😐 Memes Take Over the Crypto Market or Even the World
Why have memes attracted 70% of the total trading volume in the crypto industry and why will they continue to grow in 2024?
Recently, hedge fund Gotbit shared their thoughts on this. Let's go over the main ideas.
😀 Tier-1 Projects Lose Their Appeal
In the past, the strategy of "buy at listing" worked great. But in 2024, things have changed. For example, the $W token fell by 85% after listing 📉
The reasons are simple:
Projects raise 4-5 VC rounds BEFORE listing, starting with Pre-seed at $10M and up to Series-B at $1B+. Then they list at $2B-$15B+.
VCs have enormous liquidity and the ability to sell on OTC with a 30-50% discount.
😀 Memes Attract Retail
Retail investors are losing trust in large projects and moving to memes. Stories of someone investing $100 and making $100,000 attract retail. In memes, retail is not just exit liquidity but finds its chances for success.
😀 The Appeal of Memes
Memes are an expression of pop culture. A cool picture, organic community, and a catchy phrase attract retail much more than technical advantages.
Example: the $WIF token with the phrase "Does this dog still a Hat?" gained popularity thanks to its simplicity and humor.
#wifhatdog 😀 Rapid Learning of Retail
While memes can be complex to understand, retail learns quickly. Coins of celebrities and rappers, which attracted millions of dollars in the previous cycle, are no longer as popular. Retail understands that cultural significance is as important as technology.
🪙 The Future Belongs to Memes
Memes will continue to dominate as long as retail finds maximum benefits in them. In the next cycle, VCs and project founders might realize the importance of creating culture and organic community. But for now, the time of memes continues.
As one of the richest people on Earth, Elon Musk, said:
👤 "Memes are power"
So, the future belongs to culture, organic communities, and of course, cute cats and dogs 😔
#shiba⚡ #pepe⚡ #Wite2Earn #EarnFreeCrypto2024