Comprehensive Interpretation of the MEME Track: How to Become a Golden Dog Hunter?
Recent performance of MEME shows its unique position and influence in the cryptocurrency market. They attract widespread attention with rapid price fluctuations, wealth-building narratives, and community-driven characteristics.Author: @JSkye 32
Mentor: @CryptoScott_ETH
Introduction
MEME plays a central role in Web3 culture, quickly resonating within the cryptocurrency community through its unique dissemination methods and widespread popularity. These often humorous and satirical digital images or concepts not only deepen the connections among community members but also become important means of expressing opinions, emotions, and market trends.
MEME can transcend language and cultural barriers, achieving widespread dissemination at a very low cost, thus playing an indispensable role in promoting the awareness and participation of Web3 projects.
Recently, the performance of MEME coins in the market has attracted widespread attention. According to data from CoinMarketCap, the market capitalization and trading volume of MEME coins show significant growth, reflecting the popularity of such coins and the high interest from investors.
For example, BOOK OF MEME ($BOME) achieved over 1000% growth in a short period. The reason behind this phenomenon mainly lies in the large issuance and low price of MEME coins, making them an ideal choice for attracting funds in a bull market, as investors seek the possibility of high returns from small investments.
Moreover, MEME coins often revolve around light-hearted and humorous themes, making them easy to spread quickly on social media, thereby attracting more attention and participation.
I. The Dissemination Mechanism of MEME
1. Social Media and Community Interaction
Social media platforms are key channels for the dissemination of MEME coins. Through Twitter, Reddit, Telegram, etc., project teams interact directly with users, sharing updates, hosting events, and responding to community feedback. This interaction not only enhances the visibility of the project but also strengthens community cohesion, making information dissemination faster and more effective.
Bitcoin ($BTC), as the earliest cryptocurrency, primarily engages its community through social media platforms like Twitter and Reddit. BTC community members frequently share market dynamics, technical updates, and investment strategies, forming a powerful information-sharing network.
For example, the r/Bitcoin subreddit on Reddit has over 1 million subscribers, and these users enhance BTC's brand recognition and market influence through discussions and sharing, forming a strong community consensus.
2. Viral Marketing
The viral marketing of MEME coins relies on highly shareable content, such as catchy slogans, amusing images, or unique concepts. This content is easily accepted by users and spreads rapidly across social networks, achieving low-cost yet effective market promotion, allowing MEME coins to gain widespread attention in a short time.
$AKITA leveraged the visual elements of Shiba Inu, which have a broad audience base in both Web2 and Web3, spreading rapidly through creative content on social media platforms.
For instance, $AKITA community members created various Shiba Inu-related MEME images and videos, which were widely shared on platforms like Twitter and Reddit due to their humor and visual appeal. Additionally, $AKITA further enhanced its viral marketing effect by hosting online competitions and interactive events, such as the creation and auction of NFT artworks.
These activities not only increased community engagement for $AKITA but also attracted more attention from potential investors, making $AKITA a popular MEME coin in a short period.
3. Leveraging Celebrity Effect
Utilizing the celebrity effect to promote MEME coins involves collaborating with influential public figures to share MEME coin information through their social media platforms, attracting the attention of their fans.
Creating highly interactive content, such as challenges and live streams, increases user engagement. Launching limited edition MEME coins or merchandise in collaboration with celebrities, as well as integrating charitable activities to enhance brand image. At the same time, monitoring the effectiveness of promotional activities to ensure that the celebrity effect translates into actual market influence.
The popularity of $DOGE is largely attributed to the celebrity effect of Elon Musk. Musk has mentioned DOGE multiple times on Twitter, calling it "the people's cryptocurrency," which sparked widespread resonance among fans and the media. These tweets not only enhanced $DOGE's brand recognition but also ignited the community's creative enthusiasm, generating a large amount of related user-generated content.
Every time Musk mentions dog-related content on Twitter, it leads to a rapid surge in $DOGE's price, making it an iconic symbol of cryptocurrency culture.
4. KOL and Community Influence
Key Opinion Leaders (KOL) play a crucial role in the promotion of MEME coins. Their recommendations and endorsements can significantly enhance the credibility and attractiveness of a project. Additionally, the influence of the community should not be overlooked, as active community members can accelerate the dissemination of project information through word-of-mouth.
The $SHIB community effectively raised the project's visibility by collaborating with several KOLs in the cryptocurrency field. For example, when well-known KOLs like CZ (CEO of Binance, Zhao Changpeng) mention $SHIB on social media, their large following becomes interested in the project.
Furthermore, active interactions among $SHIB community members on platforms like Twitter and Reddit, through sharing trading experiences, creating MEME content, and participating in discussions, further enhance the project's attractiveness and credibility. This synergy between KOLs and the community has made $SHIB a hot topic in the cryptocurrency market in a short time, attracting significant attention from investors.
5. Wealth Effect
The price fluctuations of MEME coins are often accompanied by a strong wealth effect. When prices rise, new investors are attracted to enter the market, hoping to gain profits through participation. This effect not only drives further price increases but also expands the cultural dissemination of MEME coins.
Silly Dragon was launched by Solana founder Anatoly Yakovenko during Halloween 2023. This direct support from the founder of a public chain added trust and authority to the project, further driving its wealth effect.
$SILLY exhibited significant market growth in a short time, reaching a market capitalization of $70 million in less than two weeks after its launch, with over 8,600 holding addresses and an on-chain liquidity pool of up to $1.2 million. This rapid market growth is seen as a wealth effect, attracting more investors and traders.
6. Incentive Mechanisms
Incentive mechanisms are one of the important strategies for promoting MEME coins. By using airdrops, transaction burn taxes, and lucky draws, project teams encourage users to hold and trade tokens, thereby increasing market activity and user stickiness, while also bringing more attention and discussion to the project.
$AIDOGE adopted a decreasing airdrop mechanism, where early participants could receive more tokens, incentivizing users to participate early and increasing the initial demand for the tokens.
At the same time, a transaction burn tax mechanism was designed, where each on-chain transaction incurs a 15% burn tax, part of which is used for ecological development, part is burned, and part is rewarded to liquidity providers and holders as staking dividends. This mechanism increases the scarcity of the tokens, thereby enhancing their value.
7. Unique Concepts and Designs
The design of MEME coins is often closely related to their concepts, with unique visual elements and cultural meanings that make them stand out among numerous cryptocurrencies. This design not only increases the project's recognition but also makes MEME coins easier to share and discuss on social media.
The concept of $BOME is "Book of MEME." This project, initiated by Pepe MEME artist Darkfarm, aims to create a gallery focused on the permanent storage and creation of MEME. BOME quickly attracted a large amount of attention and spread rapidly on social media, with its market capitalization significantly increasing in a short time.
The concept of "Book of MEME" combines MEME culture with blockchain technology, using a decentralized platform to preserve and share MEME content. The project raised funds through a presale event and attracted a large number of investors and community members in a short time.
The rapid rise of $BOME demonstrates how MEME coins can quickly gain attention and value in the cryptocurrency market through unique concepts and designs, as well as active community participation.
8. Innovative and Easily Shareable Topics
MEME coin projects often combine innovative or easily shareable topics to enhance their visibility. Whether related to popular culture MEMEs or references to social phenomena, these topics can spread rapidly within the community, resonating widely and thereby increasing the project's market recognition.
$SLERF is a MEME coin based on the Solana blockchain that quickly gained popularity due to its unique narrative and community involvement. The founder of $SLERF accidentally destroyed key tokens due to an operational error and subsequently initiated a rescue operation to raise funds to compensate presale participants.
This action received positive responses from the community and several exchanges, including support from well-known figures and influencers. The price of $SLERF experienced dramatic fluctuations but managed to rebound significantly in a short time, setting new highs. Its narrative and market performance propelled $SLERF to become a focal point in the market.
II. How MEME Captures Emotions (Causing FOMO)
In the cryptocurrency market, the popularity of MEME coins is often closely related to their ability to capture and stimulate investor emotions. FOMO (Fear of Missing Out) is a particularly intense emotional response that plays a key role in the dissemination and value formation of MEME coins. The following details how MEME coins capture emotions, especially in triggering FOMO.
1. Viral Spread on Social Media - Rapid Dissemination Leads to Panic Buying
MEME coins quickly gain attention through viral dissemination on social media platforms. A tweet about a certain MEME coin or a discussion post on Reddit, if engaging or entertaining, can be widely shared in a short time.
This method of dissemination not only increases the visibility of MEME coins but also creates a sense of urgency within the community, making people worry about missing the opportunity to participate in a potentially hot project.
The viral spread of $DOGE began with a tweet from Elon Musk on Twitter, calling it "the people's cryptocurrency." He subsequently mentioned DOGE multiple times, becoming its de facto spokesperson.
Statistics show that every time Musk tweets about dog-related content, it leads to a significant short-term increase in $DOGE's price, causing many investors to fear missing out on the rise and urgently join in buying when Musk mentions DOGE.
2. Community and KOL Promotion - Panic from Missing Credible Potential Gains
The community and key opinion leaders (KOL) of MEME coins play an important role in capturing emotions. The endorsement or recommendation of KOLs can quickly enhance the credibility of a MEME coin, making community members feel the need to participate to avoid missing potential gains.
Additionally, active discussions within the community and the sharing of success stories can also amplify FOMO emotions.
3. Price and Market Performance - Bull Market Wealth Myths Drive Buying Emotion
Market price fluctuations and performance are direct factors in triggering FOMO. When the price of a MEME coin rises rapidly, investors worry about missing the opportunity to profit. Market hype and news reports further amplify this emotion, leading more people to join the buying frenzy out of FOMO.
Bitcoin's price reached an all-time high of $70,000, signaling to many users that a bull market had arrived. This signal triggered FOMO emotions, causing many investors to rush to buy various assets to avoid missing further price increases in the bull market.
4. Marketing and Narrative Strategies - Hidden Wealth Opportunities Under Unprecedented Narratives
Successful MEME coin projects often employ carefully designed marketing and narrative strategies. By telling engaging stories, MEME coins can establish emotional connections with investors, making them feel they are part of a larger narrative. This emotional investment further strengthens FOMO emotions, as investors do not want to miss the opportunity to be part of the story.
5. Group Psychology and Network Effects - Collective Effects Lead to Rapid FOMO Spread
The value of MEME coins largely depends on their network effects, meaning their value increases as more people join and use them. Group psychology plays a key role here, as people are inherently inclined to follow the behavior of the group. When they observe others participating and benefiting, FOMO emotions prompt more people to join in to avoid being left out.
6. Scarcity and Time Sensitivity - Creating Urgency to Promote Decision-Making
MEME coin projects capture emotions by creating scarcity and time sensitivity. For example, relying on ecological chains or well-known investment institutions, multiple influencers promoting limited-time presales, limited airdrops, or special community events can create a sense of urgency, making investors feel they must act immediately to avoid missing out.
III. The Impact of MEME on Public Chains
MEME coins have a significant impact on public chain ecosystems, attracting a large number of new users through wealth myths and social attributes, thereby increasing community activity and participation. This expansion of the user base brings more liquidity to public chains, especially in decentralized exchanges (DEX), helping to reduce transaction costs and improve market efficiency.
The popularity of MEME coins also promotes ecosystem diversity, stimulating the development of new DApps and technological innovation, driving growth in areas such as DeFi and NFTs. Furthermore, MEME coins effectively enhance the recognition of public chains through viral marketing and social media dissemination.
However, the high volatility of MEME coins also introduces market instability, posing challenges to the long-term stable development of public chains. Therefore, public chain platforms need to manage market risks while promoting innovation and growth to ensure the health and sustainability of the ecosystem.
Case Study 1:
$BOME is a MEME coin project launched on the Solana blockchain, issued by Pepe MEME artist Darkfarm. The launch of BOME has had a significant impact on the Solana ecosystem, mainly reflected in the following aspects:
Increased Community Activity: The presale and listing of $BOME attracted widespread attention within the Solana community, drawing a large number of new users and investors into the Solana ecosystem. This phenomenon not only increased trading activity on Solana but also enhanced its overall visibility in the cryptocurrency market.
Growth of Liquidity Pools: $BOME injected significant funds into Solana's liquidity pools through presale and airdrop activities. This not only provided more liquidity for Solana's decentralized exchanges (DEX) but also offered trading depth and market vitality for other Solana projects.
Ecosystem Diversity: The successful listing of $BOME showcased the Solana ecosystem's friendliness and support for MEME coin projects, helping to attract more similar projects to develop and launch on Solana, thereby increasing the diversity and innovation of the ecosystem.
Investor Confidence: The listing of $BOME and its subsequent market performance may influence investor confidence in the Solana ecosystem. On one hand, the success of $BOME may enhance investors' confidence in Solana projects; on the other hand, if $BOME experiences a price crash or other negative events, it may also impact the overall image of the Solana ecosystem.
Overall, the impact of $BOME on Solana is multifaceted, including positive community participation and liquidity growth, as well as changes in market volatility and investor confidence. The TVL and capital inflow of the Solana ecosystem: Currently, the TVL of the Solana ecosystem has exceeded $4.3 billion, rising over 100% in the past month. If capital continues to flow in, the overall ecosystem token prices will further rise. Meanwhile, various exchanges are noticeably speeding up the listing of Solana tokens. The secondary market funds flowing in from exchanges will also indirectly affect the TVL situation of the Solana ecosystem.
Case Study 2:
$DOODOO, as the first true coin on Aptos, demonstrates its emphasis on innovation and community-driven development. Its launch seems to seek to create unique value within the Aptos ecosystem, reflecting the spread and influence of MEME coin culture on emerging public chains.
Enhanced Community Participation: The listing of $DOODOO may attract MEME coin community members to join the Aptos ecosystem, who are typically active on social media and cryptocurrency forums. Their participation can increase the community activity and user engagement of Aptos.
Increased Market Liquidity: Referring to the recent trend of MEME bringing heat to Solana, MEME coins often quickly attract trading volume. The listing of $DOODOO may bring more liquidity providers and traders to Aptos's DEX, thereby enhancing the overall network liquidity.
Promotion of Innovative Applications: The successful listing of $DOODOO may inspire developers to build more innovative DApps and smart contracts on Aptos, especially in areas related to NFTs, gaming, and other MEME culture-related fields.
Increased Media Exposure: MEME coins typically receive high media attention, and the listing of $DOODOO may attract more cryptocurrency news and media coverage, bringing more exposure and recognition to the Aptos ecosystem, making more project teams and traders aware of the chain.
Ecosystem Support for Projects: Public chain foundations support ecosystem projects through investments and token incentives. Subsequently, Aptos continues to invest in ecosystem projects or incentivize users of ecosystem projects in the form of APT, leading to a continuous influx of funds into the ecosystem.
In summary, the listing of $DOODOO in the Aptos ecosystem may bring a series of positive impacts, including enhanced community participation, increased market liquidity, promotion of innovative applications, increased media exposure, expanded user base, driving ecosystem growth, and generating positive brand synergy. These impacts contribute to the overall development and maturity of the Aptos ecosystem.
IV. Mastering the Wealth Code, Early Discovery of Thousandfold Coins
Although MEME coins lack traditional financial value or commercial applications, they still possess explosive growth potential. The success of MEME tokens largely depends on community support and social media hype, which can bring significant returns to investors.
Choosing promising MEME tokens requires astutely monitoring social media trends, community engagement, and early trading patterns to invest before they become viral content.
MEME tokens are high-risk; only a few tokens can achieve significant success, while most tokens experience rapid declines after short-term growth. Investors should approach such investments with caution.
When searching for MEME coins with high growth potential, investors can refer to the following dimensions:
1. Target Selection
To determine whether a MEME can become popular and break out, one must first look at its cultural shareability and the initial core seed users (holders), as well as its early community culture. Its images and names must be memorable.
MEMEs like $DOGE, $SHIB, and $PEPE have a certain popularity foundation in Web2, which allows them to gain widespread recognition in Web3.
2. Community Activity
An active community is key to the success of MEME coins. Check the project's social media platforms, such as Twitter, Reddit, and Telegram, to see if multiple KOLs are promoting it and whether community members' interactions can evoke FOMO emotions. A community that actively participates and continues to grow may indicate a promising development outlook for the project.
3. Project Background
Research the team and developers behind the project to understand their experience and background. A team that is experienced and transparent, with a well-structured white paper and economic model, is more likely to drive the project forward.
4. Good Narrative
A good narrative inherently possesses internal appeal. Breaking conventions and presenting information that contradicts people's thought patterns can increase the intrinsic attractiveness of a MEME. In addition to breaking conventions, being mysterious and controversial can also enhance internal influence.
The recently popular $SLERF brought a new epic narrative. Typically, MEME coin developers burn the MEME coins in the liquidity pool when the token is launched. This action demonstrates to presale investors that developers will not be able to extract liquidity from the liquidity pool, and it also revokes the developers' minting rights, ensuring that they cannot control the token's circulation. Therefore, this step is often seen as important bullish information for the token.
The founder of $SLERF stated on Twitter that he accidentally destroyed the $SLERF tokens reserved for airdrops and the 535,000 $SOL tokens raised during the presale due to an operational error, losing minting rights. This effectively drained liquidity, and this unexpected event triggered dramatic market fluctuations for the $SLERF token, attracting significant funds and community attention.
Despite experiencing price surges and crashes, the popularity of SLERF remains strong, as the founder maintained community interest through events and self-deprecating humor in spaces. Subsequently, $SLERF initiated a rescue operation to raise donations, aiming to collect $10 million to compensate presale participants, receiving support from Sun Yuchen, LBank, and several exchanges.
In addition to donations initiated by the founder, many influencers on platform X and several exchanges have also shown interest or actively responded to SLERF's activities. The continuously evolving story has brought ongoing heat to SLERF, making it likely to create new milestones in the MEME coin market.
Currently, $SLERF has been listed on exchanges such as Bybit, Gate.io, LBank, and Bitget, and it has surpassed $BOME to become the third-largest MEME coin in the Solana ecosystem by market capitalization.
5. Partners and Supporters
Check whether the project has well-known partners or supporters, such as public chains, cryptocurrency exchanges, investment funds, or industry influencers. The endorsement of these partners may increase the project's credibility and attractiveness.
6. Data Tracking
Utilize on-chain bots to monitor tokens with rapidly growing address numbers and active trading volumes. Analyze on-chain data by monitoring early addresses or the largest holding addresses, and analyze their buying and selling behaviors. If there is a large-scale sell-off from early addresses, one should sell or reduce their position appropriately.
7. Practical Value
MEME coins initially rely on cultural narratives and speculative hype to build market consensus, but as the market saturates, they must turn to practical applications to maintain growth. For example, $DOGE achieves functionality by serving as a means of payment, while Shiba Inu launched an ecosystem including ShibaSwap and NFT platforms after its market capitalization growth to expand its value and user base.
Investing in MEME coins usually comes with high risks, so it is important to diversify the investment portfolio and not put all funds into a single asset. At the same time, only invest amounts you are willing to lose and be prepared to hold long-term.
V. Summary and Outlook
Summary:
The recent performance of MEME coins shows their unique position and influence in the cryptocurrency market. They attract widespread attention with rapid price fluctuations, wealth narratives, and community-driven characteristics.
The popularity of MEME often accompanies cultural phenomena and market hype. Taking the recently active Solana ecosystem as an example, the launch of Backpack Exchange and the airdrop activities of Jupiter have injected new vitality into Solana's MEME projects, attracting significant user and capital attention.
These activities not only enhance the liquidity of MEME Tokens but also increase market interest in the Solana ecosystem. The low gas fees and high-performance characteristics of Solana provide an ideal platform for MEME projects. This technological advantage allows Solana to handle a large number of transactions more efficiently, lowering the participation threshold for users, thus laying the foundation for the popularity of MEME projects.
Additionally, unique marketing strategies, such as offering BONK tokens with the purchase of Saga Web3 phones, have also promoted the popularity of BONK tokens and the Solana ecosystem. This marketing approach, which combines physical products with digital assets, provides new ideas for the market promotion of MEME Tokens while showcasing the potential for MEME culture to integrate with the real world. New concepts like AI+Crypto also bring new growth points for MEME projects.
However, this rapid growth often comes with high risks, especially under the influence of market sentiment and FOMO, leading to significant price volatility and presenting challenges for investors.
Outlook:
The future development of MEME may place greater emphasis on technological innovation and deep community participation. As blockchain technology continues to advance, MEME projects may integrate more smart contract functionalities, cross-chain interoperability, and decentralized finance (DeFi) applications, thereby providing richer user experiences and value creation.
Community-driven MEME projects will continue to enhance user engagement and loyalty through forms such as NFTs, gaming, and social interactions, forming a more solid community foundation. Community building and cultural identity will remain key to the success of MEME, as strong community consensus can provide lasting vitality for projects.
At the same time, as the regulatory environment gradually clarifies, compliance will become an important factor in the long-term survival of MEME projects. Investors and market participants' understanding of MEME will also mature, with rational investment and value-based holding likely becoming mainstream.
References
【Disclaimer】This report is an original work completed by @GryphsisAcademy* students* @JSkye 32, with revision suggestions provided by Gryphsis Academy mentor @CryptoScott_ETH. The author is solely responsible for all content, which does not necessarily reflect the views of Gryphsis Academy or the organization that commissioned the report. Editing content and decisions are not influenced by readers. Please be aware that the author may hold cryptocurrencies mentioned in this report. This document is for informational purposes only and should not be used as the basis for investment decisions. It is strongly recommended that you conduct your own research and consult neutral financial, tax, or legal advisors before making investment decisions. Please remember that past performance of any asset does not guarantee future returns.
