Meme coins usher in spring? How should investors choose Meme projects
In April, the cryptocurrency market ushered in a batch of Meme coins that sprung up like mushrooms after rain. PEPE 6000 times in 4 days, WOJAK soaring 11340%, AIDOGE 10 times soaring, this kind of market is like a clarion call, which makes countless funds start to enter the market crazily.
According to CoinGecko data, as of April 27, 2023, the current total market value of global cryptocurrencies is about 1.26 trillion, and the total market value of the Meme currency sector is about 18.8 billion, accounting for about 1.5%. Since Meme currency was popularized by SHIB and DOGE in 2021, it has played a pivotal role in the encryption industry and has become one of the important components of the encryption investment landscape. After a round of bear market, meme coins like SHIB and DOGE not only survived, but also firmly sit at the top of the market value.
In the field of cryptocurrency, Meme currency has created an unprecedented miracle of wealth creation. So how did Meme Coin get to where it is today, and how should ordinary investors choose and participate?
Why the Meme coin started skyrocketing
The reason why the Meme currency can rise this time is mainly because the market has recovered this year, and the simple but huge wealth effect caters to people’s psychological needs. The most important label on the Meme currency is the small and the big. Although everyone knows that Meme currency has high risks, there are still a large number of investors chasing it.
Taking AIDOGE as an example, the Meme coin itself is a viral spread, and 95% of the coins are used as airdrops, attracting early entrants; The combination creates heat and further creates FOMO in the market. In short, it is by associating the content with the things that everyone pays attention to. Therefore, whoever can become the object of hot association will become the darling sought after by funds.
How to judge the value of Meme coin
Meme coins often have a unique image, name and logo, as well as some interesting functions and features, and their success has some common factors. The birth of any 100-times MEME coin is inseparable from a good token model, easy-to-spread stories, innovative gameplay, market enthusiasm, and emotional resonance.
For Meme, the narrative is the product, the culture is the product, and the community is the product. Therefore, it is difficult to accurately quantify the value of Meme coins by means of mathematical models, but its valuation can be vaguely judged. The valuation of a meme can be combined with multiple factors such as the size of the narrative (the size of the market that affects it) + the frequency of emotional arousal + celebrity effect (KOL recognition and ability to bring goods) + SOV (Share of Voice: media share) to judge. These factors constitute the characteristics of a successful meme coin.
How Individual Investors Choose Meme Coins
For individual investors, there are several key points on how to find a good Meme coin:
Get as early information as possible about the project. The Twitter and Discord of the project side are where many Meme coins grow. Under normal circumstances, new Meme coin project parties will first publish project information on Twitter, and then build a large number of communities on Discord. Therefore, paying attention to these two is the only way to obtain information in a timely manner, but this requires you to be able to do your own research, how to quickly judge the value, and more investors need their own experience and personal ability.
A reliable KOL can save investors a lot of work, keep track of the latest developments of these KOLs, and let them help you find Meme coins worth investing in. But KOL will also have its own purpose, and at the same time, there will be times when it misses. Don't believe it, and you shouldn't believe it all. The most important thing is to do your own research.
Try to invest broadly enough that you don't put all your eggs in one basket. For Meme currency, the way of small funds to disperse investment is a good choice. No one can guarantee that a Meme coin will be 100% successful, so if you want to reduce your own research costs, small capital entry and decentralized investment will help the final return.
Finally, don't ignore the risks that come from outside the market. The more transactions, the greater the risk, especially in the field of Meme currency, which is easy to create wealth myths. When using wallets and transactions, we must pay attention to safety and prevent hackers and other risks from outside the market.
veDAO, a good helper for project selection
To sum up, for individual investors, how to do a good job of research, how to allocate energy, and how to screen are the keys. But it's not an easy task for crypto veterans or newcomers alike. But if there is an IDO platform that can provide research analysis and screening, these tricky things for investors will become easily solved.
And veDAO is just 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 screening and evaluation of project information, thereby Analyze the project to form its own methodology, and finally quickly choose among the endless Meme coins.
veDAO provides investors with support in three directions: summary information, professional analysis, and comprehensive scoring.
veDAO summarizes the project's social media and news trends, allowing investors to track the project in one stop; at the same time, veDAO also shows the KOLs, asset whales and NFT whales who follow and follow the project. Through a concise and intuitive way, let Investors can clearly understand the heat and trend of the project, so as to make more reasonable judgments.
In terms of professional analysis support, veDAO not only integrates project-related social media articles, but also veDAO has specially built a research institute to regularly produce in-depth project and industry research articles for investors, so that veDAO users can not only Broad and in-depth understanding of the project. veDAO will soon launch the "Project Review" mode, which is an expert review group composed of representatives from various fields of the industry and KOLs to review projects and give investors clear and brief investment advice.
veDAO follows the principles of independence, objectivity, fairness, and authenticity, uses scientific methods, and starts from 6 first-level dimensions + 20 second-level dimensions of project background, product technology, project risk, business model, market operation, and user experience. The project is scored comprehensively. In this way, investors can research and understand a project more conveniently.
While maintaining continuous updates, veDAO provides investors with decision-making support step by step through these three methods: firstly, all kinds of useful information related to the project are aggregated together, and then after the veDAO Research Institute and expert review team Sharing and evaluation help users to complete the filtering and screening of projects, and finally help users to further focus their vision through the rating system. Through this process, users not only have an intuitive understanding of the project-related background and development trends, but also have a clear judgment on the specific development prospects of the project.
veDAO is a decentralized investment and financing platform led by DAO. It will be committed to discovering the most valuable information in the industry. It is keen on digging the underlying logic and cutting-edge tracks in the field of digital encryption, so that every role in the organization can fulfill its responsibilities and get paid off.
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veDAO is a decentralized investment and financing platform led by DAO. It will be committed to discovering the most valuable information in the industry. It is keen on digging the underlying logic and cutting-edge tracks in the field of digital encryption, so that every role in the organization can fulfill its responsibilities and get paid off.
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