Classification of Meme coins: Emotional trading (purely community-driven) + Market maker trading (logic-driven)
1. Emotional trading:
Characteristics: Unpredictable, relying on sudden events and cultural resonance to attract retail investors.
Performance: Mainly exploded on the Solana chain, such as $Pnut, $Moodeng, $Goat, etc., quickly gaining popularity due to hot events. The process is: Retail investors select potential targets → Large funds (small and large market makers) propel it → Listing on CEX (like Binance) breaks through liquidity ceilings, bringing opportunities for wealth.
Case:
$ai16z, due to the AI Agent craze, institutions took over retail chips early, achieving high liquidity exits on Binance.
$Trump, due to the narrative of 'US President issuing coins', FOMO pushed it up to over $70, but it did not transition to market maker trading, collapsing after the emotional wave receded.
2. Market maker trading (logical trading):
Characteristics: Planned by a single market maker (project team), chip structure is clear, it may be fully circulating or partially circulating meme, launched through meme platforms or without VC investment, still classified as meme.
Case:
$Pepe seems wild, but in fact, there is a project team planning, with clear strategies from creativity to development.
$spx6900 initially was emotional trading, later controlled by large holders and turned into market maker trading.
Advantages: Market makers maintain the project, chip structure is clear, development motivation is strong, avoiding the 'chaotic long' issue of emotional trading.
Counterexample: Large holders of $ACT lie flat and do nothing, causing the project to stagnate.
How to profit from investing in Meme coins:
1. Emotional trading: Requires strong tooling ability, keen sense, or extreme patience to capture retail surges triggered by hot events.
2. Market maker trading: Conduct thorough background checks, analyze the strength, pattern, and goals of market makers, and assess their potential to drive liquidity to enter at the right position.
There is no distinction in Meme investment; emotional trading or logical trading are both dances with the market makers (whether small or large market makers). The key is to find a style that suits you.
