[00:00] Just recently, a Solana user made $2 million after investing just $62 in a meme coin. It's just one of many similar stories we've heard over the last few months.
[00:16] Now, at first glance, this looks like nothing more than dumb luck. A gamble that paid off. It really is gambling. Upon closer inspection, however, it's possible that there's a method to this memecoin madness.
[00:31] So today, we're going to do what many believe to be impossible. And that's to propose a memecoin strategy based on fundamentals that could turn a few dollars into millions.
[00:44] So, if that's what you want to do, then this is a video you have to watch till the very end. Now, I'll start by saying that nothing in this video is financial advice, and given
[00:57] the subject matter, I think I'll just say that again. Nothing in this video is financial advice. It's purely educational content that's meant to assist you on your crypto journey. I also want to explain why we decided to make this video.
[01:12] Basically, it seems that meme coins are becoming an actual, bona fide crypto niche in their own right. From our perspective, this was made official when the Avalanche Foundation announced it would begin investing in meme coins late last year.
[01:29] As crazy as it may sound, we think this marked a watershed moment that gave legitimacy to a crypto niche which has never been taken seriously within the industry itself.
[01:41] Now, some would argue that Elon Musk's support of Dogecoin was the real catalyst, but, well, let's not go there. Okay, so with that said, this begs the question of whether it's at all possible to perform
[01:55] any kind of fundamental analysis on meme coins. In other words, is it actually possible that a meme coin's specific characteristics increase or decrease the chances that it will see a massive return?
[02:09] We think that the answer is yes, and by the end of this video you'll know exactly how you can find meme coins that could turn you into a millionaire. And by the way if
[02:21] you're enjoying the video so far be sure to smash that like button to give it a boost. Now before we look at characteristics that are specific to meme coins we must zoom out and understand where they exist relative to
[02:36] other cryptos. Obviously meme coins are extremely high risk. They either go up by thousands of X's or they go to zero. It's very rare that there's anything in
[02:48] between. With the exception of Dogecoin, practically every single meme coin is a token on a smart contract cryptocurrency blockchain like for instance Ethereum or Solana. In practical terms this means that these meme coins are very much a
[03:05] part of the ecosystem of these cryptos and their names often reflect that membership. This is extremely important to note because it makes it possible to assess roughly when a meme coin could pump and possibly even by how much. Let's
[03:23] use Solana as an example here as it's been front and center in the recent meme coin craze. I'll quickly note that most of us here at the Coin Bureau hold Sol and ETH by the way. Anyways as most of you will know Sol started rallying like
[03:39] mad last autumn, presumably because of SBS' trial. Whatever the reason though, Sol's surprise pump caused investors to follow in with millions of dollars. These millions became
[03:51] tens of millions, and it's possible that these flows are in the billions now. What followed was what we see in the crypto market all the time, capital rotation. After Sol had experienced
[04:04] the sizable pump, some of those Sol investors started rotating their Sol gains into other altcoins in Solana's ecosystem, Helium's HNT being a notable example. Then, once all the blue-chip
[04:18] Solana ecosystem tokens had rallied, we started to see some more speculative plays take off. And what was the most speculative play of all? That's right, the Bonk meme coin. In the first
[04:30] two weeks of December alone, Bonk rallied something like 50x. Don't ask about its total 2023 returns. Now, of course, the flows aren't as straightforward as I just explained them to be.
[04:43] In truth, Bonk rallied alongside most of Solana's blue chip tokens. Even so, the basic principle of capital rotating out of large caps and into ever smaller and ever more speculative assets is how
[04:58] funds tend to flow in every market. How much these speculative assets pump depends on their market cap and not their price tag. Smaller market cap cryptos come with an inherently high risk,
[05:12] but also a higher reward. Large cap cryptos, on the other hand, are lower risk, but, well, the returns aren't always that big. Mid-caps are, of course, somewhere in between. It goes without
[05:25] saying that meme coins lie at the extreme end of the small market cap spectrum. Their micro market caps create an extremely high risk but extremely high potential reward This is why it wise to have a balanced crypto portfolio consisting of large caps mid caps small caps and micro caps
[05:48] More about how to construct a crypto portfolio in the description, by the way. So, with the big picture out of the way, we can now drill down into the specifics of the meme coins themselves. As you may have noticed, meme coins seem to follow different themes.
[06:03] For example, many name themselves after various forms of dogs or other animals, almost certainly because of Dogecoin. As time has gone on, we've seen other meme coin themes emerge, however.
[06:16] Most of these are directly related to actual memes, Pepe being an easy example. Others have related specifically to real-world events, which, if you think about it, could
[06:28] arguably be classified as more temporary memes. Now, I know this all sounds insane. In all seriousness, though, this reveals another extremely important thing. Most meme coins are copycats of sorts.
[06:42] Look at the biggest meme coins on any given smart contract cryptocurrency blockchain. Chances are that they're related to a dog of some kind, like Shiva Inu's, or related to internet memes like Pepe.
[06:56] For the time being, these seem to be the two biggest meme coin themes, but it's possible that we will see new ones emerge. It's possible that these new meme coin themes are likely to be more specific to the crypto ecosystem itself
[07:11] and could involve references to popular crypto slang like FOMO or FUD. It goes without saying that meme coins that are tied to temporary events are unlikely to make you lots of money unless you get in very early.
[07:26] Meme coins that are tied to more long-lasting popular ideas are much more likely to endure. But I'll remind you that we're dealing with a totally speculative asset class here. Put simply, anything is possible.
[07:40] And this ties in to the thing about meme coins that makes or breaks investors. Price action. If you look at the chart of almost every meme coin in existence, it follows almost exactly the same pattern.
[07:53] It starts with a massive speculative pump, followed by a crash, a couple of recovery pumps, and then a total flatline. As you might have guessed, this is because there are lots of degens and bots
[08:06] investing blindly into memecoins they find on DEX aggregators like DEX Tools to try and make a quick milly. Spoiler alert, that almost never works. These degens often get pumped and dumped on, and the result is what you see.
[08:23] Once a memecoin has flatlined, there are two possibilities. Either it goes to zero or it recovers. As I mentioned earlier, there's almost never an in-between. And in almost every case, it requires some big catalyst to wake a meme coin from its slumber.
[08:41] For most meme coins, this catalyst never comes. Newsflash, it's the flatlines you need to look for, not the parabolic pumps that come before or after. In theory, it's impossible to know if this revival catalyst will ever come.
[08:57] In practice, however, there are many things that you can look for which could, keyword could, increase the chances that it will. More on that in a moment. First, though, we need to understand where meme coins come from.
[09:12] Now, you can think of meme coins as falling into two categories, those that are coordinated and those that are community-driven. Coordinated meme coins are those that are created by famous people in the crypto industry, often influencers.
[09:28] Conversely, community-driven meme coins are, well, community-driven. Now naturally, the primary purpose of coordinated meme coins is to enrich the people who created them. These people will often set an explicit price target or market cap they want their meme coin to reach, and make that publicly known.
[09:48] This is a double-edged sword that you can wield depending on your risk tolerance. For instance, imagine there's a coordinated meme coin with a market cap of $1 million,
[10:00] and the people who created it have announced that they want to grow it to a $100 million market cap. It's almost guaranteed that this won't happen, because everyone will sell before that target, including them.
[10:16] Depending on your risk tolerance, you could still eke out a gain of 10 or 20x by riding the initial pump and being one of the first to exit. The thing is that you could make the same kind of gains on larger and more established cryptos with a fraction of the risk.
[10:34] In short, coordinated meme coins aren't worth it. By contrast, community-driven meme coins are typically created just for fun. This is very much up for debate as people who created meme coins often do so for the same reasons as influencers, to make money fast.
[10:52] Then again, there have been cases where the motivation was apparently genuine fun. It seems there have been cases where meme coins were created purely to attract users and investors to a particular blockchain, but we'll come back to that later.
[11:08] Anyhow the key thing to look for in a community memecoin is genuine community involvement and development If you see that there are dozens of people putting in hundreds of hours of work into promoting a meme coin and building whatever it promising to be that certainly
[11:26] a good sign. An even better sign is when the original founder or development team steps away from the meme coin entirely without destroying it. This is a good sign because it essentially
[11:38] opens the door to listing on centralized exchanges in the United States, something which some meme coins have managed to do. Pro tip always check to see how the meme coin is
[11:51] distributed using a blockchain Explorer. If you can see that most of the supply is held by just a few regular wallets then it's probably a pump and dump. If you can see that the supply is fairly spread out then it increases the chances
[12:06] that it's not a total rug pull. And this relates to the catalysts that can wake a meme coin from its slumber and the catalysts that can cause a meme coin to hit new all-time highs and generate the kind of life-changing returns we read
[12:21] about in the crypto news. Now the slumber awakening catalysts are straightforward basically something related to the meme coin and the classic example here is of course Elon Musk referring to anything dog related on Twitter aka X. This almost
[12:38] always causes dog-related meme coins to rally, even if they've completely flatlined. Similarly, a sudden rally among similarly themed meme coins could be enough to cause other, smaller ones to pump.
[12:50] Come to think of it, this seems to have been the catalyst for most of the recent meme coin rallies we've seen lately. It's the answer to the question of where the capital rotates after it's exhausted
[13:02] the most speculative asset in an ecosystem. There is only one answer, new meme coins, often in other places. Anywho, when it comes to the catalysts that could cause a meme coin to hit new all-time highs,
[13:18] these are often sequential in nature. First, something happens that's related to the meme coin's theme or the meme coin niche in general. Next, something happens that's related to the meme coin specifically.
[13:30] This something is often a listing on CoinMarketCap or CoinGecko or both. Now, believe it or not, but listing on crypto price tracking websites is a massive milestone for meme coins.
[13:45] That's just because it signals that they're legit enough to be searchable on these platforms, which actually have listing standards. More about all that in the description, moving on. Now, once a meme coin has been listed on a crypto price tracking website, the next catalyst
[14:02] is typically a more meaningful development from the meme coin itself. This can be the introduction of some NFT collection, a change to the crypto's tokenomics, or even a partnership with a bigger crypto project.
[14:16] Assuming a meme coin gets enough traction from these more meaningful catalysts, then it opens the door to the biggest catalyst of all, listing on centralized exchanges.
[14:28] This catalyst is likewise broken down into stages. Lesser known exchanges will often be the first to list meme coins with little scrutiny in order to be the first to grab those trading fees, of course.
[14:41] Then, larger and better known exchanges will list the meme coin, and finally, the largest and best known exchanges of all will follow suit. From what we've seen, listing on a US crypto exchange seems to mark the local top for most meme coins.
[14:58] This local top will probably be the all-time high for most of them. If you bought a meme coin when it flatlined and held all the way until this last catalyst, you've probably made a few hundred X or more.
[15:12] Unless there are fundamental reasons to hold the meme coin beyond this catalyst, it's prudent to take some profits and accept that your millions won't become billions. If you want to make sure you don't get wrecked by fees when this happens, by the way,
[15:27] check out the Coin Bureau deals page. It's got trading fee discounts of up to 60% and sign-up bonuses of up to $40,000 on the best crypto exchanges. This deal is available for a limited time only, folks, so take advantage of it now before it's too late.
[15:42] The link will, of course, be in the description. Okay, now let's pull all of this together. Here is how you find a meme coin that could make you millions. Step 1. Find a smart contract crypto ecosystem that's started to pump,
[15:58] one where capital is already starting to rotate into blue chip cryptos. Note that this doesn't just include layer 1s, but also layer 2s. Step 2. Find the meme coins that fall into whatever the biggest meme coin themes are.
[16:15] You'll recall that the two biggest meme coin themes these days are dog themed and meme themed, specifically Pepe, by way of example. Try and find meme coins that are analogous to those. You'll recall that you can use Dex tools for this.
[16:32] Step 3. Check to see if the price of the meme coin has flatlined. If it's pumping, then you're probably already too late. At the very least, you won't have any idea when to sell,
[16:44] and that means you'll ride the rocket ship down just as fast as it went up. In this case, it would be wise to wait until things calm down. Step 4 Do some due diligence to see whether the memecoin is coordinated or community This should be fairly easy to deduce by looking at the meme coin various social media channels and github
[17:06] if applicable. I'll remind everyone that it's possible to buy followers so don't be fooled by large numbers. And pro tip, see what the engagement is like instead. Step five, ask yourself
[17:21] which catalysts, if any, could realistically wake your meme coin from its slumber. You'll recall that any mentions of the meme coins themselves, or even just the theme, could be sufficient to
[17:34] cause a pump. With a bit of luck, there will be a clear upcoming catalyst that you can identify. Step six, assess what caliber of crypto exchanges the meme coin could list on, given its characteristics.
[17:47] I'll remind you that lesser-known exchanges have a habit of listing meme coins regularly. What you need to assess is whether this meme coin could ever be listed on a much larger exchange, preferably a US one.
[18:02] And finally, when this meme coin does list on some better-known exchange, ask yourself whether it would be prudent to take some profits. If you invested a few hundred dollars and are sitting on six figures or more, well, it's safe to assume that you've made most of the potential gains on this meme coin in percentage terms.
[18:22] As you'll come to find, the hardest part about making these gains will be keeping them. If you sell and that meme coin happens to keep rallying, you'll likely be tempted to FOMO back in. Alternatively, of course, you could end up spending most of the money you make aping into other meme coins.
[18:39] Well, don't be greedy. Accept victory. And better yet, put that money to use by investing it in things that will earn you a passive income. These could be dividends from stocks, yield from bonds, or even staking rewards.
[18:54] And, with enough capital, your money will work for you, if you let it. I have a friend who managed to semi-retire this way. He knows who he is. now to wrap things up
[19:07] I want to put things into perspective some believe that the hype around meme coins ultimately has its roots in the fact that people are just so fed up with the financial system that they're happy to throw money into the void
[19:20] and see if a bigger pile gets thrown back at them if this is indeed true then it's unfortunate because it means this trend will only accelerate as the futility of the existing financial system
[19:32] becomes more apparent to the average person. The fortunate thing, if indeed you can call it that, is that it will establish meme coins as a serious asset class within the crypto market.
[19:45] This will hopefully result in some positives, such as a more vibrant crypto community and a few more millionaires being made along the way. But what if the hype around meme coins isn't the middle finger to the financial system
[19:59] that many make it out to be? What if it's just the consequence of the rampant speculation that's been caused by all the money printing, or even just been orchestrated as a means of increasing engagement for crypto projects?
[20:14] If it's the former, then that means an environment of higher interest rates, if it comes, could effectively erase meme coins as a crypto niche. The same could happen if DeFi is targeted by regulators, something you'll know is ongoing
[20:29] if you watched our recent video about IOSCO's global DeFi recommendations. If it's the latter, however, then we've got even bigger problems because it's only a matter of time before someone figures out
[20:44] who's been manufacturing these neem coins and coordinating their growth while giving the illusion of a community effort. This could likewise come with a whole slew of regulatory issues.
[20:56] These and other facts and possibilities are why it's best to focus on high-quality crypto projects with small market caps Crypto projects that could turn hundreds into millions with a fraction of the risk
[21:10] And what if I told you that there's a place that you can go to get this kind of alpha? Well, that's exactly what the Coin Bureau Club is for Members get weekly small and mid-cap altcoin reviews and even get to vote on which altcoins we cover
[21:25] They also get access to an exclusive research feed where the team shares insights about promising crypto projects and narratives. And best of all, members get access to an exclusive Discord where they can discuss these promising crypto projects and narratives with the team, including yours truly, and with each other.
[21:44] As a cherry on top, members are given access to exclusive deals, monthly giveaways, and occasional AMAs. And did I mention you get to see all the cryptos we hold in our portfolios too?
[21:57] So, if this sounds interesting, then become a member of the Coin Bureau Club by using the link in the description. Be sure to sign up soon because prices will rise on the 15th of January. Chop, chop, as they say.
[22:10] And that, folks, is all for today's video. So, if you learned something new, let us know by smashing that like button. If you want to keep learning, subscribe to the channel and ping that notification bell. If you want to help others learn, then take a second to share this video with them.
[22:24] Thank you all so much for watching, and I'll see you in the next one. This is Guy, over and out.