What is Memecoin? An Indepth Look at The New Coin from 9Gag
The crypto market has seen the emergence of a new sector – memecoins. These digital currencies based on internet memes and viral content have quickly captured the public imagination and seen their valuations skyrocket.
The trend was spearheaded by Dogecoin, launched in 2013 as a lighthearted alternative to mainstream cryptocurrencies like Bitcoin. Dogecoin successfully built a vibrant community centered around its mascot, the Shiba Inu “doge” meme. This led to a surprise surge in 2021, with DOGE briefly reaching a $90 billion market cap.
Its success paved the way for a slew of memecoins to capitalize on the hype. Most notable was Shiba Inu coin (SHIB), which soared over 1,000,000% within a year of launch. The “Dogecoin killer” highlights the wild speculation and community-driven rallies that can propel meme tokens to stardom.
The latest to join this memecoin mania is Memecoin ($MEME), launched by internet humor platform 9GAG. Within days of debuting, MEME has risen to a valuation of over $200 million.
But does it have real staying power or will it fade into obscurity like many meme fads? This article will analyze Memecoin’s launch, performance, and future prospects in the evolving memeconomy.
Quick Facts
9GAG CEO Ray Chan recently launched a new meme coin called Memecoin (MEME). It has quickly grown to a $200 million market cap.
Memecoin was launched through an airdrop and firesale event, distributing the supply and incentivizing participation in the ecosystem.
There is a vesting schedule to gradually release the total supply of 69 billion MEME coins over 18 months. This aims to stabilize the price and prevent oversaturation.
Memecoin’s launch strategy of firesale pricing and airdrops allowed early participants to see significant returns on investment.
The structured release of Memecoins is a tactical move to sustain the ecosystem’s value by avoiding price crashes.
Memecoin’s future utility remains to be seen but could significantly impact its valuation if integrated into platforms.
Memeland, the venture behind Memecoin, is positioning itself similarly to Yuga Labs, with rewards for holders and a gamified ecosystem.
Memecoin ($MEME) Launch and Release Strategy
Memecoin is the latest crypto creation of internet company 9GAG and its CEO Ray Chan. 9GAG is best known for its viral meme content and has an audience of over 100 million.
With Memecoin, 9GAG is venturing into the blockchain space by launching a cryptocurrency tied to its brand and community. The company created Memeland, a venture studio focused on the intersection of social media and crypto.
Memecoin debuted through an innovative distribution strategy centered around a firesale event and airdrops. The total supply is 69 billion MEME coins, which will be gradually released based on a vesting schedule.
The $MEME (@Memecoin) from Airdrops and FireSale will be open for claim at 2023-11-03 07:30 (UTC).
Deposit to @binance has already been open:
https://t.co/MpohPYCBfP$MEME will then be listed on Binance at 2023-11-03 08:00 (UTC).
LFG! AHOY! ????
— Memeland Memecoin (@Memeland) November 3, 2023
The firesale allowed early buyers to purchase Memecoins at meme-inspired prices like 0.42069 ETH per MEME. This creative pricing together with airdrops to select token holders drove hype and incentive to participate.
The airdrops distributed coins to holders of ‘MVP’ (9GAG’s NFT), ‘Captains’ and ‘Potatoes’ tokens. This rewarded existing ecosystem participants and attracted new ones.
A key part of the rollout is the vesting schedule that releases coins over 18 months. Only a portion of the supply entered circulation initially. This controlled approach aims to prevent price volatility and oversaturation.
By tying distribution to gamified events and gradual vesting, Memeland has implemented a launch strategy designed to build sustained value for Memecoin. It avoids flooding the market, while attracting engagement through rewards.
Memecoin Performance and Market Response
The innovative launch strategy quickly proved effective, as Memecoin swiftly rose to a market capitalization of over $200 million within the first day of trading.
Memecoin is currently trading at around $0.003, exhibiting high volatility typical of freshly launched meme tokens. Trading volume has consistently been in the tens of millions per day.
In the short time since its debut, MEME has seen both price spikes and crashes of 40-50%. But it has maintained a elevated price level compared to the firesale rate, indicating a positive market reception.
Social media chatter on the coin has exploded, with crypto influencers and meme account holders diving into the frenzy. The combined power of the 9GAG community and meme culture has amplified the hype.
While skepticism exists whether the valuation is supported by fundamentals, the memecoin phenomenon has always been more about hype-driven growth. On that front, Memecoin has succeeded in capturing substantial interest and carving out a position in the memecoin landscape.
Its prices and viral traction mirror early stage surges of Dogecoin and Shiba Inu. However, sustainability of value will depend greatly on maintaining community excitement and expanding real-world utility.
Utility and Integration
At present, Memecoin lacks concrete real-world utility, as is common among newly launched meme tokens. Its current usage is limited to trading on decentralized exchanges and holding for speculative gains.
However, Memeland has hinted at plans to integrate MEME into its broader ecosystem and onboard users through creative initiatives.
Potential use cases proposed include tipping for creators on Memeland’s platforms, discounts and perks for token holders, acceptance for payments of Memeland NFTs, staking programs, and metaverse integration.
If Memecoin can successfully transition beyond just being a meme token and have tangible utility for 9GAG’s audience, it will set itself apart from other ephemeral memecoins.
Integration with 9GAG’s suite of offerings around social media, NFTs, gaming, and the open metaverse could provide real user cases and onboard a ready market.
Cross-platform functionality and adoption as a digital currency within that ecosystem can allow MEME to build lasting value. This will rely significantly on execution by the Memeland team.
Uptake of MEME for payments, loyalty programs, and staking tied to tangible benefits may enable it to break out as a functional currency, rather than just a vehicle for speculation.
Competitor Analysis
In the memecoin space, the dominant incumbents are Dogecoin and Shiba Inu, which command market caps in the billions. As pioneers of the category, they enjoy first-mover advantage and strong brand recognition.
Dogecoin retains the most legitimacy of the class, having built a payments and tipping ecosystem. Shiba Inu currently leads in hype and commercial partnerships like its Shibarium blockchain.
Newer entrants like Samoyedcoin have also garnered interest by riding the dog meme mania but have yet to seriously challenge the top dogs.
Memecoin’s main edge is association with top meme platform 9GAG and its CEO Ray Chan’s industry expertise. This gives it a leg up in tapping into the meme economy and collaborating with creators.
However, meme projects like DogeDash on the Solana blockchain also maintain vast creator networks and outreach. Memecoin will need to leverage its parent company’s resources to stand out.
Upcoming meme coins like crypto presale ApeMax could also siphon interest with novel concepts like “Boost-to-Earn”. Memecoin will need constant innovation to stay ahead of copies.
Memecoin could demonstrate the clout to gain short-term market share. But it requires long-term planning to match the most prominent meme coins in stability and utility. Deep integration with Memeland’s offerings can provide the ecosystem viability needed to compete.
Future Outlook and Projections
In the near-term, Memecoin is likely to see high volatility as speculators drive up prices and take profits. Major price swings in both directions can be expected while hype remains high.
If merchant adoption and platform integration begin, MEME could start stabilizing and cementing an elevated price floor within a few months. Some analysts predict prices reaching $0.20 to $0.50 based on demand.
However, meme coins carry significant risk of crash if community interest rapidly wanes. To avoid this fate, Memeland must have continual initiatives underway to build real utility and onboard users.
Expanding beyond just trading into payments, NFT transactions, staking programs, and metaverse integration can provide the necessary foundations.
With major milestones like integration into 9GAG apps expected by mid-2023, Memecoin could ride the momentum to establish itself firmly in the meme economy.
Market opinions are divided on Memecoin’s ability to remain a steady top 20 token given its competition. But its fair launch strategy and association with a major internet company give it better longevity prospects compared to most meme coins.
If executed well, Memecoin can emerge as an integral part of the social media, NFT, and creator ecosystem Memeland seeks to build. This would make its stature less reliant on hype alone.
Conclusion
Memecoin’s launch marks another milestone in the evolution of the memecoin ecosystem. Leveraging the power of an established brand like 9GAG, it has shown the ability to gain short-term traction.
However, sustaining long-term value will require strategic integration that transitions MEME from just a speculative asset to a functional currency. Memeland’s vision of a tokenized social media economy can provide fertile ground if executed judiciously.
Competition in the space is heating up, requiring constant innovation. But Memecoin has the advantage of a sophisticated launch model and being tethered to a broader emerging ecosystem.
The memecoin phenomenon continues to fascinate as new entrants attempt to ride waves of hype to meteoric gains. But fundamental utility will separate fledgling successes like Memecoin from the swathes of failures. Its unconventional debut has given it a fighting chance to move from meme to mainstay.
The post What is Memecoin? An Indepth Look at The New Coin from 9Gag appeared first on Blockonomi.
Filed under: Bitcoin - @ November 6, 2023 4:18 pm