Fair launching is one of the best opportunities for investing in Memecoins; but there are also other strategies and DYOR guidelines - especially when it comes to Meme Tokens!
- Total Market Capitalization
- Smart Contract Properties
- Initial Liquidity Provision and Pools
- Creator Taxes and Revenues
- Number of Holders
- Social Media Metrics
Often with memecoins, it pays the most to get in earliest in the launch — but it is also riskiest. High risk, high return!
Timing and Tools are Everything
There are clear advantages to using the best tools available for spotting and identifying the memecoins that will 100X, and these include:
- Using AI tools such as ChatGPT, Arkham, Nansen, or platforms such as TokenMetrics, Santiment, TheTie, LunarCrush, Messari and Moralis to help with on- and off-chain research
- Using bots to “snipe” tokens early
- Using tools to automatically alert token launches and momentum strength
- Using tracking tools that provide information on whale wallets and influencer movements
Let's also discuss one of the main factors that determines the launch and life of a token, which extends beyond the Memecoin narrative and into the realm of Traditional Crypto Projects:
Allocation & Distribution
There generally are 2 ways that projects typically allocate:
- Pre Mined (distribution between early investors, team, advisors, etc. )
- Fair Launch (everyone has a chance to buy at an equal price)
Often, the following players are receivers of the distribution:
- Private Sale (investors, KOLs, etc)
- Public sale (retail investors)
- Marketing
- Ecosystem (staking, rewards, etc)
- Airdrop
The day of the token launch is called the Token Generation Event (TGE).
TGE allocation is the percentage of tokens allocated to all the aforementioned individuals (typically around 10-20%)
The cliff is the period after TGE which tokens cannot be sold and before the next vesting. Vesting is the gradual release of token percentages each month.
Recently, projects have been adopting a method with a small % TGE (up to 20%), followed by several months of cliff and 12+ months of vesting.
This approach is better suited for long-term project success, so it's important to verify all these details before investing
In general, 4 things drive demand for tokens:
• Store of value • Community • Utility • Value Accrual
Value Accrual includes incentivizing activities for Holders, such as staking or burning (burning is often comparable to a stock dividend payout or revenue share
Projects often give rewards/airdrops, etc., to their holders, and this is often beneficial for everyone - encouraging engagement, FOMO, referrals and resulting in a sharp increase in liquidity. An often quoted saying in crypto is, “no airdrop, no community!”
However, there are also more ways to lower the selling pressure by incentivizing holding which are notable:
veHolding
“Ve" stands for Vote Escrow, meaning by locking your tokens for a longer time, you gain more voting power. This is often irreversible. The longer you hold, the more voting power you accumulate.
You can receive VeTokens for locking tokens, typically in exchange for greater voting or participation rights. A caveat here is that in the case of DAOs and DAO governance, sometimes a large holder can influence the voting process to payout proposals that are in their favor or are associated with their portfolio projects.
Therefore, it is important to note the distribution of voting power; and often, it is better to distribute delegated voting power among the smaller delegates in order to achieve sufficient decentralization.
Farm Boosting
Providing tokens into liquidity pools can also boost your farming token percentage. The more you provide and the longer you provide for, the higher your percentage will grow.
Don’t Blind Ape:
Always pay attention to the following metrics when evaluating a project’s tokenization distribution or unlocking schedule:
- Allocation and Distribution
- Total Supply and Circulating Supply
- Vesting period and unlocking dates (including Team, VC, KOLs and Early Investors)
- Rate and Percentage of Token Emissions
- Token Demand and Buying Pressure Activities
Hope this helps to be able to determine whether a project is worth investing in or not, but that is also why I believe Cyrator exists: to crowdsource the intelligence and leverage a greater, resourceful and verified pool of information to help your decision! Show Less
