Memcoins – how can I make money on HYPE?

The current hype of memcoins has gained terrible momentum, the crypto space is filled with conversations only about this. In today's article, we'll look at what memcoins are, who makes money from them and how, why they should be listed on exchanges, and most importantly, what we should do with you.

What are memcoins?

It is basically a cryptocurrency without any value or method of application. The sole purpose of memcoins is to bring earnings to the creators at the expense of hamsters.

How does it work?

It will not be difficult to create such a token, in fact, absolutely anyone can do it in less than 30 seconds.

Next comes marketing, projects attract users through advertising, hype, and shill from celebrities and influencers. They advertise various kinds of scams, including rug pools, etc. For example:

Rapper The Game and mixed martial artist Dillon Denis Pin Baby Dinger Memcoin:

Rapper Rich Kid advertises the Ancient Cats Club. Shortly after launch, the team stole over $1.7 million. This project eventually turned out to be enough to make friends among the TAI tribe, such as the Bored Rabbit and the Rich Dwarf Tribe.:

Why do we need memcoins?

Earnings for creators

As we mentioned earlier, the main purpose of creating memcoins is to earn money for their creators, insiders and, sometimes, for random people who are just lucky.

Because it is almost impossible to analyze the chart, find an entry point, or understand why the token will grow, and at any moment the token can make -90% in less than an hour.

Why do exchanges need such scam projects?

Again, like the project itself, exchanges just want to make money from you. Imagine how large a community there can be around a hype project — this is a potential source of liquidity for exchanges.

Exchanges earn a lot of money on commissions on each trade, and they also don't care if the token goes up or down. And on some (tier 2-3) exchanges, such projects can even pay for the listing of their token.

The life cycle of an average memcoin

Early Phase

The phase immediately after the appearance of the token, if you are at this stage, you really have a chance to earn, because memcoins usually work like a Ponzi scheme.

The growth phase

The market maker increases the volume so that the token goes to the top (on DEX or CEX), in parallel, a marketing company can start in the social network. social media, often on Twitter. The project is gaining hype, the token is being mentioned more and more, and more and more investors are noticing it, which is causing an even more significant price increase.

By the way, in this phase, an unrealistic increase in gas prices begins, for example, over the past 7 days, the annual deflation of ETH has reached 2.66%, and almost 75k ETH has been burned.

The FOMO phase

At this stage, the coin is at the FERMi level at the peak of its popularity on social networks. Less experienced investors (hamsters) start buying it for fear of missing out on potential profits. In most cases, this is the final pool of liquidity for the creators of the project, at this stage everything ends.

How can we make money on memcoins?

Due to the inability to analyze the chart properly, find an entry point or fundamental, it is even more dangerous to enter into memcoins than into any other transactions.

Of course, you can try to buy in the early phase for some pennies (which you wouldn't mind losing at all), but remember that not all memcoins go through each phase, sometimes everything ends before it starts.

The best strategy may be to try to get an Airdrop from such projects, because free tokens are an excellent choice. Here it is important not to forget about the security of the wallet, either use empty wallets, or make a revoke immediately after the stamp.