A Little Gamble āļø
Generally, I tend to steer clear ofĀ memecoins, and for good reason. Aside from DOGE, I have not ventured much into this particular sector. I guess being an early investor, I have a bit of a soft spot for some of the older coins, such asĀ DOGE. However, when it comes to the current memecoin market, I usually turn a blind eye. The majority of these coins are driven purely byĀ speculationĀ and have very little to offer in terms of utility, and ultimately, longevity.
There are however a handful of these coins that go on to secure dedicated communities, as well as rather ālimitedā use cases. A particular memecoin recently came up on my radar due to its rather impressive performance over the past two weeks.Ā BONKĀ is up by almost 200% over 14 days. I remember when this memecoin initially launched, there was a fair amount of hype surrounding it.
This, I believe, was primarily due to it being a memecoin on theĀ SolanaĀ blockchain. Once again, I think this to be the dynamic behind the recent pump. Solana has rallied 46% in the same time frame and is one of the top-performing blue chips alongside LINK.Ā Injective ProtocolĀ has also performed phenomenally well, but I wouldnāt classify it as a blue chip just yet. However, in my opinion, that is soon to change.
Due to its strong correlation and relativity to Solana, I view BONK as being the equivalent of a āleveragedā investment in Solana without the risk of liquidation.my standard rule of practice is to increase allocation during severe corrections. Yes, even once theĀ bull marketĀ kicks off there are still enormous corrections.
The only difference is that these dips are aggressively bought up by hungryĀ retail investors, and tend to be short-lived. Even at this early stage, I consider deep corrections buying opportunities. If not now, then when? Due to the risk/reward ratio of BONK, I donāt envision much capital allocation taking place, in terms of my investment. The deployment of capital needs to match theĀ risk/reward ratio.
Many newer investors tend to be ignorant of this practice and usually pay the price. However, that being said, one solid winner can work wonders for yourĀ portfolio. I prefer to be on the side of ācalculated structureā than simply relying on āluckā.
