and you’ll likely miss out. Start with small amounts, then increase your stakes if it works
