With the arrest of Pavel Durov at the Le Bourget Airport in France 2 days ago, the inevitable tank of linked assets followed with both $TON and $NOT seeing sharp declines.
#Ton is approaching the bottom end of its trading band that it’s formed over the last few months. Breaching the bottom end will create new price discovery opportunities and possibly an opportunity for short sellers.
The 4-Hour chart shows some resistance as it’s approaching the bottom end of the band.
Fam, I know that you are all waiting for a sign to jump in but i hope you choose your entry point at the right time because as @Ben Walther always says, wait for Confirmation on the daily chart. Yesterday we got confirmation but it dipped again so wait for double confirmation (2days) Fam… Personally I’m waiting for 2 days confirmation above 61k
I came across this article by @Ben Walther in which he argues that Utility Tokens will outperform Meme coins in the Long Run.
My thoughts on this are as follows: I strongly agree that Utilities will Outperform Memes as suggested. Economic Theory has shown this numerous times with the rare exception of things like Art works.
Another point to consider is that as the cryptocurrency market matures, there is a growing expectation that regulatory scrutiny will increase. Utility tokens, which have a clear purpose and are often tied to the operations of a legitimate project, might be viewed more favorably by regulators compared to meme coins, which could be classified as speculative and high-risk assets.
This increased regulation, which will invariably happen, may lead to a consolidation in the market, where projects with strong fundamentals and clear use cases are more likely to survive and thrive.
Utility tokens that are part of widely adopted platforms or ecosystems may also benefit from “The Network Effect”, where the value of the token increases as more people use the platform. This can lead to sustainable long-term growth. Meme coins, on the other hand, may struggle to maintain value as they rely on continuous social media-driven interest, which can be fickle.
But then again there is also the DEGEN culture 😵💫
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Ben Walther
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4 Scientific-Based Facts Why Utility Tokens Will Outperform Meme Coins In The Next Months
Are you still looking for the next meme coin that'll pump 1000x? Or are you trying to time your entry into one of the meme coins that dominated the first part of the bull market, such as PEPE, BRETT, or FLOKI? If so, you should continue reading. In this article, I put together scientific facts that explain why there is a huge chance that utility tokens will outperform meme coins during the next months. However, before we dive in, there's one important aspect to mention: The article assumes that we will see a continuation of the bull market that leads to a bull run by the end of 2024 or early 2025. Fact 1 — Behavioral Finance & Rational Market Hypothesis Behavioral finance is a vast field with tons of research. However, two very important studies have to be proven right over and over again. Banerjee and others showed in 1992 that early market phases are usually driven more by social influence and hype than by fundamentals. This also applies to the early phase of a bull run. Meme coins typically benefit massively from this psychological phenomenon. However, as markets mature, investors become more rational and start to focus on fundamentals, such as utility and project development (Barberis & Thaler, 2003).As the bull market progresses, more rational investors enter the market. As a result, this typically leads to a shift in focus from speculative assets to those with intrinsic value (Malkiel & Fama, 1970). Fact 2 — Profit-Taking and Capital Rotation You have probably already seen the capital rotation chart that is shared repeatedly on social media. The chart shows a rotation from Bitcoin to Ethereum, to large caps, finally leading to an altseason and meme hype. As simple as the chart is, I think it has many deficits, particularly regarding meme coins. Typically (and similar to this cycle), the pump comes much earlier and struggles at the end. The reason why is based on the Capital Flow Theory: Studies on capital flow dynamics suggest that during profit-taking phases, capital tends to rotate from high-risk, high-reward assets to more stable, fundamentally strong assets (Karolyi & Stulz, 1996). Simply put, investors who made a lot of profits with meme coins in the first part of the cycle will not continue investing in them but switch to utility tokens. Accordingly, utility tokens, which often represent tangible projects or services, are more likely to attract this capital in the latter stages of a bull market. Fact 3 — Shift in Focus from Speculation to Fundamentals With Retail Joining The later phase of a bull market is usually the part when retail jumps in. Initially, retail investors may flock to meme coins due to the allure of quick gains and social media hype. However, as the bull market progresses and these investors gain more experience, there is a documented shift toward assets with more intrinsic value (Grinblatt & Keloharju, 2000). This aligns with the notion that capital eventually rotates into utility tokens as the bull market matures. Lo came to a similar conclusion in his Adaptive Market Hypothesis in 2004: The Adaptive Market Hypothesis (Lo, 2004) posits that investors learn and adapt to changing market conditions. As retail investors accumulate experience and knowledge, their investment preferences evolve from speculative assets like meme coins to those with real utility and stronger fundamentals. Fact 4 — Over-Hype and Market Saturation The massive success of early meme coins in this cycle (PEPE, FLOKI, BRETT, etc.) has led to a massive explosion in the number of meme coins being launched. This phenomenon has been described in financial literature as the "over-hype" or "bandwagon" effect, where the initial success of a few assets leads to a flood of similar offerings, diluting the market concentration (Shiller, 2000; Hong & Stein, 1999). As a result, the pool of available capital is spread thinly across a much larger number of meme coins, making it harder for any single coin to sustain significant gains. This over-saturation also reduces the likelihood of any single meme coin achieving the same level of success as the early pioneers in this bull market. Investors who might have previously funneled large amounts of capital into a few high-performing meme coins are now spreading their investments across many, reducing impact and smaller returns for each coin. What Does This All Mean? While top meme coins like PEPE, Doge, and others will certainly have their moments in the second part of the bull market, their potential to replicate the explosive gains seen earlier is probably limited. The scientific evidence suggests that we won't see a repeat of the meme coin frenzy that dominated the first half of this bull run. The market is saturated with meme coins, and as more emerge, the concentrated capital thins out, reducing the impact of each new project. On the other hand, utility tokens are poised to take center stage as the bull market progresses. The behavioral shift towards fundamentals, driven by more sophisticated and experienced investors—including retail entrants—points to utility tokens as the likely leaders in the next phase. These tokens, backed by real-world applications and intrinsic value, are better positioned to attract capital and deliver sustainable growth. As such, while meme coins may have their moments, the latter half of the bull market will likely be dominated by tokens with genuine utility, reflecting a more mature and rational market environment. 👉 Think this article is valuable? Make sure to share it! 🔥 Check my profile for more free content!
Some great insights on what may be coming for meme coins…
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Ben Walther
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4 Scientific-Based Facts Why Utility Tokens Will Outperform Meme Coins In The Next Months
Are you still looking for the next meme coin that'll pump 1000x? Or are you trying to time your entry into one of the meme coins that dominated the first part of the bull market, such as PEPE, BRETT, or FLOKI? If so, you should continue reading. In this article, I put together scientific facts that explain why there is a huge chance that utility tokens will outperform meme coins during the next months. However, before we dive in, there's one important aspect to mention: The article assumes that we will see a continuation of the bull market that leads to a bull run by the end of 2024 or early 2025. Fact 1 — Behavioral Finance & Rational Market Hypothesis Behavioral finance is a vast field with tons of research. However, two very important studies have to be proven right over and over again. Banerjee and others showed in 1992 that early market phases are usually driven more by social influence and hype than by fundamentals. This also applies to the early phase of a bull run. Meme coins typically benefit massively from this psychological phenomenon. However, as markets mature, investors become more rational and start to focus on fundamentals, such as utility and project development (Barberis & Thaler, 2003).As the bull market progresses, more rational investors enter the market. As a result, this typically leads to a shift in focus from speculative assets to those with intrinsic value (Malkiel & Fama, 1970). Fact 2 — Profit-Taking and Capital Rotation You have probably already seen the capital rotation chart that is shared repeatedly on social media. The chart shows a rotation from Bitcoin to Ethereum, to large caps, finally leading to an altseason and meme hype. As simple as the chart is, I think it has many deficits, particularly regarding meme coins. Typically (and similar to this cycle), the pump comes much earlier and struggles at the end. The reason why is based on the Capital Flow Theory: Studies on capital flow dynamics suggest that during profit-taking phases, capital tends to rotate from high-risk, high-reward assets to more stable, fundamentally strong assets (Karolyi & Stulz, 1996). Simply put, investors who made a lot of profits with meme coins in the first part of the cycle will not continue investing in them but switch to utility tokens. Accordingly, utility tokens, which often represent tangible projects or services, are more likely to attract this capital in the latter stages of a bull market. Fact 3 — Shift in Focus from Speculation to Fundamentals With Retail Joining The later phase of a bull market is usually the part when retail jumps in. Initially, retail investors may flock to meme coins due to the allure of quick gains and social media hype. However, as the bull market progresses and these investors gain more experience, there is a documented shift toward assets with more intrinsic value (Grinblatt & Keloharju, 2000). This aligns with the notion that capital eventually rotates into utility tokens as the bull market matures. Lo came to a similar conclusion in his Adaptive Market Hypothesis in 2004: The Adaptive Market Hypothesis (Lo, 2004) posits that investors learn and adapt to changing market conditions. As retail investors accumulate experience and knowledge, their investment preferences evolve from speculative assets like meme coins to those with real utility and stronger fundamentals. Fact 4 — Over-Hype and Market Saturation The massive success of early meme coins in this cycle (PEPE, FLOKI, BRETT, etc.) has led to a massive explosion in the number of meme coins being launched. This phenomenon has been described in financial literature as the "over-hype" or "bandwagon" effect, where the initial success of a few assets leads to a flood of similar offerings, diluting the market concentration (Shiller, 2000; Hong & Stein, 1999). As a result, the pool of available capital is spread thinly across a much larger number of meme coins, making it harder for any single coin to sustain significant gains. This over-saturation also reduces the likelihood of any single meme coin achieving the same level of success as the early pioneers in this bull market. Investors who might have previously funneled large amounts of capital into a few high-performing meme coins are now spreading their investments across many, reducing impact and smaller returns for each coin. What Does This All Mean? While top meme coins like PEPE, Doge, and others will certainly have their moments in the second part of the bull market, their potential to replicate the explosive gains seen earlier is probably limited. The scientific evidence suggests that we won't see a repeat of the meme coin frenzy that dominated the first half of this bull run. The market is saturated with meme coins, and as more emerge, the concentrated capital thins out, reducing the impact of each new project. On the other hand, utility tokens are poised to take center stage as the bull market progresses. The behavioral shift towards fundamentals, driven by more sophisticated and experienced investors—including retail entrants—points to utility tokens as the likely leaders in the next phase. These tokens, backed by real-world applications and intrinsic value, are better positioned to attract capital and deliver sustainable growth. As such, while meme coins may have their moments, the latter half of the bull market will likely be dominated by tokens with genuine utility, reflecting a more mature and rational market environment. 👉 Think this article is valuable? Make sure to share it! 🔥 Check my profile for more free content!
If you follow #TON you’d have noticed that it’s quietly moved into #9 in market cap. That in itself isn’t astonishing. What’s astonishing is the silence from Binance!
Less Trading and more Hodling. My lesson is that moving your funds around to try catch the next pump is a futile exercise. In fact, it’s probably capital destructive unless if you strike it lucky 🍀. I lost a lot this week chasing pumps and getting dumps.
Those holding people may have escaped the Crush as experienced by other coins. It’s poised to be the next coin to be manipulated. It’s had a nice 23% rise in 24Hours.
When the Politicians get involved, you know things are about to go mainstream
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Binance News
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US Senator Ted Cruz Purchases Bitcoin Mining Machines
According to Odaily, US Senator Ted Cruz has announced his entry into the world of cryptocurrency mining. Cruz revealed that he purchased three Bitcoin mining machines on June 1st and has begun mining operations in the Iraan area of Texas.
The senator's move into Bitcoin mining marks a significant step into the cryptocurrency sector. This development could potentially influence other politicians to consider the benefits and potential of digital currencies. However, it is important to note that this does not necessarily indicate a shift in political stance towards cryptocurrencies.
Cruz's decision to start mining in Texas is noteworthy. Texas has been recognized as a potential hub for cryptocurrency mining due to its abundant supply of renewable energy. The state's favorable regulatory environment for cryptocurrencies could also be a factor in Cruz's decision.
This news comes amid a growing interest in cryptocurrencies among politicians and lawmakers worldwide. As digital currencies continue to gain traction, it is expected that more public figures will show interest in this emerging technology. However, the implications of this trend on the regulatory landscape of cryptocurrencies remain to be seen.
The “Trailing Up” feature in Grid Trading Bots is really great! It effectively allows you to trade beyond the initial range and the market moves higher.
But make sure you keep adequate margin for your Bots.
This is my Lesson for the Week. I’m sad that it happened but happy that I got the lesson.
I went to sleep and woke up 15 minutes after I exceeded my margin balance and the bot had expired. I added margin (post expiry) hoping it’ll turn back but good old Pepe kept going up.
My lesson is simple: Keep adequate Margin on your Grid Trading Bots. Keep feeding your little piggy 🐷 as the market moves.