Memecoin is so hot right now, and it’s said to be entering a “super cycle.” It’s a pretty powerful term, like you’re shouting to unsuspecting investors: “Hey, big things are coming!”

Murad Mahmudov loves this word very much. He used it very well in his speech "Memecoin Supercycle". Now, more and more people in the cryptocurrency circle are retweeting his speech on Twitter.

Why does Mahmudov advocate memecoin so much? He said that memecoin can bring you hope, fun, identity, belonging, emotional connection, reduce loneliness, allow you to participate in collective art creation, and imagine a different reality.

Let's review first. The current market size of the entire memecoin is $53 billion, accounting for 2.3% of the entire $2.3 trillion cryptocurrency market value. The Pump.fun platform was only launched in January 2024, and about 2.3 million memecoins have been created so far.

But tell me, how many of these meme coins can make investors money?

To tell you the truth, not much. According to @Adam_Tehc's data from August, 64.7% of Pump.fun traders on Solana either lost money or barely broke even. Only 3% made more than $1,000, and the number of people who actually made $1 million on memecoin was even smaller, with only 0.0028% of wallets doing so.

Some people ask, why are people so fond of memecoins? It’s because those venture capital-backed altcoins are too weak.

This is true. Many venture-backed tokens have fallen since their launch, their internal investor token economics are questionable, and many products have not yet succeeded. You see, about 18% of cryptocurrency companies that raised funds in 2022 have already failed.

But I think we can't just jump into memecoin and throw the baby out with the bathwater. We need to do these things well instead of avoiding the problem.

If you think about it, the history of the internet is littered with failed companies that raised billions of dollars in funding. By February 2002, two years after the peak of the dot-com bubble, about 100 million investors had lost about $5 trillion in the stock market. But today, the internet has become an integral part of our lives. We didn’t get there by doubling down on speculative use cases.

Memecoin, on the other hand, doesn’t pretend to be creating a social innovation. It’s marketed more as an investor advantage. But failed cryptocurrency projects have at least brought us some important lessons and knowledge that are being absorbed and applied by the industry.

For example, we know that algorithmic stablecoins are probably not a good idea, given the spectacular collapse of Terra. We also know from decentralized storage solutions like Filecoin that data is unlikely to be a breakout use case for DePIN, as their costs are only marginally improved over centralized competitors like AWS.

For example, from the decline of Axie Infinity, we can see that the next wave of blockchain-based games are unlikely to be based on the mechanism of making money while playing.

Indeed, the point here is that we won’t know what will and won’t work until entrepreneurs (and, of course, many scammers) try it. That’s the whole point of permissionless markets, after all: to allow a range of experiments to flourish simultaneously.

If a memecoin “supercycle” does occur, it does raise a huge question: So what? Beyond satisfying people’s need for long-term gambling, what has the blockchain industry proven to itself, the outside world, and regulators?

Cryptocurrency is not designed to make you rich. If you get rich in the process, congratulations. But cryptocurrency exists more to make you free.

If you have been chasing ups and downs, often being stuck, not knowing the latest news in the cryptocurrency world, and having no sense of direction, then you are welcome to consult me. I will try my best to answer your questions. If you are confused about the future, I will also share the strategy layout with my small circle! You are welcome to join us, grasp the next hot spot together, and maximize the return on investment together!