Is the Meme coin迎来春天? How should investors choose Meme projects?

Written by: veDAO Research Institute

In April, the cryptocurrency market welcomed a surge of Meme coins that popped up like mushrooms after rain. The 6000x PEPE in 4 days, the 11340% surge of WOJAK, and the 10x increase of AIDOGE are like a clarion call, prompting countless funds to rush in.

According to CoinGecko data, as of April 27, 2023, the total global cryptocurrency market capitalization is approximately $1.26 trillion, with the Meme coin sector's total market cap around $1.88 billion, accounting for about 1.5%. Since being ignited by SHIB and DOGE in 2021, Meme coins have held a significant position in the crypto industry, becoming an important component of the crypto investment landscape. After experiencing a bear market, Meme coins like SHIB and DOGE not only survived but also remained at the forefront of market capitalization.

In the cryptocurrency field, Meme coins have created an unprecedented wealth miracle. So how did Meme coins get to where they are today, 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 market recovery this year and the simple yet enormous wealth effect that resonates with people's psychological needs. The most important label of Meme coins is the idea of "small bets for big wins." Although everyone knows that Meme coins carry high risks, a large number of investors still rush in.

Taking AIDOGE as an example, Meme coins spread virally, and with 95% of the coins used for airdrops, it attracted early participants. At the same time, AIDOGE combined popular elements of the moment, creating buzz with the combination of AI + Arb + Doge, further generating market FOMO. In short, by linking content to matters of public interest, those who can become associated with hot topics will be the ones favored by funds.

How to Assess the Value of Meme Coins

Meme coins often have unique images, names, and logos, as well as some interesting functions and characteristics. Their success shares some common factors. The birth of any hundredfold MEME coin is inseparable from a good token model, easily spreadable stories, innovative gameplay, market heat, and emotional resonance, among others.

For Meme coins, narrative is product, culture is product, and community is product. Therefore, it is difficult to precisely quantify the value of Meme coins using mathematical models, but their valuation can be vaguely assessed. The valuation of a Meme can be judged by the size of the narrative (the scope of market influence) + the frequency of emotional awakening + celebrity effect (KOL recognition and sales ability) + SOV (Share of Voice: media share ratio) and other combined factors. These factors constitute the characteristics of a successful Meme coin.

How Individual Investors Should Choose Meme Coins

For individual investors, finding a good Meme coin hinges on a few key points:

Try to obtain early information about projects. The project team's Twitter and Discord are where many Meme coins grow. Generally, 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 timely information, but this requires you to conduct your own research and quickly assess value, which relies more on the investor's experience and personal ability.

A reliable KOL can save investors a lot of work. Continuously following the latest updates from these KOLs can help you find worthwhile Meme coins to invest in. However, KOLs also have their own agendas and can make mistakes. It's important not to fully trust or completely distrust them; the key is to conduct your own research.

Diversify your investments as much as possible; don't put all your eggs in one basket. For Meme coins, a small, diversified investment strategy is a good choice. No one can guarantee that a Meme coin will succeed 100%, so to reduce your research costs, entering with small amounts and diversifying your investments can help improve your overall returns.

Lastly, do not overlook the risks from outside the market. The more trades you make, the greater the risk, especially in the realm of Meme coins, which can easily create wealth myths. Always pay attention to security when using wallets and trading to guard against risks from hackers and other external threats.

veDAO, Your Helpful Partner in Project Selection

In summary, for individual investors, how to conduct research, allocate energy, and filter projects is crucial. However, this is not an easy task for both crypto veterans and newcomers. If there is an IDO platform that can provide research analysis and filtering, these challenging tasks for investors become much easier.

veDAO is such a decentralized investment and financing platform that not only provides investors with a channel to participate in new project financing but also offers a more intuitive understanding of projects through information filtering and evaluation, allowing users to analyze projects and form their own methodologies, ultimately enabling quick choices among the plethora of Meme coins.

veDAO provides investors with support in three areas: information aggregation, professional analysis, and comprehensive scoring.

veDAO aggregates project social media and news updates, allowing investors to track projects in one place; it also displays KOLs, asset whales, and NFT whales who are following the project, providing a clear and intuitive way for investors to understand the project's heat and trends, enabling more reasonable judgments.

In terms of professional analysis support, veDAO not only integrates social media articles related to projects but also has established a research institute that regularly produces in-depth project and industry research articles for investors, allowing veDAO users to gain both broad and deep insights into projects. veDAO is also set to launch a "Project Review" model, where an expert review team composed of representatives from various industry fields and KOLs will provide feedback on projects, offering investors clear and concise investment advice.

veDAO adheres to the principles of independence, objectivity, fairness, and authenticity, using scientific methods to comprehensively score platform projects based on six primary dimensions: project background, product technology, project risk, business model, market operation, and user experience, along with 20 secondary dimensions. This approach makes it easier for investors to research and understand a project.

While continuously launching new projects, veDAO gradually provides decision-making support for investors through these three methods: first, aggregating all useful information related to the project; then, sharing and evaluating it through the veDAO research institute and expert review team to help users filter and select projects; and finally, using a rating system to help users further focus their perspectives. Through this process, users gain an intuitive understanding of the project's broader context and development trends, as well as a clear judgment on the project's specific development prospects.

The endless stream of Meme coins can be dazzling, and the wealth myths hidden within them can be tempting. However, in the cryptocurrency field, conducting in-depth research based on projects is more important than anything else, especially for Meme coins. If you want to make quick decisions in the Meme coin market and get a piece of the pie, remember that veDAO is the best partner for aggregating and refining information to assist investors in decision-making.