In 1984, a Kit Kat advertisement featured a music executive telling a band that they couldn’t sing, play, or look good, but they would still go far. This sentiment can be applied to the appeal of memecoins, which are attracting smart people who are making money at the expense of those without good timing. However, trading memecoins is not a smart approach according to On Yavin, co-founder of Syndika. He believes that the recent interest in memecoins is driven by people looking for quick profits in the bear market.
Even though memecoins lack utility and fundamentals, smart people like Ethereum co-founder Vitalik Buterin have made significant profits from them. Buterin turned a $25,000 investment in Dogecoin into millions. Tom Mitchelhill, a financial journalist, finds memecoins fascinating both financially and culturally. He believes there is something about memecoins that attracts a large number of people.
When it comes to investing in memecoins, Evgen Verzun, director of Kaizen.Finance, suggests looking for the next big thing that hasn’t gained much attention yet. For example, PEPE, based on the popular crypto meme Pepe The Frog, gained significant market cap before experiencing a price plunge. The volatility of memecoins makes timing crucial for making profits.
Sara Jane Kenny, an Algorand ambassador and founder of OffChain Ireland, has a three-point plan for trading memecoins: research, patience, and efficiency. She looks for memecoins with strong communities and building utility. Harry Horsfall, CEO of Flight3, believes that being early in investing in memecoins is important for success.
Neil Bodl, founder of BodlNFT, sees memecoins as satisfying people’s need for entertainment and money. He believes that sophisticated traders can make serious money by embracing the entertainment aspect of memecoins.
Overall, memecoins attract smart people who are looking for quick profits and entertainment. While trading memecoins can be profitable, it requires research, timing, and a clear plan for taking profits.