Deconstructing MEME: The reason for the excellent performance of MEMEs in this cycle

MEME spreads through imitation. Any information that can be replicated through imitation can be referred to as a MEME, such as music, ideas, or styles. The spread of MEMEs conforms to lifecycle theory and applies to infectious disease models, but the standard for strong MEMEs remains difficult to quantify.

MEMEs present in different forms across various cycles, with differing characteristics and mechanisms. MEMEs reflect, to some extent, the investor sentiment and market trends, containing forecasts of new technologies and narrative directions.

The current bull market wave of MEMEs is influenced by social, psychological, economic, and technological factors. At this stage, MEMEs can be categorized from aspects such as mechanism innovation, market narratives, market sentiment, meme culture, celebrity effects, and hot imitation. Its gameplay mechanisms are diverse, and a reasonable strategy must be established to make a profit.

The future of MEMEs is controversial, with differing views from institutions, retail investors, and KOLs. MEMEs should be interesting and meaningful, not reduced to speculative tools.

The Development History of MEMEs

Since the birth of Bitcoin, MEMEs have performed brilliantly in every cycle. From Litecoin to Dogecoin, and then to NFTs and zoo MEMEs, they have presented in various ways, with characteristics and mechanisms changing with the cycles.

Early MEMEs like Dogecoin exploded onto the market in 2013. During the ICO boom in 2017, many projects provided detailed white papers to attract investment through technological innovation. The DeFi craze focused on economic and liquidity advantages, often themed around animals and food.

The current MEME craze relies more on emotional drives, with projects no longer pursuing technological innovation, but rather focusing on narrative direction and market hotspots. The Pump mechanism has emerged, attracting a large number of players to participate.

Classification and Characteristics of MEMEs

1. Innovative gameplay mechanics: such as PEOPLE and SLERF
2. Capture market narratives: such as AI-related MEMEs
3. Reflect market sentiment: like BOME
4. Strong Meme Culture: such as DOGE, PEPE
5. Celebrity Effect: Such as DOGE promoted by Musk
6. Hot imitation: riding the wave but hard to produce a real masterpiece.

Reasons for the Prosperity of MEMEs

1. Mainstream narrative demand: Filling the gap in the market for the lack of mainstream narratives.
2. Perfect infrastructure: Reduce issuance and participation costs
3. Public chain official support: attract users, expand ecology
4. Aligning with Consensus Philosophy: Fair distribution aligns with Web3 values
5. Market FOMO sentiment: Social media hype drives participation
6. Wealth Creation Effect: The legend of getting rich overnight attracts players.
7. Complies with the "no cross-holding" bull market characteristics

Trading Strategies for MEMEs

1. On-chain security first: focus on wallet and contract security
2. Multidimensional Analysis: Consider factors such as pool size, market capitalization, and liquidity.
3. Community Heat: Attention to Twitter followers, community activity, etc.
4. Technical Analysis: Using candlesticks, chip distribution, and other tools
5. Robotic Assistance: Enhancing Trading Efficiency and Accuracy

MEMEs, despite being controversial, have become an undeniable part of the cryptocurrency market. Future directions may include charitable endeavors and more meaningful applications. Investors should participate cautiously, establish reasonable strategies, and manage risks.