While the headline picks just a couple of types, this post aims to address the entire class of “Meme coins” or as some prefer calling them “shit coins”. You can find a list of these in a couple of places:
- the Trending search on Coinmarketcap (that’s a joke, of course. But like I said it yesterday on Twitter, I have no clue why only such coins trend on Coinmarketcap)
- this page lists most of these projects
Of course, if you want to find the “gems” which are not yet listed on Coinmarketcap or Coingecko, you could always check Poocoin.app. Besides, chances are that if you’re on Twitter, you’re bound to find a new one every single day. I just saw one called MERICA token, thanks to a comment from them on one of my posts. They are set to Make Crypto Great Again. Whatever that means!
Coming back to what I’m trying to say here,
- If you’re new to cryptocurrencies and/ or investing / trading, STAY AWAY from these projects. Can’t stress this enough. Yes, a $SHIB has grown to a $3.3 billion market cap and a $DOGE to $48 billion, but trust me for each SHIBA or DOGE, there are 99 others that have failed or are set to fail. This is just a given.
- Just saw there’s a ShibaPup, ShibaCash, Shiba BSC, Shiba Cosmos, Shiba Moon. Just click any one of these sites and you’ll notice that each seems like a copy of the others. There’s absolutely nothing that showcases the fundamentals of these projects. Why? Because there are NO FUNDAMENTALS in most, if not all. These are just one-pager websites, which have latched onto terms like “deflationary”, “high yield”, and the likes, are built by anonymous teams, have a Twitter and Telegram account. That’s it. There’s no business model.
- I realize the temptation for a quick buck is very strong in investing or trading. I need to resist it all the time. If you do give in, please ensure it is with a very very SMALL AMOUNT. These projects can vanish as fast as they appear. If your portfolio is worth a 100$ and you allocate a maximum of $15 to a single (sensible, fundamentally sound) project, my suggestion is do NOT allocate more than a 1-2% to something like this. Ideally ZERO. Always put in a amount in crypto which does not leave you with sleepless nights.
Digressing here a bit: Recently interacted with one guy who jumped onto a newly listed project just ahead of its Binance listing. He redeemed all of his other holdings and put that amount, totaling a $13000 into this project. The token is called Alien World (TLM). He got in at the price of around $7 per token. Upon listing on Binance this tanked to 50 cents. It’s currently at 17 cents. Bottomline, remember to diversify your portfolio. Do not overexpose yourself to any one project.
- BEWARE THE SHILLER. I just saw a Twitter crypto influencer (stopped following him after these tweets. Just a personal choice) screaming his lungs out since yesterday about a project called Corgi Doge. It’s run up quite a bit from when he started talking about it. I saw it at a $3 million market cap initially. It’s currently $13 million. He’s made all possible comparisons with other “dog-named projects”, and how this is at least a $1 billion project. The latest tweets says “this is just the beginning”. Just to clarify, I have no clue what this project is. But I’m convinced he’s being a shill here. I just wish he’d at least advocate profit booking or protecting capital for his followers. I know he’s not responsible for others foolishness, but just think someone who develops a following like this ought to take that little extra effort on the guidance.
I saw the same with another influencer a few weeks back, hyping up a project called SAVE (Save The World Token). Drove the price up, I think to a near 150 million market cap in a couple of days. Kept screaming to his followers this will be the fastest $1 billion market cap project. The third day, he went eerily silent. Price of SAVE started coming down. On the fourth day, he came up with an apology for promoting a meme token, promising not to do that again. Sure he dumped his holdings at the top. SAVE is currently a $6 million cap. So BE CAREFUL. Just because an account has 30,000 followers or 180,000 followers, doesn’t mean their word is a commandment. Do not ape in blindly. Book profits if you’ve seen some. Protect your capital at all costs.
In summary,
- If you’re new to crypto, you’d be better off staying away from meme tokens
- If you do give into temptation, invest an amount you can afford to lose
- Do not take an influencers word as a commandment. Because it is not
- Know that 90% of these projects (at the least) will eventually vanish. That can happen anytime. So look for projects where you do not wake up each morning having to check if it still exists
- There’s load of fundamentally sound projects. Spend your time researching those. You may well find the next 100x there
- Investing is about discipline and patience. Yes, overnight gains are amazing. But the risk gets way more magnified. Try and figure out your own risk-reward payoff
