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Investing in meme coins: Key strategies from Giottus co-founder Arjun Vijay

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Investing in meme coins: Key strategies from Giottus co-founder Arjun Vijay
In recent times, meme coins have become a hot topic in the cryptocurrency world, delivering astronomical returns and capturing the imagination of investors. In a recent live stream session on ETMarkets, Arjun Vijay, Co-Founder & COO of Giottus, highlights that coins like Doge with Hat, Pepe, and Floki have shown remarkable gains, far outperforming traditional equity markets and even major cryptocurrencies like Bitcoin and Ethereum. Let’s delve into the world of meme coins to understand their allure, their unique characteristics, and how to navigate this volatile market.The origin and evolution of meme coins

The concept of cryptocurrencies began in 2009 with the release of Bitcoin by the pseudonymous Satoshi Nakamoto. Bitcoin’s decentralised nature and its potential for facilitating global transactions without a central authority revolutionised the financial world. This paved the way for other blockchain-based platforms like Ethereum, Solana, and Tron, which support decentralised applications (dApps).

In 2013, the idea of a humorous cryptocurrency emerged, leading to the creation of Dogecoin. This coin, inspired by a popular dog meme, started as a joke but quickly gained traction. Its success opened the floodgates for a plethora of other meme coins, such as Shiba Inu, Pepe, and Bonk, each leveraging playful themes and vibrant community engagement.

What sets meme coins apart?

Unlike traditional cryptocurrencies, which often offer some form of utility — whether as a medium of exchange, a platform for smart contracts, or a tool for decentralised finance — meme coins primarily exist for entertainment. They are digital collectibles, much like Pokemon cards or stickers, and their value is largely driven by community sentiment and social media buzz.

The strength of a meme coin is directly tied to the fervour and size of its community. Enthusiastic supporters, such as the Shiba Army or Doge Army, actively promote their favourite coins, creating a self-reinforcing cycle of demand and hype. This community-driven dynamic makes meme coins unique but also highly volatile.

Navigating the meme coin market

Investing in meme coins requires a different approach compared to traditional assets. Here are some expert tips to help you navigate this unpredictable market:Community Analysis: A strong and active community is a key indicator of a meme coin’s potential. Assess the number of holders, the level of social media engagement, and the overall sentiment. Platforms like CoinMarketCap and Birdbird.so can provide valuable insights into these metrics.

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Entry and Exit Strategies: Timing is crucial in the meme coin market. Historical patterns suggest that cryptocurrency bull markets often coincide with Bitcoin halving events. Prices typically rise significantly before halving, lifting meme coins and altcoins. However, prices may reverse and crash about a year after halving. Planning your exit before the bull run ends can help protect your gains.

Diversification and Risk Management: Limit your overall investment in meme coins to a small percentage of your portfolio. Start with 1-2% of your total wealth and increase to 5% as you gain more understanding and confidence. Within this allocation, diversify across multiple meme coins to spread the risk.

Profit-Taking Strategy: Regularly book profits to lock in gains and mitigate losses during downturns. Monitor market cap, trading volume, and signs of weakness or large sell-offs by major holders.

Tools for tracking and investing

There are several tools and platforms available to help investors track and identify promising meme coins. Birdbird.so, for instance, categorises different ecosystems like Solana, Sui, Ethereum, BNB Chain, Arbitrum, Optimism, Base, Polygon, and Avalanche. It provides insights into trending tokens, trading volumes, and the performance of various coins over the past week. This information can help investors shortlist potential meme coins and make informed investment decisions.

Final thoughts

Investing in meme coins is akin to buying a lottery ticket. It’s a high-risk game that requires careful planning and a clear strategy. While the potential for significant returns exists, so does the risk of substantial losses. By understanding the unique dynamics of meme coins, analysing community strength, timing your investments, and diversifying your portfolio, you can better navigate this volatile market.

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Always remember to limit your exposure in meme coins and maintain a diversified investment portfolio to mitigate risks. Keep your meme coin trades separate from other investments and have a strict stop-loss plan in place. By combining technical analysis, fundamental analysis, and market sentiment, you can make more informed and strategic investment decisions in the world of meme coins.

(This article is based on insights shared by Arjun Vijay, Co-Founder & COO of Giottus, during an ETMarkets live stream)

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)

(You can now subscribe to our ETMarkets WhatsApp channel)

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Report: Coinbase Asset Management Creating Tokenized Money Market Fund

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Report: Coinbase Asset Management Creating Tokenized Money Market Fund

Coinbase Asset Management is reportedly creating a tokenized money market fund.

The company, which is an arm of cryptocurrency exchange Coinbase, is working on the project with Bermuda-based Apex Group, CoinDesk reported Wednesday (July 24).

This effort follows another move in the tokenization space by Coinbase Asset Management, according to the report. The company received in-principle approval from an Abu Dhabi regulator in December 2023 to tokenize traditional assets on its ethereum scaling network called Base.

It also comes after asset manager BlackRock introduced a tokenization of real-world assets: a fund called BUIDL that holds U.S. Treasurys and gained $500 million of assets following its launch in March, per the report.

Tokenization of real-world assets has become a big trend in crypto, the report said.

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It was reported in May that Coinbase has been diversifying its revenue sources and generated about a third of its sales in the first quarter from sources other than trading fees.

These sources include revenue share on USDC stablecoin and revenue from its Base blockchain. Coinbase also serves as the custodian for most U.S. spot bitcoin ETFs and is listed as a custodian for spot ether ETFs that are expected to be OKed by regulators.

In another move in the tokenization space, Ripple and Archax said in June that they extended their existing collaboration in an effort to bring hundreds of millions of dollars of tokenized real-world assets (RWAs) onto the XRP Ledger (XRPL) over the coming year.

“We have hit the tipping point for mainstream adoption of digital assets for real-world use cases,” Graham Rodford, CEO at Archax, said in a press release. “There is clear real-world utility in use cases like RWA tokenization for the operational efficiency, access to liquid markets and transparency inherent to crypto, and Archax has already tokenized assets such as equities, debt instruments and money market funds.”

The tokenization of real-world assets is a function of the blockchain landscape that has captured the imagination of various players across payments, finance and commerce, PYMNTS reported in April.

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Tokenized RWAs have the potential to make assets more liquid, accessible and efficient while enhancing transparency, security and global reach.


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In 5 Yrs, NCB Registered 92 Drug Trafficking Cases Involving Darknet, Cryptocurrency: Govt

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In 5 Yrs, NCB Registered 92 Drug Trafficking Cases Involving Darknet, Cryptocurrency: Govt

New Delhi: The Narcotics Control Bureau (NCB) has registered 92 cases related to the use of darknet and cryptocurrency in drug trafficking in the last five years, Rajya Sabha was informed on Wednesday. In response to a written question, Minister of State for Home Affairs Nityanand Rai said, “Use of darknet, cryptocurrencies and parcel and couriers for drug trafficking have been noticed.”

Data provided by the ministry in the response showed that between 2020 and 2024 (till April), the NCB has registered 92 cases in connection with the use of darknet and cryptocurrencies in drug trafficking.

According to it, the bureau registered three such cases in 2020, 49 in 2021, eight in 2022, 21 in 2023 and 11 till April this year.

In addition, 1,025 cases involving parcel and couriers in narcotics trafficking have been reported by all drug law enforcement agencies during the period, it said.

To tackle the trend, a special task force on darknet and cryptocurrency has been constituted to monitor suspicious transactions related to drugs on the darknet, Rai said.

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“The Narcotics Control Bureau in association with Interoperable Criminal Justice System (ICJS) has created a portal called National Integrated Database About Arrested NDPS Offenders (NIDAAN),” he said.

Rai added that an NCORD portal has been developed as an all-in-one portal for information related to drug law enforcement.

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Ferrari Expands Cryptocurrency Payment To Europe After US Success

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Ferrari Expands Cryptocurrency Payment To Europe After US Success

European customers can now buy a Ferrari with crypto.

Less than a year ago, Ferrari launched the ability for its United States customers to pay for their cars with cryptocurrency. Since then, adopting the new and rather futuristic payment form has proven successful for Ferrari and its US-based customers, as the Prancing Horse has announced today that because of said success, the same service has now expanded, launching in Europe, as well.

Ferrari will extend its cryptocurrency payment system to European dealers from the end of July. However, the historic supercar manufacturer won’t stop there. By the end of 2024, other countries in Ferrari’s international dealer network, where cryptocurrencies are legally accepted, will adopt cryptocurrency payment.

To address security concerns, Ferrari is leaning on the expertise of various companies in the crypto field. In addition, dealers can accept payments without needing to manage cryptocurrency directly, converting it immediately into traditional currency. Ferrari’s partners will be able to verify the sources of crypto transactions and prevent them from being affected by price fluctuations from exchange rates. By now accepting crypto payment in Europe and soon worldwide, Ferrari is leaning into futuristic technology throughout the scope of its brand.

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