[Investment logic of memecoin? What is the future trend?]

4. What is the investment logic?

(1) Strong community cohesion and cultural belonging

(2) Scale effect and wealth effect caused by fair mechanism

(3) Unique narrative, highly recognizable image, highly spreadable, a kind of influence with cultural attributes, which will generate huge value and easily go viral, thus driving up prices

For example:

Dogecoin is a Japanese Shiba Inu that has hundreds of millions of fans around the world

The image of PEPE comes from the frog in the comic "Boys Club". Its emoticons are very popular on the Internet and highly recognizable.

5. What is the future trend?

(1) The total market value will continue to expand in the future

Currently, Doge is worth 18.2 billion US dollars, Shib is worth 11.7 billion US dollars, Floki is worth 1.8 billion US dollars, Pepe is worth 5.2 billion US dollars, and other meme coins have a total market value of less than 100 billion US dollars.

It is expected that in the next 2-3 years, the proportion of this sector in the entire cryptocurrency market will increase to more than 10%. There will be unicorns with a single currency market value of more than 100 billion US dollars, and there will be more than 5-10 meme projects with a market value of more than 10 billion US dollars.

(2) Let a hundred flowers bloom and a hundred schools of thought contend. With the continuous upgrading and iteration of blockchain technology and ecology, trading methods are becoming more and more convenient and diverse.

meme1.0 era: DOGE is forked from the Bitcoin code and is derived from the Bitcoin main network technology. It is mainly traded on EX.

meme2.0 era: Ethereum smart contracts such as Shib issue tokens to enter the secondary circulation market.

meme3.0 era: BOME, Slerf, etc. are generated on Solana, mainly on-chain DEX transactions. After achieving AMM liquidity, they will enter EX transactions.

6. What are the risks?

(1) Due to the anonymity, there are many scammers, and it is easy to encounter running away and zeroing, price cliff collapse, etc., causing investors to suffer serious losses.

(2) The price volatility is huge, "sometimes heaven, sometimes hell", which can easily cause investors to suffer huge losses;

(3) It is very dependent on market sentiment and has serious speculative behavior;

(4) It is easy to be manipulated behind the scenes, and malicious manipulation can be used to profit by taking advantage of investor sentiment

(5) After one round, 99% will be abandoned, and the next round will be a new favorite.

After understanding the above, I believe you will make rational investment decisions in your own meme sector.