In-Depth Analysis of Memecoin: From a Joke Product to a 100 Billion Market Capitalization

Overview

1. With Bitcoin breaking the $100,000 mark, Memecoin is ushering in a new wave of popularity.

2. Memecoin originated from the monetization of Meme culture, with DOGE pioneering the intention of being straightforward, humorous, and grassroots.

3. Memecoin has gradually evolved into a medium for expressing support and belief.

4. With the improvement of infrastructure, the number of Memecoins has surged and is also showing new development trends.

5. Investing in Memecoins requires a comprehensive consideration of factors such as narrative, community, marketing, risk, and market performance.

Introduction

Memecoin, as a unique phenomenon in Web3, transforms internet culture into digital assets, creating astonishing market capitalization. In 2024, Bitcoin will break $100,000, and Memecoin will spark a carnival of symbols.

Data shows that Memecoins have performed exceptionally well this year, with the total market capitalization growing from ten billion dollars at the beginning of the year to over 139 billion dollars. Ten Memecoins have joined the one billion dollar market capitalization club, with some projects achieving remarkable growth in just a few days.

The public chain ecosystem is also undergoing transformation due to Memecoins. Solana and Base have become the focus of investors, with a significant increase in activity. However, Memecoins remain controversial; on one hand, they represent opportunities for wealth and a spirit of rebellion, while on the other hand, they are seen as speculative bubbles lacking technological utility.

This article will outline the development stages of Memecoin, analyze its duality, and discuss how to identify quality projects.

The Development Stages of Memecoin

Phase 1: Black humor represented by DOGE

DOGE pioneered the Memecoin culture, embodying straightforwardness, humor, and grassroots characteristics. Founded in 2013 by two engineers, it combined the Shiba Inu meme with cryptocurrency. DOGE quickly gained popularity through community dissemination and received support from celebrities such as Elon Musk.

Characteristics of early Memecoins:

• The theme is animals, mostly cats and dogs.
• Charity is the original intention
• Focus on black humor, relying on community dissemination
• Mainly issued on Ethereum

Phase 2: Web3 Cultural Expression Carrier

Memecoin themes are becoming more diverse, including celebrities, politics, emojis, and more. They are gradually becoming a medium for expressing support and belief. Solana has become the main issuance platform.

Mental Memecoin:

• BONK: Revitalizing the Solana ecosystem
• BOME: Eternalizing Meme Culture on the Blockchain

ICON-type Memecoin:

• Political figures related: TRUMP, MAGA, etc.
• Influencer related: Roaring Kitty, Murad, etc.

Phase 3: New Mode of Memecoin

With the rise of issuance platforms, Memecoins are showing two trends:

1. The extremely sinking Memecoin market: lower issuance thresholds, a surge in quantity but uneven quality.
2. Combine with new narratives: Try to give applications value, such as integration with AI, etc.

The Dual Nature of Memecoins

Anti-Seriousness and the Dissolution of Authority vs Technological Nihilism

• Memecoin embodies deconstructionism, dissolving authority.
• But it also raises concerns about Web3 technology innovation.

low cost high return vs capital bubble

• The myth of quick wealth attracts investors
• 97% of Memecoins have perished, with an average lifespan of only 1 year.

Attention Economy vs Out of Control and Transient

• Based on symbolic communication and community-driven
• Instability of attention leads to value collapse.

Key Points for Identifying High-Quality Memecoins

1. Narrative: Supportive narratives with communicative power
2. Community: Activity level on social platforms, cult atmosphere
3. Marketing: KOL Matrix, Communication Data
4. Risk Audit: LP Lockup, Contract Ownership
5. Market Performance: Expected market capitalization, liquidity, chip distribution
6. Smart Money: Tracking the Movements of Top Investors

Conclusion

Memecoins are like a carnival in the crypto world, demystifying blockchain terminology in a playful manner, becoming an undeniable force. In the future, we hope that Memecoins can transcend short-term speculation and bring a new look to Web3.

Investing in Memecoins requires caution; one should fully understand the risks, make rational judgments, and allocate assets reasonably.