Why do so many ordinary people invest in meme coins? - It's exhilarating.
It is undeniable that investing in meme coins is definitely a gamble, but upon reflection, I find that the gamble makes sense and is even correct because it suits them. Let's imagine, if we are an ordinary person earning 2000 dollars a month, we hear many stories of cryptocurrencies skyrocketing, and we want to join, but which one to invest in? Undoubtedly, I think it's meme coins. The reasons are:
1. Investing 2000 dollars in mainstream coins leads to back-and-forth fluctuations, rising today and falling tomorrow, affecting emotions and earning little money, with a high probability of being stuck. One must know that 99% of the time, the market is consolidating sideways, with real big bull markets only occurring 1% of the time. Moreover, the longer the bear market lasts, the longer the bull market lasts, and vice versa. Retail investors are certainly affected by various news, chasing highs and cutting losses, slowly depleting their principal.
2. True investors earn money in cycles. Build positions in a bear market and wait for a bull market to cash out, then wait for the next bear market. No one can say how long a cycle lasts, but a few years is certain; if an ordinary investor buys in with a 2000 capital and waits a few years for it to double, they surely can't hold on. They came in expecting to get rich and can't accept the mindset, especially since such a long wait is not guaranteed.
3. Investing in meme coins is different. No need for highly specialized knowledge, no need to research projects, just FOMO buy, which is incredibly friendly for ordinary investors. Moreover, the entire investment cycle is greatly shortened; results can be seen in a few weeks, days, or even hours.
Find a '土狗' with big influencers promoting it or one with strong backing; buy in with 200 dollars and wait for 10x or even 100x. If it loses, it goes to zero; if it wins, the principal is recouped, and there’s no need for an intermediary.
The positioning strategy is to pursue 10 times the return with 10 '土狗', and they won't sell even if they earn over 50% in a day. For people with a monthly salary of a few thousand, earning tens of thousands from a project is not a small amount, and the feedback is incredibly fast.
You can't lose much with 1000 bucks, but 1000 bucks can buy an opportunity to realize a dream. That’s their slogan.
4. Every day, dozens or even hundreds of '土狗' (literally 'earth dogs', slang for low-quality coins) launch with the slogan of fair launch, with retail investors in the hundreds of thousands rushing into various projects every day. Many people can't sleep if they don't participate at least once a day, hoping to hit the next babydoge, PEPE, LADYS DOGE, SHIBA, FLOKI, etc.
This thing attracts with those get-rich-quick myths, provides real-time high-frequency feedback, and has peers in groups comforting each other and creating FOMO. At the same time, it allows for small investments to yield large returns, and it truly resonates with the situation of ordinary investors. For example: no need to learn, no effort required, low threshold, quick to start, high returns, quick results, small principal, potential for wealth, and there are cases. It’s too suitable for investors who need to twist screws.
But in essence, it concentrates the money of all participants into the hands of a few. However, they also know which projects are trying to 'cut' them. Cutting is cutting, regardless of who does it. The capital manipulation of emotions to harvest retail investors takes much longer than the '土狗'; the '土狗' just feels good, small investments can multiply several times in a day, then they run away, curse the project team for being idiots, and then accept it happily. When it goes up, they rush in together to FOMO and act like family, demanding quick results with no time to linger; they have to rush to the next one.
5. He who wins the '屌丝' (losers or underdogs) wins the world. Whoever can capture this group of meme players might become the new king of Web3. After all, both billionaires have said that he who wins the memes wins the world. This group is very active and absolutely an opportunity for Web3 entrepreneurs.
6. You must not view the world in the way you think; what you think is just your thought, not the truth of the world. Let us strive together.