When larger assets like smart contract platforms experience significant growth, it often triggers explosive increases in memecoins. These memecoins, being at the extreme speculative end, tend to face market downturns sooner, serving as an early warning for the broader market. Knowing these fairly predictable role memecoins play in crypto cycles, one can encode a simple heuristic-based memecoin investing strategy that outreturns a market-cap-weighted basket of smart contract platforms by a factor of 28, or, if optimizing for memecoin investments on a velocity-weighted-bases, by a factor of 87.
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