Investing in meme coins is not a stroll in the park if you want to hit it big and earn good returns on your investment. Meme coins have risen in popularity in recent times, all thanks to Elon Musk and his antics with Dogecoin. It is important to know that most of these coins are scams and are there to defraud unsuspecting people of their money. Therefore, if you want to put your money in meme coins, you need to be very careful and seek out the right information to guide your choice.
Finding a meme coin with 1000× potential is like looking for a needle in a haystack. However, with the right guidance, you can know how and where to look for the rare gem that will hit the moon. The boom in the crypto market in 2021 led to the proliferation of new tokens almost on a daily basis. Most of these new coins vanish within few weeks of their launch, leaving a trail of “bleeding” investors in their wake.
However, the meteoric rise of meme coins like Dogecoin and SafeMoon is evidence that investors can make good money. All you need is the ability to identify the tokens with huge potential early enough. In fact, it is possible to have 1000× on investment in the crypto space but only with good research into meme coins.
How to avoid Rugpulls and minimize risk
When investing in meme coins, avoiding rugpulls is also as important as identifying the right coin. With my experience in analyzing lots of crypto projects, I can tell the signs of s crypto rugpull. This observation is primarily for coins launched on DEXs like PancakeSwap and Uniswap.
Study the initial token distribution
Developers of new tokens have the power to distribute the initial token supply the way they want. Most times, you see these dev teams give a huge chunk of the tokens to themselves and, in some cases, to a crypto celebrity. When you see such things, you need to tread with caution. Since these people did not buy in like the rest of the investors, they can dump their holdings at any time. The best option is to go for tokens put up on PancakeSwap or Uniswap for anyone and everyone to buy.
Ensure you know who owns the liquidity pool
For the scam meme coins designed to defraud investors, you see the developers owning the entire liquidity pool. The implication is that these developers can remove the whole pool, including the ETH and BNB, inside the pool. This is a perfect setup for painful rugpull. The majority of the liquidity pool should be held by the burn address designated with something like “oxoooo…”
Investors should also be wary of tokens that have high transaction fees, as this is likely a ploy to discourage people from selling their coins.
The Search for Meme coin with 1000× Potential
When investing in meme coins, maximizing the reward should be the utmost goal. Therefore, to achieve this goal, you have to substantially reduce risk by eliminating rugpulls and then identifying the coins with the potential to reach the moon. Things to look out for include:
The mission of the dev team
Create time to hang out in the token’s community to know what the dev team always talks about. If they talk about long-term focus and community building, then that’s a good sign. You should stay away if they are always talking about pumping the price and pressuring people to buy. Check if they have a whitepaper with a real and actionable vision and mission.
Is the meme coin cute with real potential?
The fact is that cute tokens often always win the market share because people love to buy adorable tokens. Those who follow Dogecoin must have learned not to underestimate the potential of a memorable puppy.
Some promising meme coins to consider
Following the above analysis, here are a few meme coins with good potential to invest in.
- BabyDoge - deflationary meme coin that is designed to be scarce with time. It is cute but also comes with a lot of BITE!
- MiniDoge - first auto-boost and hyper deflationary coin in the crypto market.
- CorgiCoin - one of those coins that is exclusively community owned. All the tokens are locked on PancakeSwap and the keys are burned.
- CateCoin - a special coin designed to be used on meme platforms where meme creators get paid in CateCoin after submitting their memes.
“1000X is just a dream to many, it has a lot of risks that comes with it. You need to study the project properly from its team members to their tokenomics. You have to ask them where are their revenue streams too. Lastly, look carefully where they are listed. Some exchanges are safer, more reputable than others. Always do your own research." Anndy Lian, Chairman for BigONE Asia and Chief Digital Advisor for Mongolian Productivity Organisation commented.
Disclaimer: The information contained on this article is provided for educational purposes, and does not constitute investment advice.