Navigating Memecoins: How to Choose Anti Rugpull Memecoins in 2024

Following the dominance of WIF and BONK in Solana’s memecoin landscape, newcomers like BOME, SLERF, NIBBA, and others have recently emerged with the concept of pre-sales. One trader even secured a profit of $3,3 million (approximately Rp51 billion) instantly! However, another trader also lost Rp1,2 billion due to a sudden drop in SLERF’s price. In the volatile world of memecoins, significant opportunities for gains and losses can happen quickly. This article aims to delve into strategies for selecting the right memecoins and identifying those with potential for the future.

Article Summary

• 🪙 Recently, pre-sale memecoins have emerged on the Solana network, including BOME, SLERF, NIBBA, and others.
• 🪴 Solana is becoming a major platform for trading memecoins due to its low transaction fees and the presence of DEXs like Jupiter.
• 👨‍💻 When selecting the appropriate memecoin, it’s crucial to consider factors such as the credibility of the development team, community engagement, potential rug pull risks, and blockchain activity levels.
• 🐸 Despite their inherent risks, certain memecoins have promising prospects. Integration with new technologies like DeFi and the metaverse, coupled with enthusiastic community support, can substantially enhance the value proposition of memecoins.

Current State of Memecoin

The memecoin narrative has recently become an interesting topic among the crypto community. Crypto such as BTC, ETH, and other altcoins are already rated as high-risk assets. However, memecoin carries the highest level of risk and has become the most speculative asset.

The Book of Meme (BOME) memecoin pre-sale on Twitter by the @Darkfarms1 account instantly generates huge profits for its users. If you put in Rp10,000, it will become Rp1 million at its peak!

The craze of the token pre-sale system is growing, and many accounts are doing the same. An unexpected incident happened with the Slerfsol (SLERF) pre-sale memecoin. SLERF developers accidentally burned over $10 million worth of tokens that were supposed to be distributed to users. However, SLERF tokens on DEX surged and reached a trading volume of $2 billion in 12 hours!

Before this, significant memecoin price increases occurred for PEPE, WIF, DOGE, SHIB, BONK, and several other memecoins. One catalyst was the approval of the Bitcoin ETF which not only elevated BTC to new ATH but also fueled the resurgence of memecoins.

Solana has become the leading platform for trading memecoins due to a large number of daily active traders on DEXs like Jupiter and low transaction fees. These two factors make Solana a trading hub for small-cap assets. BOME and SLERF are two new memecoins that have successfully launched on Solana.

Read more about Jupiter in the article What is Jupiter (JUP)? Solana’s Largest DEX Aggregator.

As of December 2023, the number of traders on Solana’s DEX has continued to increase. The image above shows the number of traders on Solana, which has surpassed Ethereum. WIF and BONK control the memecoin market capitalization on Solana.

How to choose a memecoin project

There are thousands of memecoins available today, especially on the Solana network, since the recent rise of the token pre-sale concept. To choose a memecoin project that has the potential to be profitable, you need to pay attention to the following:

Development team

When selecting memecoins, it’s crucial to focus on the development team. Assess the team’s reputation, experience, vision, and level of engagement in the project. For instance, if a developer has created NFT A and subsequently launches memecoin B, evaluating NFT A’s performance can help inform your decision about investing in memecoin B from the same developer.

Community

Pay attention to how active and diverse the project’s community is. The most influential fundamental for a memecoin is the community. In a strong community, members share information as well as their experiences with the project and share memes to keep the atmosphere fun.

It would help if you saw how big a memecoin community is on its various social media platforms, such as Discord, Telegram, Twitter, and Reddit. Notice if there’s a lot of communication activity or if the platforms have no interactions.

Check rug pull potential

You can check the rug pull potential assessment of a memecoin on Solana via https://rugcheck.xyz/. This platform can help you get information about smart contract analysis, liquidity verification, developer team checks, and the risk rating of a memecoin.

Monitor activity on the blockchain

Most memecoins are not listed on CEX so you can monitor them on DEX through tools like DEXTools. On this platform, you can find a list of all liquidity pools for whatever memecoin you’re looking for.

This platform can prove highly valuable for assessing the market status of the memecoin under analysis, including examining its trading volume, major liquidity providers, and other relevant metrics.

Fundamental analysis of memecoins

While memecoins are just joke, some memecoins serve as entertainment coins and have use cases within their ecosystems.

Pepe (PEPE)

Pepe is the most widely used meme in the crypto community. It has a big community and social media followers. This could be one of the factors driving the price of PEPE up. On Twitter, Pepe has a following of 620k, and on Telegram has over 52k members.

As depicted in the image above, on March 10, 2024, the hourly purchase of PEPE surged to $381,510. Currently, according to DappRadar, the hourly trading volume of PEPE has soared to $1.5 billion! This surge in transactions happened at the end of February 2024. There are approximately 189,929 PEPE holders, with the largest being associated with one of the well-known CEX.

Another factor affecting the price of PEPE is that the project rewards its holders by distributing 2% of each transaction fee to all existing holders proportionally. This incentivizes users to hold tokens for longer periods and earn passive income.

In addition, PEPE has been integrated with various platforms and services that increase its utility and adoption. For example, PEPE can be used to purchase NFTs on OpenSea Pro, play games on Pepe Casino, earn interest on Compound, and swap tokens on Uniswap.

Bonk Inu (BONK)

Just like PEPE, Bonk Inu (BONK) memecoin also has its selling point. In the last 14 days, from March 17, 2023, BONK transactions reached 6 million. At the time of writing, BONK’s hourly trading volume reached 303 million US dollars with 670,185 token holders.

BONK is one of the pioneers of memecoin on Solana and catalyzed the memecoin season on Solana in the past. Bonk also has a fairly complete ecosystem as a memecoin. BONK is integrated with DeFi, gaming, and NFT dApps such as BONKSWAP, BONKbot, OpenBonkSwap, and Bonkcoin NFT. Blockworks researcher Dan Smith said on his X account that Bonk might be a tech company wrapped in memecoins.

Shiba Inu (SHIB)

At the time of writing, Shiba Inu (SHIB), the second largest memecoin, has an hourly trading volume of $1.9 billion with nearly 1.4 million token holders. That’s a pretty fantastic number for a memecoin. In the last few hours, SHIB has transacted 12.3 million transactions.

Shiba Inu (SHIB) is touted as the ‘Dogecoin killer’. It differentiates itself from Dogecoin by developing its ecosystem. The Shiba ecosystem includes Shibarium, Shib the Metaverse, Shibacals, ShibaSwap, and Shiba Eternity. It gives Shiba Inu more usability and technical potential.

Memecoin Potential

Memecoin, an entertainment-oriented token, has seen its value surge due to online hype. Its attraction lies in its notable price fluctuations, providing investors with the potential to capitalize on significant profits quickly.

The current memecoin community looks for memecoins on new blockchains that offer transaction speed and low fees, such as Base. In addition, due to the high transaction volume of memecoins on a blockchain, memecoins are also an indicator of high activity on the blockchain, such as BONK on Solana in Q4 2023.

Despite having the highest risk among other crypto asset categories, some memecoins have potential in the future. Integration with new technologies such as DeFi and metaverse could add significant value. In addition, the vibrant community around memecoins may be a source of innovations that lead to the development of more powerful features.

Dogecoin (DOGE) is one of the pioneers of memecoin. Presently, it reigns as the largest memecoin with a market cap of $21.8 billion, securing a spot in the top 10 cryptocurrencies. Reports have surfaced indicating that DOGE may soon be accepted as a form of payment for purchasing Tesla cars, paying school fees, and other transactions.

Certain memecoins have established their own ecosystems and are actively enhancing them by integrating their tokens. For instance, the MEME token, originating from 9GAG, operates within the Web3 platform called Memeland. The development team at Memeland is currently crafting a metaverse named Treasure Islandz, potentially making MEME tokens a viable form of payment within it.

Conclusion

In recent developments, memecoins have become a topic of interest among the crypto community, offering high opportunities for quick profits. Phenomena such as the pre-sale of BOME and SLERF tokens reflect the craze in the memecoin market.

Choosing the appropriate memecoin requires careful consideration of various factors. These encompass evaluating the development team, assessing the community engagement surrounding the memecoin project, and scrutinizing technical aspects such as rugpull potential and trading activity on the blockchain.

Despite their inherent risks, memecoins offer the potential for significant returns with prudent analysis and a dash of luck. Therefore, make sure you do your research thoroughly to avoid financial losses from memecoin.

References

1. 0xkyle, Manical Memecoin Meta, Substack, accessed 19 Maret 2024.
2. Ally Zach, Navigating Memecoin Mania, Messari, accessed 19 Maret 2024.
3. Franklin Templeton Digital Assets, The Value Between Meme Coins and Their Native Networks, X, accessed 19 Maret 2024.