Are most people here aware of the mechanics behind the “meme coin” phenomenon?
Basically it’s money-denominated PVP “player-vs-player” (in video games where you’re trying to kill other players, instead of monsters in the game), almost like poker really
Almost totally unregulated, and that’s both the appeal and why it works
I create a coin (trivially easy to do via a service like Pump.fun), it exists on Solana or another blockchain (thus crypto, vs say penny stocks on stock exchanges). It has a total supply, and I probably own all of it since I made it. Or I can strategically give away some of it to my friends, influencers, or other people (air drops).
Then it’s basically a game of market manipulation where insiders “sell” to each other at increasing prices, making it look like an active market. Sometimes with enough traction other sharks will come to play in this bloodbath and contribute liquidity
Eventually all the insiders start pulling out, often during a flurry of media that’s claiming “it’s really taking off, this is the next 1000x!” And really they’re just trying to get out at this currently elevated price, selling to rubes to just learned about this get-rich-quick opportunity
Once the insiders are out it all usually crashes because they were orchestrating the whole thing
Like 8 sharks at a poker table luring in one big whale, bilking him, then shutting down the game until they find their next target whale
People seem to like it! I don’t participate. I’ve mostly just held bitcoin. It’s in “crypto” but has very different underlying rules, history, etc. does not mean it’s not volatile and prone to scandal
Anyhoo, hope this helps folks who didn’t really understand what meme coins are all about
Basically it’s money-denominated PVP “player-vs-player” (in video games where you’re trying to kill other players, instead of monsters in the game), almost like poker really
Almost totally unregulated, and that’s both the appeal and why it works
I create a coin (trivially easy to do via a service like Pump.fun), it exists on Solana or another blockchain (thus crypto, vs say penny stocks on stock exchanges). It has a total supply, and I probably own all of it since I made it. Or I can strategically give away some of it to my friends, influencers, or other people (air drops).
Then it’s basically a game of market manipulation where insiders “sell” to each other at increasing prices, making it look like an active market. Sometimes with enough traction other sharks will come to play in this bloodbath and contribute liquidity
Eventually all the insiders start pulling out, often during a flurry of media that’s claiming “it’s really taking off, this is the next 1000x!” And really they’re just trying to get out at this currently elevated price, selling to rubes to just learned about this get-rich-quick opportunity
Once the insiders are out it all usually crashes because they were orchestrating the whole thing
Like 8 sharks at a poker table luring in one big whale, bilking him, then shutting down the game until they find their next target whale
People seem to like it! I don’t participate. I’ve mostly just held bitcoin. It’s in “crypto” but has very different underlying rules, history, etc. does not mean it’s not volatile and prone to scandal
Anyhoo, hope this helps folks who didn’t really understand what meme coins are all about
