Dogecoin killers or hype: are traders still making millions on meme coins? 

Meme
coins
still
bring
profit,
but
not
for
everyone.
Investors
told
crypto.news
how
much
they
were
able
to
earn
from
the
meme
coin
hype.

Meme
coins
posted
an
astonishing
return
of
1,313%
on
average
in
the
first
quarter.
And
this
sector
doesn’t
even
think
about
stopping
its
growth,
bringing
traders
millions
of
dollars
in
profits.

Huge
positive
price
waves
in
a
matter
of
days
or
weeks
are
natural.
But
what
is
this
all
about? 

What
are
meme
coins?

Meme
coins
are
a
type
of
cryptocurrency
whose
popularity
is
directly
related
to
internet
memes
and
viral
marketing
on
social
networks.
Typically,
they
are
initially
created
as
a
joke
without
any
practical
function.

The
first
and
most
famous
token
was
Dogecoin
(DOGE),
launched
in
2013
based
on
the
popular
Shiba
Inu
dog
meme.
DOGE
was
initially
intended
to
be
a
parody
of
Bitcoin
(BTC).
However,
over
time,
this
asset
gained
a
billion-dollar
capitalization.

The
main
difference
between
meme
coins
and
traditional
cryptocurrencies
such
as
Ethereum
(ETH)
or
Bitcoin
is
the
lack
of
intrinsic
value
and
emission
restrictions.
Their
cost
depends
entirely
on
demand
amid
the
Internet
boom,
and
because
of
this,
meme
coins
are
characterized
by
increased
volatility.

However,
recently,
there
has
been
a
tendency
to
give
meme
coins
greater
practical
significance.
For
example,
the
developers
of
Shiba
Inu
(SHIB)
and
FLOKI
are
creating
their
own
metaverses,
NFT
platforms,
and
educational
ecosystems
based
on
these
assets.

Million-dollar
profit
—
this
year’s
trend

The
number
of
issued
meme
tokens
is
growing
with
enviable
regularity,
and
traders
manage
to
earn
fortunes
from
them.
However,
such
success
is
usually
short-term
and
random.
In
the
long
term,
as
internet
popularity
declines,
the
value
of
most
meme
coins
tends
to
zero. 

Presumably,
those
who
earn
millions
of
dollars
on
meme
tokens
have
insider
information.
Otherwise,
how
would
these
traders
and
investors
know
that
prices
for
certain
meme
coins
would
show
rapid
growth?
The
editors
of
crypto.news
spoke
with
traders
who
could
make
profits
on
condition
of
anonymity.

Frog
Investments

Members
of
the
Pepe
(PEPE)
crypto
community
are
celebrating
the
frog
token’s
new
all-time
high.
Amid
this,
one
user
said
that
he
turned
just
$90
into
$1.4
million
thanks
to
PEPE.

In
mid-April
2023,
a
trader
purchased
almost
6.5
trillion
PEPE
on
the

Uniswap
crypto
exchange
just
for
fun.
Since
the
initial
investment
amount
was
small,
the
trader
did
not
sell
the
tokens
and
decided
to
watch
what
would
happen
to
them.

This
decision
turned
out
to
be
the
most
correct
one
—
in
May
2024,
6.5
trillion
PEPE
made
the
anonymous
trader
a
dollar
millionaire.
However,
a
user
with
the
nickname
Mina
said
that
he
does
not
intend
to
sell
PEPE
and
now
believes
that
one
day,
the
price
of
the
frog
coin
will
exceed
$1.

“Sometimes
I
want
to
sell
my
PEPE,
but
I
save
it
as
a
reminder
not
to
rush.
The
meme
coin
market
has
not
yet
finished
conquering
the
peaks,
and
it
is
likely
that
my
PEPE
will
make
me
a
billionaire
in
a
year.”

Mina,
anonymous
trader

Strong
belief
in
dogs
and
love
of
hats

A
trader
from
the
meme
coin
Telegram
community
shared
an
impressive
story
of
earnings
on
the
Dogwifhat
(WIF)
coin.
However,
this
case
is
unlike
the
inspiring
stories
of
traders
whose
coins
grow
1000
times
in
an
hour.

The
anonymous
trader
used
a
different
strategy
—
HODL.
He
purchased
WIF
in
December
2023
and
analyzed
the
overall
activity
on
the
Solana
network
and
the
crypto
market’s
growth
prospects.

After
weighing
all
the
risks,
the
trader
bought
approximately
$500
worth
of
tokens,
expecting
further
growth.
As
a
result,
he
earned
about
$15,000
simply
by
keeping
assets
on
his
balance
sheet. 

“I’ve
heard
stories
of
traders
making
billions
of
dollars
in
profits
starting
with
just
$100.
However,
as
an
active
participant
in
the
crypto
community,
I
find
these
stories
to
be
the
exception
to
the
rule.
The
meme
coin
market
is
still
very
opaque
and
confusing,
so
the
inspiring
stories
about
traders
are
likely
simply
insider
trading.”

Meme
coin
community
member

More
conservatism 

Another
crypto
community
member
with
the
nickname
Andilet
called
for
caution
when
investing
in
meme
coins
and
shared
his
strategy
for
diversifying
assets.
He
advised
dividing
the
crypto
portfolio
by
risk
level,
with
10%
of
the
portfolio
made
up
of
high-risk,
volatile
coins,
including
meme
coins.

Despite
the
high
risk,
allocating
part
of
the
portfolio
to
meme
coins
seemed
appropriate
since
meme
coins
are
more
likely
to
provide
significant
profits. 

“In
general,
it
is
difficult
to
predict
in
the
long
term
how
the
meme
coin
market
will
behave
—
because
in
memes,
everything
depends
heavily
on
hype,
the
level
of
which
is
also
challenging
to
predict.”

Andilet,
SHIB
investor

He
invested
in
Shiba
Inu
in
the
summer
of
2023,
spending
about
$5,000
to
purchase
coins
at
a
price
of
$0.0000077.
Now,
with
an
SHIB
rate
of
$0.000025,
his
assets
are
worth
about
$50,000.

“I
believe
that
in
the
case
of
meme
coins,
an
individual
approach
to
each
project
is
important.
You
can
guess
the
trend
in
the
short
and
medium
term
by
closely
studying
the
project.”

Andilet,
SHIB
investor

Summing
up:
to
invest
or
not
to
invest?

Investing
in
meme
cryptocurrencies
is
a
considerable
risk.
This
can
bring
a
solid
profit
due
to
speculation,
successful
exit
timing,
and
a
complete
capital
loss.
The
main
thing
is
to
monitor
social
networks,
read
the
news,
be
able
to
search
for
information,
and
the
first
time
a
media
personality
mentions
any
meme
coin,
try
to
get
it.