Meme coins still bring profits, but it’s not for everyone. Investors told crypto.news how much they could profit from the meme coin hype.
Meme Coin recorded an impressive average return of 1,313% in the first quarter. And this sector does not even cease to grow and bring millions of dollars in profits to traders.
It is natural for prices to rise significantly in a matter of days or weeks. But what is all this about?
What is a meme coin?
Meme coins are a type of cryptocurrency that enjoys popularity directly related to internet memes and viral marketing on social networks. Typically, they were initially created as a joke with no practical function.
The first and most famous token was Dogecoin (DOGE), launched in 2013 based on the popular Shiba Inu dog meme. DOGE was initially intended as a parody of Bitcoin (BTC). However, over time, these assets have earned billions of dollars in capital.
The main differences between meme coins and traditional cryptocurrencies such as Ethereum (ETH) or Bitcoin are the lack of intrinsic value and emissions limits. Their cost depends entirely on demand amid the internet boom, and because of this, meme coins are characterized by increased volatility.
However, recently there has been a trend to give meme coins more practical meaning. For example, developers of Shiba Inu (SHIB) and FLOKI are creating their own metaverse, NFT platform, and education ecosystem based on these assets.
Million Dollar Revenue – Trends of the Year
The number of minted meme tokens is growing with enviable regularity and traders are making fortunes through it. But such success is often short-term and random. In the long run, as internet popularity declines, the value of most meme coins tends to go to zero.
Perhaps the people making millions from meme tokens have inside information. Otherwise, how would these traders and investors know that the price of a particular meme coin will show a rapid rise? The editors of crypto.news spoke with traders who could benefit on condition of anonymity.
frog investment
Members of the Pepe (PEPE) cryptocurrency community are celebrating a new all-time high for the frog token. Meanwhile, one user said that thanks to PEPE, he increased his income from $90 to $1.4 million.
In mid-April 2023, a trader purchased nearly 6.5 trillion PEPE on the Uniswap cryptocurrency exchange just for fun. Since the initial investment was small, the trader decided not to sell the tokens and wait and see what would happen to them.
This decision turned out to be the most correct. In May 2024, 6.5 trillion PEPEs made an anonymous trader a millionaire. However, a user with the nickname Mina said that he has no intention of selling PEPE and now believes that the price of the frog coin will one day exceed $1.
“Sometimes I leave a note saying I want to sell PEPE but don’t rush it. “The memecoin market has not yet reached its peak, and there is a high possibility that my PEPE will make me a billionaire within a year,” he said.
anonymous trader Mina
Strong faith in dogs and love for hats
A trader from the Meme Coin Telegram community shared an impressive story about Dogwifhat (WIF) coin profits. However, this case is different from the inspiring stories of traders whose coins grow 1000x in an hour.
An anonymous trader used a different strategy called HODL. He purchased WIF in December 2023 and analyzed the overall activity of the Solana network and the growth prospects of the cryptocurrency market.
After evaluating all risks, the trader purchased approximately $500 worth of tokens, hoping for further growth. As a result, he earned about $15,000 just by keeping the assets on his balance sheet.
“I have heard stories of traders starting with just $100 and making billions of dollars in profits. However, as an active participant in the cryptocurrency community, I believe these stories are the exception to the rule. “The meme coin market is still very opaque and confusing, so any touching stories about traders are likely simply insider trading.”
Meme Coin Community Member
more conservative
Another cryptocurrency community member nicknamed Andilet advised caution when investing in meme coins and shared his asset diversification strategy. He advises dividing your cryptocurrency portfolio by risk level, with 10% of your portfolio comprised of high-risk, volatile coins, including meme coins.
Despite the high risk, it seemed appropriate to allocate a portion of the portfolio to meme coins. This is because meme coins are more likely to provide significant returns.
“In general, it is difficult to predict how the meme coin market will behave in the long term, because in memes everything is very dependent on hype and its level is also difficult to predict.”
Andiret, SHIB investor
He invested in Shiba Inu in the summer of 2023, spending about $5,000 to purchase the coin at a price of $0.0000077. Now that the SHIB rate is $0.000025, his net worth is about $50,000.
“For meme coins, we believe an individual approach to each project is important. “By looking at the project closely, we can guess short- and medium-term trends,” he said.
Andiret, SHIB investor
Summary: To invest or not to invest?
Investing in meme cryptocurrency carries significant risks. This can result in solid profits from speculation, successful exit points, and complete capital losses. The most important thing is to be able to monitor social networks, read news and search for information. And the first time a journalist mentions a meme coin, they are trying to get it.