In-depth Analysis of Memecoin: From Joke Product to 100 Billion Market Capitalization

In 2024, with Bitcoin breaking the $100,000 mark, Memecoin has ushered in a new round of prosperity. As a unique landscape in the Web3 world, Memecoin has evolved from a joke currency to a scale with a market capitalization of hundreds of billions of dollars, undergoing multiple stages of development and exhibiting multifaceted characteristics.

The Development History of Memecoin

Phase 1: Dark humor represented by DOGE

In 2013, DOGE was born, establishing the cultural foundation of Memecoin's straightforwardness, humor, and grassroots essence. Early Memecoins primarily focused on animals, heavily invested in charitable causes, relied on community dissemination, and mainly developed on the Ethereum chain.

Phase Two: The Expression Carrier of Web3 Culture

Memecoin types are gradually diversifying, expanding from animal coins to celebrity coins, political coins, and more. It has become a vehicle for expressing support and beliefs, with Solana becoming the main development battleground. Representative projects include BONK, BOME, etc.

Phase 3: Memecoin New Mode

With the emergence of issuance platforms like Pump.fun, Memecoins are showing two trends: one is the extremely downturned "vegetable market," and the other is the combination with new narratives that grant application value. Major public chain ecosystems are competing to launch similar platforms, which has promoted an explosive growth in the number of Memecoins.

The Dual Nature of Memecoin

1. Anti-seriousness, deconstruction of authority vs. technical nihilism
2. Low cost high return vs funding bubble
3. Attention Economy vs Loss of Control and Transience

How to Identify Quality Memecoins

1. Narrative: Does it have a supportive narrative for viral spread?
2. Community: The activity level of social platforms and community potential
3. Marketing: KOL matrix promotion, celebrity effect
4. Risk Review: Check LP token burn, contract ownership relinquishment, etc.
5. Market Performance: Expected market capitalization, liquidity, chip distribution, price trend
6. Smart Money: Focus on on-chain data analysis platforms and trading robots

Conclusion

Memecoins are like a carnival in the crypto world, born from mockery, challenging traditional notions, and becoming an undeniable force. In the second half of 2024, we see the potential for the integration of Memecoins with the Web3 ecosystem and AI technology. We look forward to Memecoins bringing new possibilities to Web3 beyond their rebellious spirit.

Investing in Memecoin requires caution, and it is recommended to follow the principles below:

• Familiar with using relevant technical tools
• Only invest what you can afford to lose, set a stop-loss.
• Diversify investments reasonably and allocate assets according to risk tolerance.