Shitcoins
It’s been at least three months since the FOMO began, and the shitcoins show no sign of stopping.
Countless people making X amounts of gains, and still we continue to laugh at what we see as scams and money grabs, confident in the knowledge that our projects are better than theirs, and that the bubble will surely burst.
It all starts to feel familiar…
Are we the boomers now?
The crypto elite loves to laugh at shitcoins, and the stupidity of those who invest in them. We all know that cash grabs and scams are rife in crypto, so why do we keep on repeating ourselves?
Perhaps it’s a type of virtue signalling, a way for community members to emphasise that they would never be involved in such low quality affairs. However, we’re all here to make money, and if TikTok investors are making more than the maximalists, then who is really winning?
Meme coin investors are making millions from coins that serve no purpose.
We’re back in the ICO boom of 2017, but 10 second videos have replaced the whitepapers, and projects are being launched with even less effort, but perhaps a bit more honesty.
Projects like Safemoon, Scamcoin, $Ass or $Cummies barely pretend to serve a purpose, but they still bring in millions of dollars in minutes, as everybody tries to be early into tokens solely built to gain attention.
One week ago, Andre Cronje wrote “Bull market, Bear development”, and the Safemoon Github is evidence of his theory. A single solidity file with just two commits made on the same day was enough to build a token with a market cap in the millions, and FDV in the billions of dollars.
The growth of the TikTok Investors Twitter account (105,000 followers in ~8 months) is probably in no small part due to the fact that people enjoy feeling smarter than others. On that note, perhaps the founders of the account are stocking up on tokens before publishing the videos..
Meme coin investment is a game for early birds and project creators, who are thriving in the era of “build and dump” that has arisen with BSC. Everyone buying into these coins is playing a game with the deck stacked against them. Project insiders who hold huge stacks won’t have a long term vision for a project that took only hours to create.
However, some meme coins do stand the test of time, and live long enough to be traded by Alameda.
It seems TikTok is an even more chaotic and volatile market indicator than Twitter, but with the increasing amounts of capital coming from new investors, surely there’ll be trackers on TikTok for momentum traders.
The same attitudes from the offline world persevere into crypto, as the popularity of gambling is polarised; in favour mainly amongst the richest or the most desperate. We’ve replicated a casino, or a high street bookmakers, where the apes chase candles and the cynical FEW watch on and laugh, safe in their circles of influence.
Social networks move the markets, and when it comes to meme coins - marketing beats technology.
Does it matter if the tokens are fungible when owning them still leaves a permanent record on your wallet? As we wrote in “Time as Money”, purchasing meme coins is not so different to purchasing moments, each token serves as a souvenir of what was popular at that time.
Buying such coins gives value to the meme and how it is perceived. As with the “degenscore” of atomic.blue, meme coins can prove a level of involvement within the scene, as if to say that the holder has gone beyond purchasing all the “blue chip” coins and still has enough time, capital or level of interest to purchase tokens with less inherent value.
In this way, wallets can be read like a profile of their owner, a permanent record of their behaviours. In twenty years when economics students study DeFi summer - which they will - they will be able to say with the benefit of hindsight, that it was a poor decision for 0x12345 to purchase 100,000 ASS tokens at (Apr-26-2021 11:34:12 AM +UTC), because he could have waited and bought them cheaper at a later date.
Whether you play with meme tokens, blue chips or stablecoins, the fact of the matter is, we’re all playing different parts of the same game, and we can take satisfaction in the fact that we’ve all outperformed the hedge funds, who are just happy to still be playing...
Performance remains strong in 2021 after the Hedge Fund Research Index returned 11.8% in the year ended Dec. 31, the best return in a decade, data from Hedge Fund Research Inc., Chicago, showed.
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