Crypto Analyst: Why Memecoins Are Still The Next 100x Opportunity

6 months ago

Over the past weekend, determination was a notable emergence successful memecoin prices, driven by heightened societal buzz and accrued hazard appetite among crypto investors. The conception of a “memecoin supercycle,” which posits that memecoins volition pb the upcoming crypto bull run, gained traction connected X. In this context, crypto expert Kai (@Kaiwen0x) released a widely-shared article explaining the ongoing allure of memecoins arsenic a viable concern choice.

The Case For Memecoins In The Crypto Bull Run 2025

Kai argues that memecoins are poised to outperform the marketplace by 2025, suggesting that owning a “curated handbasket of memecoins” could let investors to surpass 99% of marketplace participants. “Outside of Bitcoin and stablecoins, memecoin is the lone class that has recovered a wide product-market fit. They harvester the champion features of an ICO (capital formation) and an NFT (community building) successful delivering a slayer product: global, permissionless speculation,” helium states.

The expert emphasizes that accepted crypto projects often juggle some merchandise improvement and token management, whereas memecoins absorption solely connected the token itself. “Memecoins removed the merchandise and made the token its full business, with the worth of the token deriving from the attraction generated by its community,” Kai explains. Citing information from crypto expert @MustStopMurad, Kai notes that successful 2024, 16 of the apical 20 tokens wrong the apical 300 that outperformed Bitcoin were memecoins.

Kai identifies 2 main outer factors which are important for a memecoin surge. First, the macro liquidity and involvement rates request to beryllium favorable for the full market: “The macro setup points to higher liquidity and little involvement rates successful the adjacent 12 months. Memecoins enactment arsenic levered beta connected Bitcoin, allowing you to seizure maximum upside successful a risk-on environment,” Kai explains.

Second, the expert references fiscal nihilism, a word popularized by Ikigai Investment CEO Travis Kling (@Travis_Kling). This mentation suggests that a emergence successful fiscal nihilism and the “YOLO” mindset is drafting much participants into speculative markets.

Internally, memecoins person shown they person a wide product-market acceptable and payment from what is known arsenic the Lindy effect—where the aboriginal beingness expectancy of immoderate technologies oregon ideas is proportional to their existent age, suggesting that memecoins are present to stay. Additionally, memecoins are peculiarly adept astatine creating and maintaining compelling narratives, a captious facet successful a marketplace driven by speculation and capitalist sentiment.

The Art Of Memecoin Selection

Kai delves into strategies for selecting promising memecoins, emphasizing the value of nuanced analysis:
Emotional Resonance: “I’m looking for memes that make a beardown affectional reaction. Is it funny, relatable, catchy, powerful, oregon memorable? The mean retail capitalist is going to beryllium the past marginal bidder of our magic net coins, truthful you request to bargain and clasp what they emotionally resonate with,” Kai explains.

Ticker Simplicity: Favoring elemental and almighty tickers, ideally 3 to 5 letters long, specified arsenic WIF, GIGA, and BULL.
Holder Count Growth: Monitoring dependable maturation successful the fig of holders arsenic an indicator of expanding adoption.
Wide Token Distribution: Preferring coins with wide organisation to debar centralization risks.
Resilience to Drawdowns: Identifying coins that person survived aggregate important terms drops and rebounded, indicating beardown assemblage support.
Active Community Engagement: Looking for an “active service of reply guys getting engagements connected X,” which signals a vibrant and engaged community.
Exchange Listings: Noting that announcements of centralized speech (CEX) listings tin importantly interaction a token’s valuation.
Absence of Insiders: Being cautious of coins with insider involvement, specified arsenic pre-sales oregon task superior backing, which tin pb to uneven playing fields.

Potential Risks and Invalidation Scenarios

Kai acknowledges the risks associated with investing successful memecoins:

Macro Regime Change: A important rebound successful ostentation oregon a reversal of monetary easing could invalidate the macro thesis for being agelong connected hazard assets.
Idiosyncratic Events: Events similar large speech hacks, regulatory shifts, oregon important marketplace collapses could disproportionately impact memecoins.
US Election Outcomes: “Counterintuitively, memecoins could underperform this rhythm if Trump wins the election,” Kai speculates.
Emotional Attachment: He cautions against becoming excessively emotionally invested successful immoderate 1 community, arsenic this tin unreality judgment. “Identity tin make affectional ties that unreality your judgement arsenic an investor.”

Kai emphasizes the value of knowing capitalist science successful the crypto market. “Ultimately, the question returns to: ‘What does the mean crypto capitalist really attraction about?’ It’s not the tech. It’s not the product. It’s the token—embodying greed and the anticipation of greater profit—that yet consumes this investor,” helium writes.

However, the crypto expert advises investors to stay vigilant and adaptable: “To debar getting wrecked, we request to show macro conditions for immoderate signs of a authorities shift. We indispensable besides support an oculus connected idiosyncratic events that could invalidate the thesis for investing successful immoderate circumstantial token.” Kai concludes, “Good luck, and for the emotion of dogs, don’t mid-curve this (still) 100x opportunity.”

At property time, WIF traded astatine $2.67.