From the outside, memecoins may look like a madhouse.
You’ll recall that memecoins are digital assets based on memes — ideas, behaviors or styles that gain spontaneous popularity, causing them to explode like wildfire across social media.
And since there is no fundamental value underpinning the trading price of a memecoin, this sector can easily feel like a giant casino, where both the house and other players are acting against you and luck is your only ally.
But I assure you, nothing could be further from the truth.
See, there is a method behind the memecoin madness.
That’s how members of my New Crypto Wonders newsletter have made impressive triple-digit gains on one memecoin opportunity, with more on the way from another. And we’re not even at the peak of this bull market!
Let me break it down for you …
We can all agree that gambling falls under the umbrella of probability and statistics.
And the way those mathematical disciplines work when it comes to gambling is that the more you play, the more likely you are to lose. That’s because your odds of success are so low that you’ll waste more money trying to win.
That’s what people mean when they say, “The House always wins.”
And you don’t even need to be in a casino for it to apply. Just consider one of the most popular gambling games in the U.S., Powerball.
In this game, the rules are:
- Select five numbers between 1 and 69 for the white balls.
- Then select one number between 1 and 26 for the red Powerball.
In total, you need to select six numbers from the choices listed above. So, let’s calculate the probability of getting all six right:
Then, multiply those odds to get the total possible number combinations, which is 40.6 billion.
In other words, your chances of winning the Powerball by just buying one number is 1/40.6 billion.
A number that big can be hard to visualize. So, think of it this way: One cup of sand contains about 2 million individual grains. To get 40 billion grains, you’d need 20,000 cups of sand.
Out of all that sand, your chance of winning the Powerball is like choosing one single correct grain from 20,000 cups of sand.
It’s way worse than looking for a needle in a haystack.
But while in gambling, cold, hard numbers govern the odds, the chances of winning with a memecoin are not.
Rather, they depend more on the human factor.
Take it from a guy who has a double major in Physics and Mathematics: Memecoins are governed more by human behavior and sentiment than any quantifiable data set.
For memecoin investing, we look at non-mathematical factors like:
- Market cap: This tells us how big the coin already is … and how much further it can grow.
- Community strength: Because memecoins live and die by the popularity of their underlying memes, a strong community is essential. How much do the holders of the coin like it? Is it possible for cult-like behavior to form over the memes associated with the coin? How fanatical are the holders? Hint: Cults are bullish.
- Virality of the meme: Can the meme go viral? Does it have future mass appeal (like in the form of a cute mascot, say, a dog with a hat)? Or some other iconography that can represent some tongue-in-cheek rebellious side of the internet community?
- Trading volume over market cap: Volume/market cap is a measure of how much trading interest the coin gets.
- Longevity: Can this coin go to $100 million in market cap? And once it does, can it go further?
- Safety: Most new memecoins are a minefield. Anyone can launch a new one. We must use security tools to audit these memecoins to make sure it isn’t a rug pull — i.e., pull their liquidity from the trading pool, causing the coin value to go to $0.
As you can see, most of these factors are non-tangible and border on the slightly irrational. They require constant observation of market sentiment — i.e., what the market is paying attention to — and understanding liquidity flows.
But if you can dedicate the time to research and remain vigilant, then there can be big rewards in memecoin investing.
And you’re much more likely to get a piece of that pie with memecoins than by playing Powerball, too.
Just take a look at the following 30-day returns for the top memecoins as of today:
Despite already seeing massive growth last bull cycle, Dogecoin (DOGE, “B-”) and Shiba Inu (SHIB, “C+”) are posting impressive triple-digit gains.
Most remarkable, however, is the success of dogwifhat (WIF, Not Yet Rated) and Pepe (PEPE, Not Yet Rated). These two have led the memecoin market with explosive returns of over 700% and 500%, respectively, for the past month!
I assert that memecoins are and will continue to be the most prominent narrative/sector of crypto this year … provided you pick the correct ones, of course.
As I said, however, this will require a lot of effort on your part.
But there is one way you can ease that burden. Even better, it’s part of an overall strategy that specifically targets small-cap growth opportunities set to explode in this bull market.
My New Crypto Wonders co-editor, Juan Villaverde, will be sitting down with Weiss Ratings founder Dr. Martin Weiss this coming Tuesday, April 2, at 2 p.m. Eastern for an exclusive breakdown of this strategy.
Even better, this is your official invitation to join them.
Just be sure to reserve your seat and mark your calendar.
You don’t want to miss it. While the best of the bull market is still ahead of us, time is running out to prepare. And you’re going to want to know how to play the memecoin trend before the big rally hits.
So go ahead and save your seat. Then, I hope you’ll be able to join me in targeting the massive returns that memecoins can generate.
Best,
Dr. Bruce Ng
