introduce

MEME plays a vital role in Web3 culture, and has quickly resonated with the digital currency community due to its unique way of dissemination and widespread popularity. These humorous and ironic digital images or concepts not only strengthen the connection within the community, but also become an important tool for expressing opinions, emotions, and market trends. MEME can overcome language and cultural barriers and allow for widespread sharing at minimal cost, which makes it key to increasing awareness and participation in Web3 projects.

The recent surge in the market performance of MEME tokens has attracted widespread attention. The leading token in the MEME space, BOOK OF MEME ($BOME), has seen a 1,000% price increase in a short period of time. This apparent wealth effect has once again drawn attention to the MEME track. According to CoinMarketCap, the market capitalization and trading volume of MEME tokens have risen significantly, highlighting the popularity of MEME and the strong interest of investors. The appeal of investing in MEME lies mainly in the large issuance of tokens and the low unit price, which makes them attractive for financing in a bull market, with investors seeking opportunities for high returns from small investments. In addition, MEME tokens usually revolve around lighthearted and humorous themes.

1. How MEME spreads and exploits emotions: FOMO effect

In the fast-paced world of cryptocurrency, the appeal of MEME tokens can often be attributed to their powerful effect on investor sentiment. One emotion in particular is paramount: FOMO, or fear of missing out. This powerful feeling has been critical in driving the spread and building value of MEME tokens. Let’s explore the dynamics of how MEME tokens appeal to emotions, with a focus on inducing FOMO:

1.1 Viral social media: a catalyst for panic buying

MEME tokens have the power to quickly capture attention through widespread viral sharing on social media platforms. A catchy tweet or a fascinating Reddit post about a MEME token can spread like wildfire, instantly reaching a wide audience. The dynamic interplay between social media virality, community engagement, and KOL influence creates a powerful force driving the MEME token market. Investors, sensing the rapid gains seen by others and influenced by the stories woven around these tokens, buy in in hopes of capturing some of the magic for themselves. The underlying psychology of wanting to be part of a success story, combined with the actual fear of missing out on financial gains, fuels the frenzy of participation in MEME token investments.

A prime example of this phenomenon is $DOGE, which has seen a surge in popularity following tweets from Elon Musk. It has been observed that each of Musk’s dog-related tweets has resulted in a significant spike in the price of $DOGE over a short period of time. This pattern highlights the power of social media in sparking a buying frenzy among investors who fear missing out on potential profits following a high-profile endorsement.

1.2 Price Fluctuations – Emotional Investment Enthusiasm

The roller coaster ride of market prices and performance plays a key role in triggering the fear of missing out (FOMO) among investors. As the value of MEME tokens soars, so does the fear of missing out on lucrative returns. Fueled by market hype and sensational news reports, this emotional whirlwind has driven more and more people into the investment frenzy, all driven by the urge to take advantage of a seemingly golden opportunity.

Silly Dragon was launched by Solana founder Anatoly Yakovenko during Halloween 2023, and gained trust and authority with the direct support of the public chain founder, further driving its wealth effect. $SILLY has shown significant market growth in a short period of time, with a market value of $70 million, more than 8,600 holding addresses, and a capital pool of $1.2 million on the blockchain. This rapid market growth is seen as a wealth effect, attracting more investors and traders.

1.3 Strategic Storytelling - Weaving the Myth of Wealth Creation

The success of MEME token businesses often depends on their ability to weave compelling stories. These carefully crafted stories not only attract investors, but also establish a strong emotional connection, making them feel that they are an integral part of a great saga. This sense of belonging and the potential for wealth creation fuels the "Fear of Missing Out" frenzy, prompting investors to rush into the market for fear of missing out on historic opportunities.

$BOME stands for "Book of MEME". Created by the famous Pepe MEME artist Darkfarm, the project ambitiously seeks to build a comprehensive library dedicated to the permanent storage and creation of MEME content. $BOME quickly became the focus of attention, went viral on social media, and its market value rose rapidly. The "Book of MEME" concept cleverly combines MEME culture with blockchain technology to achieve the preservation and sharing of MEME content on a decentralized platform. Through a wonderful pre-sale event, $BOME successfully attracted a large number of investors and community members, demonstrating how unique concepts and active community participation can significantly drive the rapid acclaim and valuation of MEME tokens in the digital currency field.

1.4 Scarcity and the Race against Time — Urgency of Action

The strategy adopted by the MEME coin project to increase the sense of urgency among potential investors is to create a sense of scarcity and emphasize timeliness. This urgency is created through limited-time offers, exclusive airdrops, and support from influential figures or ecosystems, forcing investors to act quickly. The fear of missing out on these fleeting opportunities leads to rapid decision-making, ensuring that individuals feel the need to join immediately.

$AIDOGE has introduced a progressive airdrop strategy to more generously reward early adopters and stimulate rapid participation, thereby generating market buzz and initial demand. In addition, it implements a 15% transaction burn fee on each blockchain transaction, dividing the fee into ecosystem development, token burn, and rewards for liquidity providers and stakeholders. This approach not only reduces the token supply, making $AIDOGE more scarce, but also increases value, attracting a wider range of investors.

2. MEME’s impact on the public blockchain ecosystem

The MEME token has considerable influence on the public blockchain ecosystem, attracting a large number of new users with its engaging narrative and social media prowess. The influx of users has not only reinvigorated community engagement, but also injected a large amount of liquidity into the ecosystem, especially benefiting decentralized exchanges (DEX) by reducing transaction costs and enhancing market operations. In addition, the surge in the popularity of the MEME token has created an environment ripe for innovation, promoting the development of the DApp, DeFi and NFT fields, and contributing to the diversity and growth of the ecosystem.

However, the appeal of MEME tokens also comes with its challenges. Their notorious volatility can bring unpredictability and instability, posing risks to the continued development of public chains. Navigating this landscape requires a delicate balance between embracing innovation and managing market dynamics to maintain a healthy and evolving ecosystem.

Case Study 1 — Solana’s $BOME Phenomenon

$BOME, created in the Solana ecosystem by Pepe MEME artist Darkfarm, provides a prime example of the multifaceted impact of the MEME token:

A. Increased Community Engagement: $BOME’s presale and debut created a huge buzz, attracting many new enthusiasts and investors to the Solana network. This surge not only increased trading volume, but also strengthened Solana’s position in the digital currency space.

b. Liquidity pool growth: Through pre-sales and airdrops, $BOME has contributed a large amount of capital inflow to Solana's liquidity pool. This not only enhances the liquidity of Solana's decentralized exchange, but also enhances the trading depth and market vitality of other projects in the ecosystem, and cultivates a more active market.

C. Ecosystem Diversity: The successful launch of $BOME highlights Solana’s openness and support for MEME token businesses, attracting a series of similar initiatives to launch on the platform. This trend expands ecosystem diversity and stimulates innovation.

d. Investor Confidence: $BOME’s market history has the power to influence investor sentiment toward the Solana ecosystem. Its success can bolster confidence in Solana’s potential, while any decline or controversy could damage the ecosystem’s reputation.

The story of $BOME on Solana highlights the complex interplay between increased community participation, liquidity injections, and ecosystem diversification amidst the backdrop of potential market volatility and fluctuating investor confidence. With Solana’s Total Value Locked (TVL) growing staggeringly to over $4.3 billion, jumping over 100% in just one month, momentum appears to be on an upward trajectory. Continued inflows and an accelerating pace of exchanges listing Solana tokens are further evidence of the ecosystem’s growing vitality and appeal.

Case Study 2: $DOODOO’s Impact on Aptos

$DOODOO’s debut as the first true token on the Aptos platform highlights the platform’s commitment to innovation and fostering a community-driven environment. This launch is more than just launching a new token; it’s about integrating the vibrant culture of MEME coin into the fabric of emerging public chains like Aptos, showcasing the potential for unique value creation in these ecosystems.

A. Expanding Community Engagement: The launch of $DOODOO is expected to attract members of the MEME coin community to join the Aptos ecosystem. These enthusiasts are known for their active presence on social media and cryptocurrency forums, and are likely to stimulate community engagement on Aptos and significantly increase user interaction levels.

b. Improved market liquidity: In line with Solana’s recent momentum in accepting MEME tokens, $DOODOO will attract a large amount of trading activity to Aptos. The influx of liquidity providers and traders is expected to enhance the financial ecosystem of the Aptos decentralized exchange and enrich the liquidity landscape of the network.

C. Cultivate innovative applications: The successful launch of $DOODOO may serve as a beacon for developers, encouraging the creation of cutting-edge DApps and smart contracts on Aptos. Especially in areas closely related to MEME culture, such as NFT and games, we can foresee a large number of creative applications that will enrich the platform's products.

d. Increase media visibility: MEME tokens have a knack for attracting media attention, and $DOODOO is no exception. Its listing could increase the visibility of the Aptos ecosystem, attract a wider audience of developers and traders, and establish Aptos as an emerging hub for blockchain innovation.

e. Ecosystem nourishment projects: Public chain foundations play a vital role in maintaining growth through investment and token incentives to support ecosystem projects. Incentives provided to ecosystem project users in the form of APT tokens can bring in a steady stream of capital to drive further expansion and development.

Essentially, $DOODOO’s entry into the Aptos ecosystem heralds a range of positive outcomes – from increased community engagement and increased liquidity, to the stimulation of novel applications, increased media interest, and the nourishment of a strategic ecosystem. Together, these developments are expected to accelerate the growth, diversification, and maturity of the Aptos platform, laying fertile ground for innovation and collaboration.

3. Identifying Potential Thousand-fold Memes

Despite its departure from traditional financial metrics and commercial applications, MEME tokens have the unique potential for explosive growth, driven primarily by community support and social media momentum. These tokens represent a high-risk, high-reward investment frontier, with success stories often accompanied by viral trends and significant community engagement. However, the volatility of MEME tokens means that while a few tokens may see impressive returns, many others face rapid rises and equally rapid falls. Investors should explore this space diligently and adopt a strategy that focuses on early discovery and participation.

Criteria for identifying breakthrough MEME tokens:

3.1 Cultural Virality and Initial Engagement

Look for MEMEs with easily shareable content and a strong initial following. Tokens like $DOGE and $SHIB gained traction on Web2 platforms before making a splash in the Web3 space, laying the foundation for widespread acceptance.

3.2 Active community dynamics

An engaged community is key to success. Carefully examine the token’s presence on social media channels and the level of interaction between members. Signs of FOMO and endorsements from KOLs can indicate positive momentum.

3.3 Transparent and experienced team

Investigate project leadership to assess their expertise and track record. Projects led by reputable teams, backed by solid white papers and economic models, have a greater chance of success.

3.4 Compelling Narrative

A compelling story that challenges the norm or presents a unique angle can significantly attract attention. Controversy and a sense of mystery can also enhance a token’s appeal.

Spotlight on $SLERF: A narrative of resilience

$SLERF embodies the power of narrative in the MEME token market. $SLERF has managed to maintain its popularity following a series of unconventional events, including an accidental burn of significant assets. The project’s ability to turn potential disaster into a compelling story of community support and resilience (underscored through a renowned endorsement and humor-driven engagement strategy) has not only sustained interest, but also encouraged new investment, propelling $SLERF to the top of the market cap rankings within its ecosystem.

Typically, the act of destroying tokens in the liquidity pool at the time of a token launch is a gesture of commitment to pre-sale participants. This action means that the developers lock in liquidity and give up the right to mint additional tokens, effectively ensuring that they cannot manipulate the supply. Such initiatives are generally positively received within the community, indicating a positive outlook. However, the story of $SLERF took an unexpected turn when the founder of $SLERF revealed that the tokens used for the airdrop, as well as the 535,000 $SOL accumulated during the pre-sale, were accidentally destroyed. This accident led to the loss of minting rights and a severe loss of liquidity, triggering violent fluctuations in the $SLERF market and catapulting the token into the spotlight.

Amid wild price swings, $SLERF’s appeal remained intact, thanks to the founder’s engagement with the community through self-deprecating humor and unique events. To offset the losses, $SLERF launched a rescue fundraiser aimed at raising $10 million to reimburse presale participants. The effort was supported by notable individuals and platforms, including Justin Sun, LBank, and several other exchanges. Currently, $SLERF is listed on prominent exchanges such as Bybit, Gate.io, LBank, and Bitget, making it the third largest MEME coin by market cap in the Solana ecosystem. This story of resilience and community support highlights the unpredictable yet fascinating world of MEME tokens.

3.5 Partners and Supporters

Evaluate the support of influential figures, exchanges, or investment groups. Strong partnerships can provide credibility and promote wider adoption.

3.6 Data-driven insights

Use analytical tools to monitor growth trends and trading patterns. Keep an eye out for early holders’ actions or large sell-offs, which could indicate a change in market sentiment.

3.7 Beyond the Hype: Finding Practicality

As the initial excitement wears off, lasting value often depends on real-world applications. Tokens that evolve to provide tangible uses or expand into a wider ecosystem tend to maintain growth over time. For example, $DOGE has been used as a payment method, while Shiba Inu has expanded its value and user base after growing in market capitalization by introducing an ecosystem including ShibaSwap and NFT platforms.

Investing in MEME tokens is inherently speculative, emphasizing the importance of diversification and careful allocation. Participation in these tokens requires a balance between capturing the zeitgeist of cultural trends and recognizing inherent volatility and risk. Wise investors will look beyond the hype and focus on projects with real community building, innovative narratives, and ultimately the potential for utility expansion. Remember, the key to navigating the MEME token landscape is not just to follow the crowd, but to understand the underlying dynamics and potential of each token.

4 Conclusion and Outlook

4.1 Conclusion

The recent trajectory of MEME tokens highlights their critical role and influence in the cryptocurrency market. Characterized by rapid value transformation, wealth creation stories, and a community-centric ethos, these tokens have captured attention, attracting widespread interest and engagement.

Their strengths often reflect broader cultural trends and market enthusiasm. A prime example is the Solana ecosystem, which has seen a resurgence thanks to initiatives such as the launch of Backpack Exchange and Jupiter’s airdrop campaign. These efforts have not only breathed new life into Solana’s MEME project, but have also attracted user participation and investment flows. Solana’s inherent attributes — low transaction costs and superior processing power — further solidify its position as an ideal habitat for MEME businesses, promoting broad participation and increasing the project’s popularity.

In addition, innovative marketing methods such as Saga Web3 mobile phone gifting BONK tokens not only expand the coverage of MEME tokens, but also reflect the synergy between digital currency and tangible goods, opening up new horizons for MEME marketing. The fusion of artificial intelligence and cryptocurrency suggests an untapped growth trajectory for MEME businesses, although this path also comes with certain risks, especially potential instability among investors due to market sentiment and the widespread FOMO effect.

4.2 Outlook

Looking ahead, the development of MEME tokens may turn more towards technological breakthroughs and deeper community connections. As blockchain technology advances, we may see MEME plans to adopt complex smart contract functions, bridge different blockchain networks, and integrate with DeFi platforms to enrich user experience and value creation avenues.

The community-driven model will remain core, with projects leveraging NFTs, games, and social platforms to increase user engagement and loyalty, laying the foundation for strong communities. The essence of MEME tokens—their cultural resonance and community consensus—will continue to drive their endurance and growth.

As the regulatory environment becomes clearer, adhering to compliance norms will be critical to the continued success of the MEME project. At the same time, investors and market participants are expected to mature in their understanding of MEME tokens, tending to more informed investment decisions and value-driven holding strategies, marking a new chapter in the MEME token narrative in the crypto world.