How to Choose the Best Meme Coin Project to Invest In
While cryptocurrencies may be in a slump at the moment, this hasn’t deterred investors from jumping on the trillion-dollar bandwagon. The influx of various projects offers investors a variety of investment options, with meme coins being one of the most preferred alternatives. The reason for this, however, isn’t far-fetched, most of these coins are superficially low cost.
The rise of Dogecoin and a few others have laid a precedent for future investments in meme coins. While most of the existing projects are scam protocols created to benefit the developers only, there are undeniable rare gems that will continue to provide savvy investors with more than 1000x returns on each investment.
Prospective investors seeking to get in on the meme coin bandwagon will have to apply due diligence when it comes to investing in these projects. Fortunately, this piece will share valuable and unique tips on how to choose the best meme coins to put your money on.
How to Choose a Meme Coin
The unprecedented growth of cryptocurrencies and accompanying trends like NFTs and DeFi in 2021 acting as a catalyst, has laid the groundwork for the development of various projects, launching on various chains like Ethereum, Cardano, and Binance Smart Chain.
In an attempt to usurp existing projects, each of these new tokens tries to build up hype as the next Dogecoin or Bitcoin. Most of these projects being copy-paste scams were created to easily swindle money off unsuspecting investors. Amidst all of these, the rise of projects like Dogecoin and Safemoon, as meme coins, is enough proof that while there are various scam projects, savvy investors could still make huge returns from investing in meme-themed projects.
Since most of the existing projects are scams, it is important to look carefully before investing. An Ideal meme coin should have low investment risks.
Additionally, learning to avoid rugpulls is one gargantuan way of increasing your returns. However, the problem lies in accurately identifying them.
Here are a few things to take into consideration:
- Token distribution — most project developers have deployed strategies to fool unsuspecting investors and one of those is allocating half of the project’s tokens to themselves or a celebrity. This is dangerous because since they did not buy these tokens like other investors, they could simply dump their huge allocation anytime they see fit. In disparity, an ideal project launch is one where all of the tokens are put into a decentralized exchange like PancakeSwap or UniSwap and open for anyone to purchase.
- Liquidity pool ownership — when an emerging project creates a liquidity pool on a DEX, their default move is to have total control of the LP. This means that they can remove the entirety of the pool along with all digital assets locked anytime they see fit. An ideal project should have investors as liquidity pool owners.
High Potential Reward
Since there is no explicit checklist to help you identify projects with high rewards, you should be on the lookout for;
- Projects with a long-term focus on adoption and community building.
- Projects with a trustworthy team of renowned crypto experts
- An ideal white paper with a clear cut vision for the future
- The aesthetics of the token. Is it cute with a real meme?
Speaking to savvy investors about the seemingly diminutive prospect of landing a legitimate meme coin with huge investment returns, Chairman of BIgONE Asia and Chief Digital Advisor of Mongolian, Anndy Lian, had this to say;
“The credibility meme coins are enjoying today is partly due to the increasing celebrity endorsements and top-notch promotions. I’ve noted, albeit not surprisingly, that most of the successful projects are at where they are now in terms of market value solely because of the existence of a community of forward-driven individuals working together to achieve a common goal — adoption”
Speaking further, the Digital Advisor revealed that it is one of the major signs of a project that will be highly successful.
“Nevertheless, it is of utmost importance that you always do your research”, Anndy advised.
Promising Meme Coin Projects
Based on the tips shared above, these are a few of the propitious meme coins that could offer huge returns on investment:
- MiniDoge — this is the world’s first auto-boost hyper deflationary coin.
- BabyDoge — this is a deflationary coin with a vision to become scarce over time, thereby increasing its value. This is a cute meme albeit with a lot of bites.
- CateCoin — this project will attempt to create a marketplace where meme creators will be paid for creating and submitting memes.
- CorgiCoin — all of this project’s tokens are locked on the PancakeSwap decentralized exchange and not surprisingly, this project is 100% community-owned.
Disclaimer: The information contained in this article is provided solely for educational purposes, and does not constitute financial or investment advice.