Author: NEET
Compiled by: AididiaoJP, Foresight News
I will share how to achieve financial freedom through memes in this cycle, which is a concrete execution strategy, not just an idea. Yes, I'm not joking.
Over the past one to two years, I have been accumulating meme coins on Ethereum. I buy on dips and have no plans for short-term selling. Currently, meme coins make up 80% of my portfolio.
Meanwhile, I am gradually selling my meme holdings on Solana. The liquidity of meme coins in the Solana ecosystem is becoming increasingly low. Aside from a few exceptions, the return rates of meme coins have been declining since the launch of TRUMP and MELANIA in January.
The battlefield of meme coins on Solana will never disappear; new meme coins will rise and fall every day. But we can find safer, higher-return opportunities on Ethereum.
From a macro perspective, my meme coin strategy is very simple:
Stop making scattershot bets on low liquidity Solana meme coins in pursuit of 100x returns.
Start pursuing 10-20 times returns on liquid Ethereum meme coins and invest more capital.
Part One: Why Choose Ethereum Meme Coins?
The liquidity of the PEPE/ETH trading pair is as high as 49 million dollars. What will happen to the price of PEPE when the price of ETH doubles or triples?
My view is simple: ETH will rise, and meme coins will rise even more.
In the past 1-2 years, we have seen excess returns from meme coins like PEPE, MOG, and SPX. The price performance of these coins has outpaced ETH and is likely to continue this trend in the future.
If an Ethereum meme coin meets the following conditions, add it to your watchlist and keep a close eye on it:
Launched for at least one year
Locked or destroyed liquidity exceeds 500,000 dollars
Contract ownership has been relinquished
Official website and social media are still operational
Holders maintain a certain level of activity on Telegram or Twitter
These coins will significantly outperform ETH in the upcoming altcoin season, and this moment may be closer than you think.
Additionally, Ethereum meme coins have a hidden advantage: they are compatible with DeFi. This will be explained in detail later.
Next is the part everyone is looking forward to.
Part Two: Price Targets
Everyone cares about price targets.
No one can accurately predict price movements, but reasonable estimates can be made based on various indicators. Remember: whether you like a particular coin or agree with its meme culture, almost all meme coins will rise during a bull market.
Start with the leading meme coins:
PEPE
MOG
SHIB
SPX
I define leading meme coins as those that have once reached a market cap of 1 billion dollars. At the current price level, their expected returns are between 5-10 times. Holding these coins allows you to sleep soundly; unless a catastrophic event occurs, a 90% drawdown is almost impossible.
Next are the mainstream meme coins:
APU
BITCOIN (HarryPotterObamaSonic10Inu)
BOBO
JOE
NPC
WOJAK
These coins have broken through a market cap of 100 million dollars, usually listed on second-tier exchanges, with active communities and loyal holders. These mainstream meme coins are expected to have 10-20 times upside potential.
Lastly, there are the altcoin meme coins:
BUSINESS
KEKEC
LMI
SMURFCAT
These are small-cap meme coins with a market cap just above 10 million dollars, not listed on exchanges, with low liquidity and trading volume but higher volatility. Not all small-cap meme coins will skyrocket, but those that perform well may yield 20-30 times returns.
The portfolio should focus on blue-chip meme coins, moderately allocate to mid-cap meme coins, and hold a small amount of small-cap meme coins as speculative bets.
Part Three: Spot Leverage
Don't let anyone tell you that meme coins are worthless.
What’s the next step after buying meme coins? Use meme coins for DeFi.
The IMF@intlmemefund protocol allows you to borrow against meme coins.
Why use IMF to take out loans with meme coins? I use it to increase spot leverage for my holdings. Now every time the meme coin rises by 1 dollar, I can earn 1.5 dollars.
The specific operation is as follows:
Buy 10,000 dollars of PEPE
Deposit PEPE into IMF and borrow a 5,000 dollar USDS loan
Swap USDS for PEPE
Deposit the remaining 5,000 dollars of PEPE to reduce loan-to-value (LTV)
The amount of PEPE you hold has increased by 1.5 times. You will only face liquidation if the price of PEPE drops 66% from the current level, and the likelihood of this happening is decreasing every day.
Moderate leverage can bring huge returns. A 1.5 times exposure to PEPE allows you to sleep soundly. Additionally, after completing this transaction, you will also receive IMF rewards, making it a win-win.
At first, I did not realize the potential of IMF. But now communities like MOG and JOE are buying more tokens and driving prices up with new buying pressure.
IMF currently supports PEPE, MOG, and JOE, and will support more coins in the future.
So what about futures or perpetual contracts trading on Binance, ByBit, and Hyperliquid? I suggest proceeding with caution. Meme coins on Ethereum are more mature, and their price increases take longer; this is a game of patience, and rises are just a matter of time.
If you want to swing trade, stick to low leverage, long periods, and never invest more than you can afford to lose.
Part Four: Exit Strategy
The final steps are the simplest.
The position has been established, and the next step is not to wait idly, but to patiently wait. The timing for Ethereum meme coins will eventually come. The market is cyclical, and the moment for funds to rotate back to Ethereum meme coins is approaching.
In any case, setting clear profit targets is crucial. If you don't have a plan to sell a certain percentage or amount of meme coins, your position is like a roller coaster.
When your coins start to rise, first repay the IMF loan and reduce your spot leverage. Then gradually sell using protocols like @1inch or @CoWSwap, exiting in multiple transactions.
Don't try to time the exact top. You need to take profits in batches as the price of the coin rises. Gas fees on the Ethereum mainnet are low, so you can sell multiple times as needed.
After completing these steps, you have successfully caught the bull market and achieved financial freedom through meme coins.
Conclusion
I must admit and execute this trading strategy.
Meme coins will exist for a long time.
Although I also have a positive outlook on other crypto assets (including NFTs and some Solana meme coins), I firmly believe that Ethereum meme coins are like beach balls underwater, they will eventually surface.
In a bear market environment, we have seen the rise of MOG and JOE, rebounding from the lows in February. With protocols like IMF introducing lending and spot leverage features, a new round of meme coin season is likely on the horizon.
This time, I will not trade aggressively on new coins but stick to those time-tested old meme coins.
