1. The Logic of the Explosion of Dog Coins and Market Psychology

The sudden explosion of Dog Coins is often closely related to the following factors:

Speculative Drive and Fool's Game: The low price of Dog Coins (e.g., multiple zeros after the decimal point) and potential high returns attract speculators to participate, forming a cycle of "early ambush → trend-following speculation → passing the buck." For example, currencies like SHIB achieve price surges through social media hype and community consensus, essentially driven by market sentiment and FOMO psychology.

MEME Culture and Narrative Empowerment: Dog Coins often appear in MEME forms like "animal coins" and "celebrity coins," rapidly building community consensus through easily understandable symbols. Some projects attempt to transform after hype (e.g., SHIB developing Swap, NFT ecosystem), giving them a "value guise."

Bull Market Capital Overflow Effect: After mainstream currencies rise, some investors shift profits to high-risk assets seeking higher returns, with Dog Coins becoming one of the outlets for capital diversion.

2. Dog Coin Selection and Participation Strategies

Although the risks are extremely high, scientific methods can improve selection efficiency (need to combine on-chain tools and community observation):

Contract Security: Check whether the token contract is open-source, whether there are any minting/blacklist functions (through Etherscan/BscScan), and prioritize projects with locked liquidity.

Community Activity: Pay attention to the discussion heat in communities like Telegram and Twitter, and be wary of "zombie projects" that are overly marketed but lack real users.

Smart Money Trends: Use DexTools to track significant on-chain transactions; if early on there are institutional wallets or KOL addresses involved, it may indicate short-term opportunities.

Fast In and Out Principle: Set clear stop-loss/stop-gain points to avoid falling into zero-risk due to greed. For example, recently, some on-chain Dog Coins (like tst) achieved short-term doubling through precise targeting.

3. Risk Warnings and Long-Term Trends

High Elimination Rate and Regulatory Pressure: According to industry data, over 90% of Dog Coin projects ultimately go to zero. The tightening of global regulations further compresses their survival space, with anonymous team projects being the most affected.

Value Return is Irreversible: As investor education becomes more widespread, the market gradually becomes desensitized to currencies lacking technical support and purely speculative. For example, projects like FIL that have practical applications (distributed storage) are more favored by long-term funds.

Small Capital Trial-and-Error Principle: The investment proportion should be controlled within a bearable loss range.