Is it Spring for Meme Coins? How Should Investors Choose Meme Projects
In April, the cryptocurrency market saw a surge of Meme coins popping up like mushrooms after the rain. PEPE surged 6000 times in 4 days, WOJAK skyrocketed by 11340%, and AIDOGE surged 10 times. This market trend is like a clarion call, prompting countless funds to enter the market.
According to CoinGecko data, as of April 27, 2023, the total global cryptocurrency market value is approximately 12.6 trillion, and the total market value of Meme coins is approximately 188 billion, accounting for about 1.5%. Since being popularized by SHIB and DOGE in 2021, Meme coins have become an important part of the cryptocurrency investment landscape. After a bear market, Meme coins like SHIB and DOGE not only survived but also maintained a leading market value position.
In the cryptocurrency field, Meme coins have created unprecedented wealth miracles. So how did Meme coins come to this point, and how should ordinary investors choose and participate?
Why Meme Coins are Surging
The rise of Meme coins this time is mainly due to the warming market this year and the simple yet huge wealth effect that caters to people's psychological needs. The most important label for Meme coins is the ability to achieve great success with a small investment, despite the high risk. Although everyone knows that Meme coins are high-risk, there are still a large number of investors chasing after them.
Taking AIDOGE as an example, Meme coins themselves spread like a virus, and by using 95% of the coins for airdrops, they attracted early investors. At the same time, AIDOGE combined the current hot elements, creating heat with the combination of AI+Arb+Doge, further fueling the market's FOMO. In short, it associates content with what everyone is paying attention to, so whoever can become associated with the hot topic will be the darling of the funds.
How to Evaluate the Value of Meme Coins
Meme coins often have unique images, names, and logos, as well as some interesting features and characteristics. Their success has some common factors. The birth of any Meme coin with a hundredfold increase is inseparable from a good token model, a story that is easy to spread, innovative gameplay, market heat, and emotional resonance.
For Meme coins, narrative is the product, culture is the product, and community is the product. Therefore, it is difficult to accurately quantify the value of Meme coins using mathematical models, but their valuation can be judged in a vague manner. The valuation of a Meme can be judged by the size of the narrative (the size of the market affected), the frequency of emotional awakening, the celebrity effect (KOL recognition and influence), and the Share of Voice (media weight share), among other factors. These factors also constitute the characteristics of a successful Meme coin.
How Individual Investors Should Choose Meme Coins
For individual investors, key points in finding a good Meme coin include:
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Obtain early information about the project as much as possible. The project's Twitter and Discord are where many Meme coins grow. In general, new Meme coin projects will first release project information on Twitter and then build a large community on Discord. Therefore, paying attention to these two platforms is the best way to get information in a timely manner, but it requires you to do your own research and quickly judge value, which requires the investor's own experience and personal ability.
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A reliable KOL can save investors a lot of work. Continuously track the latest developments of these KOLs and let them help you find Meme coins worth investing in. However, KOLs also have their own purposes and can make mistakes. Do not disbelieve, but also do not fully believe. The most important thing is to do your own research.
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Try to make a wide range of investments. For Meme coins, diversifying small funds is a good choice. No one can guarantee that a Meme coin will be 100% successful, so to reduce your research costs, investing small funds in a diversified manner can help improve your final returns.
Finally, do not ignore external risks. The more trades, the greater the risk, especially in the field of Meme coins, which easily create wealth myths. When using wallets and trading, be sure to pay attention to security and guard against risks from outside the market, such as hackers.
veDAO, a Good Helper for Project Selection
In summary, for individual investors, how to conduct research, allocate energy, and screen projects is crucial. But whether for experienced cryptocurrency investors or newcomers, this is not an easy task. However, if there is an IDO platform that can provide research analysis and screening, these challenging tasks for investors become much easier.
veDAO is such a decentralized investment and financing platform, which not only provides investors with a channel to participate in new project financing, but also allows users to have a more intuitive understanding of projects through the screening and evaluation of project information, thereby analyzing and selecting projects quickly in the ever-growing Meme coin market.
veDAO provides support for investors in three directions: information aggregation, professional analysis, and comprehensive scoring.
veDAO aggregates the social media and news dynamics of projects, allowing investors to track projects in one place. At the same time, veDAO also displays KOLs, asset whales, and NFT whales who are following and supporting the project, allowing investors to clearly understand the heat and trends of the project in a concise and intuitive manner, making more reasonable judgments.
In terms of professional analysis, veDAO not only integrates project-related social media articles, but also has a research institute that regularly produces in-depth project and industry research articles for users, allowing veDAO users to have a broad and deep understanding of projects. veDAO is also about to launch a "project review" mode, in which a panel of experts from various fields and KOLs will provide clear and concise investment advice to investors.
veDAO follows the principles of independence, objectivity, fairness, and truthfulness, and uses scientific methods to comprehensively score platform projects based on six primary dimensions (project background, product technology, project risks, business model, market operations, and user experience) and 20 secondary dimensions. Through this approach, investors can more conveniently research and understand a project.
While continuously updating, veDAO gradually provides decision-making support for investors through these three methods: first, aggregating useful information related to projects; then, sharing and evaluating by the veDAO research institute and expert review panel to help users filter and select projects; and finally, focusing users' perspectives further through the rating system. Through this process, users gain a clear understanding of the background and development trends related to projects, as well as a clear judgment of the specific prospects of projects.
The endless stream of Meme coins is dazzling, and the hidden wealth myths among them are also tempting. But in the field of cryptocurrency, in-depth research based on projects is more important than anything else, especially for Meme coins. To make quick decisions in the Meme coin market and get a piece of the pie, do not forget that veDAO is the best helper for aggregating and refining information and helping investors make decisions.
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