Foresight Ventures Research: “Meme Coin” Investment Law Review Report | Dynamic Trends – The Most Influential Blockchain Media (Bitcoin, Cryptocurrency)

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Foresight Ventures Research: “Meme Coin” Investment Law Review Report | Dynamic Trends – The Most Influential Blockchain Media (Bitcoin, Cryptocurrency)
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The hype elements of meme coins include attention, small market value, and narrative consensus value. (Additional background:The topic of meme coins has gone down!Dogecoin, Shiba Inucoin Google search popularity drops to the lowest point in more than a year)

fanThe coin concept has become one of the most talked about investment opportunities in the cryptocurrency space. According to CoinGecko statistics, there are about 200-300 projects on the memecoin track, with an overall market value of about $16 billion. Normal projects have a high probability of 5-20 times the return in the bull market, while DOGE rose 400 times and SHIB rose 500,000 times, all entering the top 20 of the overall market value.

To a certain extent, it can be said that the success of DOGE and SHIB is the realization of meme culture.

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Figure 1: CoinGecko’s meme category images

2. The Hype Element of Memes

Chart 3: SHIB price performance picture in October 2021

3. The Meme Rotation Cycle

The difference in certainty is the reason why Memecoin’s rotation cycle is in the middle to late stages of a bull market.

We often see such a cyclical pattern: cash → mainstream currency → popular sector → future concept → meme currency → cash.

If it is the last bull market cycle, the corresponding investment route is: Cash→BTC/ETH→Defi/L2→Gamefi/Metaverse/NFT→DOGE/SHIB/Animal Currency→Cash.

If you had Buffett’s amount of cash on hand, would you choose to grow steadily by 20%, or would you risk losing all your principal and go for 10x? Obviously the former.

The choice of big money in a bull market is similar: it all prioritizes certainty.

When BTC is rising, why divert funds to other currencies? This is the reason for the BTC blood-sucking phenomenon: the difference in certainty. When BTC does not rise or trade sideways, big funds in the bull market will flow out and choose hot sectors with high growth potential. The reason is that the same benefits can be achieved with less capital, and the risks are relatively controllable.

Therefore, when the overall market value of cryptocurrencies rises and the domination rate of BTC declines, it is the critical point for the rise of the meme coin masters to take off. Similarly, after the popularity of meme coins skyrocketed, it was difficult for the market to make money for a month or two.

Figure 4: Crypto market sector rotation

4. Meme Investing Ideas

Meme coins are characterized by high volatility. 10 times, then cut in half. 10 times more, and then cut in half. A meme coin that is out of the circle will rise more than 10 times for the first time, and there will be a second surge in 2 weeks to 2 months. So timing is especially important for meme coins.

5. Risk control

Divide the funds on the floor into two parts, the Stud Meme Coin part and the basic operation part.

When to use the stud part? When you think you can earn at least 50%.

The correct selling position of meme coin is usually after the daily K line has risen by 20% for two consecutive days, or doubled by half, and it is always profitable to sell flying.

Soros said, “The history of the world economy is a series based on falsehoods and lies. The way to get rich is to recognize the falsehoods, get into them, and get out of the game before the falsehoods are known to the public.”

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Meme rush to buy “LUNC trading volume soared four times and then rose by 69%! Kucoin was temporarily suspended due to “sold out”

Born from a meme! CryptoDickbutts NFT Soars “Daily Trading Volume Soars 784%”

American college students invest in meme stock BBBY, making a huge profit of NT$3.3 billion in one month

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