Analysis of Market Logic and Strategy for Meme Coins
In the Meme field, there is a widely circulated saying: "A divine plate must experience multiple rounds of 70% washing." Even the well-known analyst Murad has repeatedly emphasized this point. Many people can describe this phenomenon, but few have deeply analyzed its essence. Here is its core logic:
Sufficient Turnover and Market Stability
Under the push of market makers and market synergy, Meme coins typically undergo multiple rounds of skyrocketing and significant corrections. This model increases the average cost for investors through sufficient turnover, preventing a single large holder's sell-off from triggering a 'stampede-like' collapse (i.e., rapid market decline and panic selling). This is similar to the design logic of PVP plates, where the main responsibility of market makers is to avoid such risks and lay a stable foundation for subsequent price increases.
The Importance of Community Building
The core of Meme coins lies in community power. Whether from the perspective of dissemination effects or the standards for exchanges to list, a Meme coin that does not possess the characteristic of 'backward pickup' is unlikely to form a strong community. Only through continuously attracting new investors can the community's cohesion and influence gradually strengthen.
Investment Strategy Recommendations
An excellent Meme coin project will not hesitate to provide investors with multiple opportunities to 'get on board.' For investors, the key is to closely monitor the Meme coin projects they are optimistic about and decisively make moves at the right time to seize the core cycle of price increases.