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Over the past weekend, there was a notable rise in Mimi Coin prices, driven by growing social hype and increased risk appetite among cryptocurrency investors. The concept of a “memecoin supercycle,” which posits that memecoins will drive the next crypto bull run, has gained traction on X. In this context, cryptocurrency analyst Kai (@Kaiwen0x) released a widely shared report condition Explaining the continuing appeal of memcoins as a viable investment option.
Memecoins issue in Crypto Bull Run 2025
Kay argues that memcoins are poised to outperform the market by 2025, suggesting that owning a “curated basket of memcoins” could allow investors to outperform 99% of market participants. “Apart from Bitcoin and stablecoins, memecoin is the only category that has found a clear product-market fit. It combines the best features of ICO (capital creation) and NFT (community building) in offering a killer product: permissionless global speculation.”
The analyst emphasizes that traditional cryptocurrency projects often combine product development and token management, while memecoins focus only on the token itself. “Memecoins removed the product and made the token a full-fledged business, where the value of the token is derived from the interest generated by its community,” Kay explains. Citing data from cryptocurrency analyst @MustStopMurad, Kay points out that in 2024, 16 of the top 20 coins in the top 300 that have outperformed Bitcoin are memecoins.
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Kay identifies two key external factors that are crucial to the rise of the memecoin. First, the overall liquidity and interest rates must be favorable for the entire market: “The macro setup points to higher liquidity and lower interest rates in the next 12 months. Memecoins act as a leveraged beta on Bitcoin, allowing you to get maximum A degree of upside in an environment full of risks.”
Second, the analyst refers to financial nihilism, a term popularized by Ikigai Investment CEO Travis Kling (@Travis_Kling). This theory suggests that increasing financial nihilism and a “YOLO” mentality are attracting more participants to speculative markets.
Internally, memes have shown to have a clear product-market fit and benefit from what is known as the Lindy effect – where the future life expectancy of some technology or idea is proportional to its current lifespan, suggesting that memes are here to stay. Additionally, memes are particularly skilled at creating and maintaining compelling narratives, a crucial aspect in a market driven by speculation and investor sentiment.
The art of choosing a Memecoin
Kay delves into strategies for selecting promising meme coins, emphasizing the importance of careful analysis:
Emotional Resonance: “I look for memes that generate a strong emotional reaction. Are they funny, relatable, engaging, powerful, or memorable?” The average retail investor will be the last marginal bidder for our magical online coins, so you need to buy and hold What resonates emotionally,” Kay explains.
- Cursor simplicity: Prefer simple, robust cursors, ideally 3 to 5 characters in length, such as WIF, GIGA, and BULL.
- Growth in the number of holders: Monitor steady growth in the number of holders as an indicator of increasing adoption.
- Wide distribution of tokens: Prefer currencies with a wide distribution to avoid the risk of centralization.
- Resilience to drawdowns: Identify currencies that have survived several significant price drops and rebounded, indicating strong community support.
- Active Community Engagement: Search for an “active army of responders interacting with X,” indicating a lively and engaged community.
- Exchange Listings: Note that Central Exchange (CEX) listing announcements can significantly impact the valuation of a token.
- Absence of Insiders: Be wary of coins that involve insider participation, such as pre-sales or venture capital backing, which can lead to an uneven playing field.
Potential risks and avoidance scenarios
Kay acknowledges the risks associated with investing in meme coins:
- Macrosystem change: A significant rebound in inflation or a reversal of monetary easing could invalidate the macroeconomic thesis of being long on risky assets.
- Unique Events: Events such as major exchange hacks, regulatory shifts, or large market crashes can disproportionately impact memecoins.
- US Election Results: “Contrary to expectations, memes could underperform this cycle if Trump wins the election,” Kay predicts.
- Emotional Attachment: Cautions against investing too much emotionally in any community, as this can affect judgment. “Identity can create emotional connections that affect your judgment as an investor.”
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Kay emphasizes the importance of understanding investor psychology in the cryptocurrency market. “Ultimately, the question comes down to: ‘What does the average cryptocurrency investor care about?’ It’s not the technology. It’s not the product. “It’s the token — which embodies greed and the expectation of greater profits — that ultimately consumes that investor,” he said. As he writes.
However, the cryptocurrency analyst advises investors to remain vigilant and adaptable: “To avoid a crash, we need to monitor macro conditions for any signs of a regime change. We must also keep an eye on distinct events that could invalidate the investment thesis in any specific token.” “Good luck,” Kay concludes, “and for the love of dogs, don’t exaggerate this (still) opportunity 100 times.”
At press time, WIF was trading at $2.67.
Featured image from iStock, chart from TradingView.com