"The on-chain monitoring found an address that bought $250 of PEPE, which just turned into $1.8 million", "A few days ago, I received the AIGOGE token airdropped to the ARB airdrop address, but I didn't sell it. I just saw that the coins received by a single address can be sold for $500. Oh, by the way, I only received 1,000 addresses."
Such voices have been heard in the community and on social media for the past two days. Some people missed out due to prejudice, some missed out on the opportunity, and some sold it for a meal of pork trotters, but they didn't expect it was actually an electric car. As the above information spread, the market also began to stage the grand occasion that had once happened: people would charge money when they saw the contract address. The meme season of the currency market has quietly arrived.
Long before AIDOGE became popular, auragi, an automated market maker project based on Velodrome's ve(3,3) mechanism, airdropped ARB tokens to addresses that were eligible for airdrops. Its airdropped tokens have long been claimed, and the token price has been mediocre, which is in line with the saying "airdropping a pig's trotter meal" spread in the community. Observing the gameplay of this project, it is obvious that no trader like AIGOGE understands the market gameplay.
According to the official introduction, ArbDogeAI is an experiment in the Arbitrum ecosystem. AIDOGE was launched on April 15, with a total of 210,000,000,000,000,000 (2.1 trillion). The distribution method is that addresses with ARB token airdrop qualifications can receive 95% for free, and the other 5% is used to incentivize inviting users. The inviting address will receive 10% of the total tokens received by the invited address, until the 5% reward pool is distributed.
It is worth mentioning that the distribution method is different from other projects' average distribution method. Instead, it adopts a mechanism that the earlier you receive the more you will receive. This has reduced the market selling pressure to a certain extent and also encouraged users who discovered it early. The number of tokens received by the first 60,000 addresses is twice the number of tokens received by the 90,000th address.
In addition, AIDOGE has designed a transaction burning tax mechanism. Users have a 15% burning tax for each transaction on the chain, 3% is used for ecological development; 1% will be destroyed; 2% is rewarded to liquidity providers; 3% is used to purchase ARB for subsidizing protocol games and voting (in the early stages, some ARB tokens will be directly used to encourage users to increase liquidity pool funds); 3% is used for AIDOGE holders to pledge dividends. 3% is used for lucky drops, which will be converted into ARB tokens and deposited in the lucky pool.
As a result, the demand for AIDOGE is generated. First, it can be used for mining, with an annual yield of up to 2,360% when compound interest is calculated at the beginning. Second, it can provide liquidity, with an annual yield of up to 1,039,940,246% when compound interest is calculated. In addition, when users buy 100-1000 AIDOGE tokens on the chain, they will be eligible to participate in the lucky drop, which will be drawn every half an hour. The frequency and probability stimulate the gambling nature of users and increase the game of the market.
The lucky weight of the lucky drop increases in proportion to the value of AIDOGE purchased by a single address, with a minimum of 1 (buy $100) and a maximum of 10 (buy $1,000). The lucky weight is rounded down. For example, if an address buys AIDOGE tokens worth $180, its lucky weight is 1. After each round, the lucky ticket will be reset. According to official data, the number of ARB tokens distributed through lucky drops is currently 159,000, the total number of participating addresses is 9,500, and 177 addresses have received lucky drops.
According to the official plan, the AI NFT series will be launched in the future for training, creation and production. There are also AICODE and DAO. These are the expectations that are currently hanging on the market sentiment and have not yet been implemented. AIDOGE has also been listed on centralized exchanges such as Matcha and Bitget. Its current on-chain holding addresses are 109,000, and the top 100 holding addresses hold up to 81% of the total tokens. The transaction volume of centralized exchanges in the past 24 hours is US$172 million, and the transaction volume of decentralized exchanges is US$8.4 million. The current full circulation market value has reached US$57 million.
What attracts more attention in the market is Pepe's story of getting rich overnight. According to Lookonchain data, a certain address exchanged 0.125 ETH (about 251 US dollars) for 5.9 trillion PEPE on Uniswap four days ago. Based on the PEPE quotation of 0.0000003145 US dollars on April 20, the value of the 5.9 trillion PEPE hoarded by this address has reached 1.85 million US dollars. If all are sold at the current price (currently not sold), the return on investment will reach 7370 times. This is undoubtedly another story of getting rich with a small investment, which is envied by countless people, and it is widely circulated in the market.
Looking back at Pepe itself, according to Pepe's official Twitter, it published its first tweet on April 5, which received little attention at the time, and launched the PEPE token on April 15. Pepe's main concept is "making memecoins great again. Facing the endless derivative meme tokens ShibaCumGMElonKishuTurboAssFlokiMoon that everyone in the market is paying attention to, it's time to change the status quo." Pepe was launched secretly without pre-sale, zero burn tax, LP tokens were destroyed, and contract permissions were abandoned.
The total number of PEPE tokens is 420,690,000,000,000, of which 93.1% of the tokens are sent to the liquidity pool, and the remaining 6.9% of the tokens are stored in a multi-signature wallet, which will only be used for future centralized exchange listings, bridges and liquidity pools.
The first step is to list on Coingecko and CoinMarketCap as a memecoin, with 1,000 holding addresses and more mentions on Twitter. The second step is Vibe and HODL, maintaining community partnerships with the Pepe Times newsletter, providing holders with a dedicated discord channel, and listing on centralized exchanges with 10,000 holding addresses. The third step is to develop a token economy and create Pepe-themed products that customers can purchase with PEPE tokens, with part of the proceeds destroyed. It will also list PEPE Academy and Pepe Tools, as well as first-tier centralized exchanges, with 100,000 holding addresses. At the same time, it has proposed the gimmick of surpassing Bitcoin.
According to the data on its token chain, there are currently 21,400 holding addresses. The top 100 holding addresses hold 44% of the total tokens. The trading volume of centralized exchanges in the past 24 hours was US$14.87 million, and the trading volume of decentralized exchanges was US$122 million. The current full circulation market value has reached US$120 million.
1. Whether it is distributed to a wider group of people for free and fairly
Whether it is the characteristics of memecoins in the past or Pepe and Aidoge today, their common point is that they are distributed to a wider group in a free and fair way. The advantage of doing so is that it attracts more users, and when these users find that they can make a small profit immediately after selling them, they will spread the information to more users by word of mouth.
When this goal is achieved, the manipulators will attract market attention again by pulling up the price. The users who were previously attracted by the small profits will now become noise spreaders, or they will tell everyone about the project's free publicity because of the sales, or they will become the project's stakeholders because they did not sell and made high profits and promote their stories of getting rich.
When the market discussion and holding group reach a certain level, second-tier exchanges will follow up and list the projects for the sake of traffic. This move further increases the popularity of the corresponding projects. There are many projects with extremely high popularity and longer durability that are noticed and listed by first-tier exchanges.
Based on this, when we find a project that distributes tokens to everyone in the market or a group with a communication effect for free and fairly, we can actively participate after confirming that there is no contract authorization risk in the token collection of this project. After receiving the token, if its value is not high, there is no need to rush to make a profit and exit, you can try to make a small profit. And continue to pay attention to the progress of the project in the future. If the transaction volume of the project token chain is large and there are always people taking over in the secondary market, it can be understood that there is a trader behind it.
For users who did not obtain the corresponding project tokens in the early stage, they can decide whether to enter the market based on the popularity of market discussions. For example, auragi, which was distributed for free to the ARB airdrop address in the early stage, did not receive more discussion except for individual groups issuing personal invitation links. Aidoge had less discussion during the first two days of the claim period, but it attracted widespread promotion and discussion as it took on two days of selling pressure and the price remained at a level where users who entered later could receive a pig's trotter meal and users who entered early could receive a rising value. At this time, it is in the early stage of dissemination, and you can allocate position management and enter the market with stop loss.
2. The total amount of tokens is extremely high, and the price is very high
In addition to the distribution method, another common feature of memecoins that are being chased by the market is that the total amount of tokens is extremely high, and the secondary market price has a lot of zeros after the decimal point. From a personal perspective, if you buy mainstream coins such as Bitcoin for $100, the number is usually less than 1, which does not have any impact on personal feelings. On the contrary, it will discourage users with small funds because it cannot meet user needs in terms of expected growth or personal feelings.
However, when a user uses $100 to buy a token, and the quantity is calculated in billions, and some even need to be expressed in scientific and technological terms, the impact on users or investors is extremely strong, catering to the psychological needs of investors.
For example, in the article "Want to play meme coins? You must understand these underlying logic and investment methodologies" published by PANews, the author Ximi mentioned that the speculation direction of meme coins is mainly due to the surge in all mainstream coins. The unit price of BTC/ETH is too high, which makes investors outside the circle stay away. The characteristics of meme coins, such as low price, fun, and easy to spread and understand, are also popular among newcomers.
One dollar can buy millions or even hundreds of millions of meme tokens, which is a low investment cost and will make new users feel more accomplished. Therefore, most successful meme coins are extremely cheap, usually less than one dollar, and the total amount is huge.
3. Whether it has innovative or easily spreadable topics
Innovation or the attribute of being a topic that is easy to spread determines how many people the project can impress and how far it can spread. For example, when people mention PEOPLE, they will think of the DAO that auctioned the constitution. The communicator thinks it is worth spreading, and the spreader thinks it is very interesting. Another example is the relatively failed DAO that saved Assange. When you first heard such a story, you would think about who Assange is and why you want to save Assange. You have to check Wikipedia, which has increased the obstacles in terms of dissemination. Another example is Pepe, which is very popular today. Its topic is to abandon garbage memes such as doge. PEPE will make memecoin great again, which has aroused emotional resonance in the market. At the same time, PEPE itself is also a widely circulated MEME emoticon package with the foundation of MEME.
Innovations such as the issuance of shit NFT in 2022 changed the previous NFT market rules of paid casting, and set a precedent for free casting in the NFT market. Moreover, by satirizing a number of blue-chip projects, it stimulated market sentiment, thus completing the topic effect that is easy to spread.
Looking back at all phenomenal projects and summarizing them, it is inevitable to have the cost of hindsight, because whether a project can become a phenomenal existence has a metaphysical component. But from another perspective, whether any project can rise or not is inseparable from the operator and the more powerful stakeholders. In order to attract wider attention and let more groups know and get involved, the operator will definitely consider how to make the project easy to spread, how to make the users who have been reached willing to continue to spread it, and why the users who have been reached should buy it. Therefore, a rational review of commonality has practical significance.
When we see the next project, we should understand and imagine from the perspective of a trader whether the project meets the requirements of free, fair and widespread distribution, whether it meets the purchasing psychology of investors, whether it is innovative, whether it has easy-to-spread topics, whether it can arouse emotional resonance, etc. This will naturally improve our ability to seize phenomenal or significant growth projects.
But the premise of never forgetting everything is that the overall market performance is stable and the risk factor is low. And always set up position management and stop-profit and stop-loss. In addition, every wave of meme market sentiment will bring down the overall market in a long or short period of time, so you need to maintain risk awareness.