🧵Why Platform Fees Beat Trading Memecoins for Making Money
1/ Trading memecoins can feel like hitting the jackpot—until it doesn’t.
The volatility is insane, and most traders lose.
Platform fees? Steady, predictable cash flow.
Let’s break it down with history and examples.
2/ Memecoin Trading:
High Risk, High Reward (Mostly Loss)
Memecoins like Dogecoin (2013) or Shiba Inu (2020) have made some early adopters rich.
DOGE spiked 20,000% in 2021 thanks to Elon’s tweets. But timing’s everything—latecomers got wrecked when it crashed 70%+.
3/ Case Study: Dogecoin 2021
Peak price: ~$0.74 (May ‘21). Today?
Hovering ~$0.10-$0.20 (depending on market).
Most retail traders bought high, sold low—or didn’t sell at all.
Data from Chainalysis (2021) shows 70%+ of crypto traders lose money in speculative pumps.
4/ Platform Fees:
The House Always Wins
Exchanges like Binance, Coinbase, or even NFT marketplaces like OpenSea rake in fees no matter who’s winning or losing. Binance’s 0.1% trading fee on a $500B+ annual volume (2021 peak) = consistent billions. No gambling required.
5/ Memecoin Busts: SafeMoon (2021)
Pumped to a $4B market cap, then crashed 90%+ amid lawsuits and dev scandals.
Traders lost life savings. Meanwhile, PancakeSwap (where it traded) kept collecting its 0.25% fees. Who’s laughing now?
6/ Numbers Don’t Lie
Coinbase 2021 revenue: $7.8B, mostly fees.
Binance: $20B+ (est.).
Top memecoin traders might make millions in a good year—then lose it all. Platforms don’t care about DOGE’s price; they bank on activity.
7/ The Catch
Running a platform isn’t free—
dev costs, legal hurdles, hacks (e.g., Binance’s $570M BNB hack, 2022).
But once scaled, it’s a cash machine.
Trading memecoins?