Why are market prices of Shiba and Dogecoin skyrocketing in value despite the fact they are seen as memecoins. It is against sound investment reasons to see these funny and entertainment driven projects increasing in market capitalization.
I personally have the opinion that a crypto project that does not pass the Trendify 9G indicator is not fit to be invested into. The 9G indicator is a research tool that helps a crypto investor to know crypto projects that are solving big problems and that will probably have a future.
However, while the approach is very important to risk management, it is also very important to pay attention to the market. At the moment the price of some solid crypto projects are not increasing but the price of some shitcoins and memecoins are rallying.
What could be the cause and why should you pay attention.
I believe making money from crypto is primarily hinged on your ability to spot a trend and maximize the trend. This means regardless of the project, if you spot the trend in a memecoin, then take the risk and if the trend is in a real project, the risk is moderate.
Well, while all risk is not the same but risk is risk. Having said that, I was able to find out three reasons why memcoins are skyrocketing in value in recent times.
These three elements are what you need to be looking out for in the meme projects in order to spot the next wave of meme massive price gain. Here are the three factors and elements
How To Spot The Future Of Meme Token?
I shall be using Shiba inu, Dogecoin and Floki Inu as case studies. When you are able to spot these three elements in a meme crypto project, you should know that the future price increase of that token could increase.
Wherever people go, the money will follow, regardless of the importance of such activity. This is very important in the crypto industry.
What gave bitcoin value was largely due to the support of its active community.
The three memecoins (Shib, Doge and FLok) have very active communities.
These communities can be found on Twitter and Reddit. These communities help to promote the meme project through social media engagement.
When network effects have its course, such a project becomes a force in the crypto space. We have communities such as the dogearmy supporting dogecoin on Twitter and Reddit
Utility Projects Roadmap
When a meme crypto project starts pursuing how they build utility projects, then that is a sure sign of future high demand for the token.
A good example of this is Floki Inu (FLOK). There are three fundamental utility projects that promise to drive up the demand for its token.
These three flagship utility projects have the capacity to transition Floki Inu into one of the highly demanded tokens in the future. The projects are;
- The Valhalla NFT Gaming Metaverse:
This is a play to earn blockchain game that will be built on the Floki ecosystem. This game, according to the product lead of Valhalla, has the Axie Infinity Shard (AXS) model but with a step ahead of AXS.
Imagine playing a game and earning at the same time. Addiction plus incentive leads to super addiction. In order to play this game you need Floki Inu (FLOK) to form your team.
This means the demand for FLOK will rise and its supply will be low because token will be held for a long time.
- A Flokplaces Project:
This will be a marketplace where people can buy various items.
- Floki Inuversity:
This will be a platform for content creators. Since it is a blockchain project, it may be that the model will support what content creators earn while they create content on the platform. The earning may likely be in Flok.
The combination of these three utility projects will transition Flok into a token with high demand.
According to the Floki whitepaper, the meme crypto project was named after Elon Musk’s dog. Kimbal Musk, elon Musk’s younger brother’s establishment is also in partnership with the Floki project.
Imagine the combined effect of the above three factors on the price of a meme coin.
The aim of this article is to help you to spot a meme coin that could become a token of value in the future. What you need to do is to ask the three important questions about a memecoin;
Do they have an active community? Does it have utility projects in its roadmap? Does it have celebrity endorsement?
If the answers are yes, then you may consider taking a risk on such a project. However, remember to invest what you can lose as namecoin projects can become worthless.
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