Meme season is back? Market omens are bad?
The return of Meme caused a wave of FOMO to peak into MemeCoin. Is it too late to invest in Memecoin? Or is Memecoin’s sudden growth a “negative” sign for the overall market?
PEPE’s amazing growth
At the time of writing, PEPE is listed as a trading pair on the Binance exchange and at one point reached a high market capitalization of over $1.8 billion, with a 24-hour trading volume of over $2 billion. Currently, PEPE ranks 43rd according to Coinecko
Launched on April 14, 2023, $PEPE attracted an insane 1000x growth within the first week. and began a series of days of being widely searched on social networking sites. Creating a wave of Memecoins across the crypto market
Memecoin Season’s relevance to the market
Comparing history every time there has been a growth wave for Top-Cap Memecoins, typically $BTC is followed by a correction across the market
Bull market operation stage in 2021
In 2021, the Shina Inu dog image became a trademark of Memecoin, causing tokens like DOGE and SHIB to grow “thousand-fold.” DOGE, in particular, has received enthusiastic support from “billionaires” such as Elon Musk and Mark Cuban.
During 2021, the peak of FOMO entering Memecoins occurred in May 2021, when DOGE peaked at over $80 billion in market cap, and in November 2021, when SHIB peaked at over $40 billion in market cap. What these two tokens have in common is that they were both listed on Binance and went on to explode and reach tens of billions of dollars in market capitalization shortly after
Downtrend Period 2022
According to the crypto market’s 4-year cycle, 2022 is a market “down” year similar to 2018. Although Terra (LUNA) experienced a series of crashes, Three Arrows Capital and FTX Empire-Alameda Research responded to the market downturn, but DOGE and SHIB also had periods of surge, which attracted social attention
Typically, in the early stages of August and October 2022, both DOGE and SHIB experienced "surge" growth waves lasting 1-2 weeks
Is the Ethereum Foundation on the right path?
Everyone now says that the Ethereum Foundation can sell at a high point every time. What can we learn from this?
Don’t sell most of your chips early
Don’t speculate in the short-term, don’t speculate in the short-term, don’t speculate in the short-term
In the bull market, reduce positions appropriately and control the reduction to 10-30%.
Money is very important. You need to prepare cash for 3 years of operations or food and drink.
Don’t sell most of your chips early
The Ethereum Foundation sold most of its chips during the rise of ETH in 2017. This also shows one thing that the project team itself would not have expected the subsequent trend.
This is also the biggest mistake of the Ethereum Foundation, but it was very correct in terms of the decision-making at the time. We must pay attention to the correct decision-making, not the correct result!
Don’t speculate in the short-term, don’t speculate in the short-term, don’t speculate in the short-term
When the foundation was in 2017, some people had this idea in mind: sell part of it first to ensure that the foundation has enough cash to be able to buy back even if it falls.
The selling rhythm of the Ethereum Foundation has been much slower after 18 years. The selling rhythm is on an annual basis. So don’t speculate in the short term. The long-term layout is a sure win.
In the bull market, reduce positions appropriately and control the reduction at 10-30%
In fact, the strategy of the Ethereum Foundation is very simple. It is not necessarily a big bull market to reduce positions appropriately, but sell part of it every time everyone's FOMO is relatively high. This can ensure that the pocket is safe. After all, the Ethereum Foundation still needs funds for construction. ecology