The rise and fall of meme coins plays a realistic version of “The Uproar

There are only two things groups will do – add to the mix or drop the ball.

The rise and fall of meme coins plays a realistic version of "The Uproar

The surge of dog coins has brought a host of “animal” concept tokens to the main stage of the crypto asset market. In a few days, dozens of tokens with similar concepts were born, and under the funding boom, they rose in turn, often tens or hundreds of times. New players entered, and old players started to buy with the mindset that they might as well give it a try after crying out that they couldn’t understand it.

The founder of Tesla, Elon Musk, brought about the surge of DOGE by shouting orders for dogcoin. Although he is not the creator of this crypto asset, he is a well-deserved opinion leader, and he has appointed himself as the “father of dogcoin” and called this type of coins as meme coins. The word “meme” is derived from the word “terrier” in Internet pop culture, and is often used as a vehicle for emojis.

Nowadays, some nonsensical crypto assets are cloaked in meme, and they are playing a myth of riches in social networks, intensifying the enthusiasm of people to pursue them.

The meme coin frenzy has divided the market into two factions. The “classical players” who believe in value investment mostly stay put, but the continuous shorting gradually increases anxiety; the other group of aggressive investors and newcomers are busy filling up their money and experiencing the market madness in the midst of the riches and plunges.

Interestingly, dogcoin, which was born much longer ago and was the earliest to break out in this bull market, was hung out to dry by the market in the climax stage. Funds took turns to pour into various imitation discs initiated by unknown people, creating one hundred times coin myths out of thin air.

When the rapid fall after the surge occurred, the frenzy showed signs of receding. The group quickly assembled by the wealth effect, just like the “rabble” in Gustave Le Pen’s book, entered a stage of rapid disintegration and falling down the well.

Half crazy, half anxious
What animal coins have just come out, just send the address of the contract, go and take over, and die. The news of people getting rich by buying animal coins came from time to time in the community, and “old leek” Zhu Ming couldn’t help himself.

In the past few days, Zhu Ming watched SHIB, LOWB, PIG and other animal concept coins soar in turn, several hundred times the rate of increase in a few days continuously stimulated his nerves, making him feel a bit magical. In his eyes, these coins are all dog coin imitation plates, worthless and full of bubbles. As an old leek who has been through several rounds of bull and bear, Zhu Ming has long been planning, “It goes up as it goes up, I am not moving, holding the cake in my hand, and see who laughs at the end.

The company has seen all kinds of frenzy and eventually retreated in disarray, Zhu Ming has been in the cryptocurrency circle for several years and has already formed a set of value investment speculation logic. His cognition always reminds him that he can’t take over for these dirt dog projects, but his psychological defense gradually disintegrated after he kept seeing news of people investing thousands of dollars to earn millions.

After Zhu Ming sent out that paragraph, the people in the group copied and pasted to go in formation, apparently, most of the “old leeks” have stepped on the empty in this round of animal coin mania. The manic emotions spread in the group, and the more senior group leader couldn’t help but remind a sentence, “Make friends with time, everyone should be in the right mindset.

A few months ago, Zhu Ming’s community was still a mainstream group in the crypto-asset market. When DeFi was just emerging, the group members were working around the clock to study how to play each application, discussing the economic model and grabbing the first mine.

Outside of this community of veteran cryptocurrency players seeking value investment, there is another world.

There are many “warriors” who are brave enough to enter the market without fearing the bubble. Many of them are “new leeks” who are new to the cryptocurrency world, and after seeing the surge of dog coins, they will chase their funds into the new “wealth code” SHIB, PIG, AKITA and other coins. At the time of the frenzy, it was rumored that some people became the lucky ones, with their funds doubling hundreds of times and earning enough for a few years’ salary in a few days. Immediately afterwards, unproven wealth myths circulated in various communities.

The new players gathered in the community also went up in line, “People should not communicate with the old leek, there is a reason why they have not gotten rich after all these years. The words are full of contempt for “classical leeks”. During this period, some anxious old leeks couldn’t resist getting on board, “If you can’t beat it, join it, just in case you’re free,” someone said.

SHIB landed on two exchanges, OKEx and Firecoin, sending the wave to a high point. SHIB, which had risen hundreds of times, opened at $0.0000052 on OKEx and rose 280% in one day. OKEx’s opening price has more than doubled by 7 times.

The market’s sentiment was completely ignited as some old leeks cried out “I can’t understand it”. Funds continued to look for the next meme coin with spreading heat. tokens such as ASS, LOWB, HOTDOG and DOGMOON were created, sucking away a lot of money. while these coins were rising like crazy, BTC once fell from $58,000 up to $53,500, and the value coins in the eyes of the ‘old leeks’ were sucked out of the blood.

As when DeFi broke out last year, investors were divided into old and new leeks. This time, the trendsetters who once made a splash on DeFi also experienced a taste of being “behind the curve”. Half anxiety, half madness, constitutes the multitude of lives under the meme coin frenzy.

From grassroots culture to wild speculation
The group effect of chasing meme coins began to appear, even the media and big V outside the circle began to expose dogcoin and SHIB, and the wealth effect attracted more people to join, while the original intention of the birth of dogcoins was gradually left behind.

In 2013, dogcoin was created as a joke of the founder. It had a bitchy image, unlimited total issuance, and the best feature was that it was cheap compared to Bitcoin. In the early crypto community, people often rewarded dogcoins to other community members, similar to the role of an emoji to show approval and appreciation.

For a long time, dogcoin did not have strong investment properties, and people used it to pay tips and donate to charities. Most of its holders were just real-world civilian players, and people expressed generosity and goodwill by distributing dogcoins, and also sought empathy in them. The accumulation of dogcoin consensus represents the rise of grassroots culture.

Today, Dogcoin is in the top five of the crypto asset market cap charts after several rounds of spikes. Celebrities such as Elon Musk, the “Godfather”, have helped to fire up Dogcoin, which has spawned animal tokens such as SHIB, AKITA and PIG. Also worth mentioning is LOWB, which was born in the Chinese community.

LOWB was known to investors for a special AMA. The project owner claimed that LOWB was launched by an impoverished young man from a fourth-tier city in China who invited another impoverished programmer to join him. The reason why LOWB was launched was because the two people lost a lot of money in 3 years of coin speculation and set up the project with the mentality of returning to zero and wanted to experience what it was like to be a project owner. In the AMA, the project initiator bluntly said, “This project promises not to protect the plate (mainly no strength), not to run away, not responsible for the price of the coin, and will cash out when the coin rises.

This “sincere” AMA caught fire, just like a loser’s performance art, which quickly formed a resonance among investors, some with the mentality of playing and others with the dream of getting rich, which eventually pushed up the price of LOWB by tens of times.

The plot gradually turned sour further down the road. In front of the opportunity to get rich, who is willing to continue to be grassroots? Within a few days, dozens of similar meme coins were created, including DOGGY, GUA, ToDaMoon, etc. Someone even issued 2DOG with the Chinese name “Erdogzi Coin”, and the plutonium coin MGB and the tawdry coin SAOB even pierced the brain holes of the coin circle people.

Investors have changed from identifying with grassroots culture to wild speculation in pursuit of wealth. A blockchain developer described the scene he saw this way: many newcomers are pinching their noses in, they don’t care about the market cap, they don’t care about the community, they don’t care who the team is, they don’t care that it has gone up hundreds of times or thousands of times. They don’t care about the market cap, they don’t care about the community, they don’t care about who the team is, they don’t care about the fact that it has gone up hundreds or thousands of times.

These tokens are going up in turn, but they are going up fast and down hard. On May 12, most meme coins experienced a big drop, LOWB fell 50% within the day, SHIB also fell 28% from the high point, other unknown tokens fell even worse, and some even close to zero.

Some industry observers believe that the frenzy is already showing signs of a major ebb. The rise of “dogcoin” was due to people’s identification with a grassroots culture with a strong consensus behind it. But most of the meme coins that have been born recently are just speculation and bubbles, and will turn into nothing when the tide fades.

In retrospect, when this group’s carnival was surging, how many unknown people were swept up in it. Even the old leeks, who believe in value-based investment, could not help but jump at the chance to become the “rabble” under Gustave Le Pen.

Gustave Le Bon wrote that when an individual is an isolated individual, he has distinctive individual characteristics, and when he is integrated into the group, all his personality will be submerged by the group, the ideas will be replaced by the group’s ideas. At this point, he has characteristics such as emotional, non-disagreement, and low intelligence. What the group pursues and believes in is never truth and reason, but blind obedience, cruelty, paranoia and fanaticism”.

From grassroots culture to wild speculation, the creators and speculators of meme coins have jointly supported this carnival feast. And once the tide starts to fade, the centrifugal force of the group will start to explode, and the speed of collapse may be faster than the gathering.

Posted by:CoinYuppie,Reprinted with attribution to:
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