Although risky, numerous meme coins are likely to have upside potential given the resurgence of meme traders
Meme coins are in the spotlight amid the recent resurgence of meme stock investors GameStop (NYSE:GME) rose more than 1.5 times within a month. Although meme coins rarely have the necessary fundamentals to justify their value, other influencing factors make their price movements predictable. For example, technical indicators and beta analysis can be taken into account.
However, investing in meme coins remains risky. That’s why I recommend you consider your ability and willingness to take risks before investing in them. Additionally, the meme coin has yet to establish itself as a sub-asset class, meaning lasting gains are unlikely. Instead, investing in meme coins is opportunistic.
If you’re okay with the risks involved, then here are three meme coins worth considering.
SafeMoon V2 (SFM-USD)
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SafeMoon V2 (SFM USD) is a decentralized token based on the Binance (BNB-USD) Smart Chain Network. The novelty lies in the punishment function, which rewards long-term holders while penalizing sellers, providing asymmetric return opportunities.
To expand on the above: The coin’s ecosystem includes a 10% Sales fee, half of which is redistributed to existing holders. The other half uses SafeMoon to increase its liquidity.
Despite its asymmetrical properties, SafeMoon has more than lost 70% its value last year. I believe that the losses are due to the community’s waning interest and the endless supply of 1 trillion tokens. However, a recovery appears likely as the resurgence of the meme crowd coupled with high beta stock activity aligns SafeMoon’s prospects.
SafeMoon is a risky asset, but worth keeping an eye on.
Akita Inu (AKITA-USD)
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Akita Inu (AKITA USD) rose by more than 20% Day after day at the time of writing this article. I wanted to highlight this fact because it conveys the possibility of a resurgence of Akita Inu’s community-driven investor base. The meme coin is still down more than 70% year-over-year; However, I think there has been a turnaround due to risk-on market activity.
For those who don’t know, Akita Inu started out as a meme but branched out into this avalanche (AVAX-USD) Blockchain, enabling faster and more comprehensive transactions. Additionally, the token is locked Uniswap V2 (UNI7083-USD), which ensures sufficient liquidity and additional stability.
A disadvantage of Akita Inu is that it operates in a crowded space and its main goal is to act as a means of transaction. Additionally, the supply cap of 100,000 billion Akita Inu is outside the norm, meaning price maintenance is unlikely. Still, it is a community-run coin supported by interim advances.
Dogelon Mars (ELON-USD)
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As embedded in his name, Dogelon Mars (ELON USD) is a coin associated with Elon Musk, whose community initially joked that the coin would be used on Mars if Musk made it habitable. I emphasize the coin’s community because that’s pretty much all there is to evidence of. Last time I checked, Dogelon doesn’t have a white paper; Furthermore, there is limited information about the founder(s). Investors therefore only have to follow the grapevine.
The good thing about Dogelon Mars is that it is fully distributed to holders, meaning the founder(s) have not hoarded coins to profit from secondary holders. Therefore, from a community perspective, one can argue for a green flag.
Dogelon Mars is an ERC-20 token based on the ether (ETH-USD) Blockchain. It is available and tradeable on Uniswap. Sure, the future of Dogelon Mars is uncertain. However, I believe that Musk’s bubbling and growing presence gives substance to the development of this memecoin.
As this article highlights again and again, meme coins are risky investments, and Dogelon Mars is no different. However, I am optimistic about Dogelon Mars’ prospects in this risky market environment.
On small capitalization and low volume cryptocurrencies: InvestorPlace does not regularly publish commentary on cryptocurrencies whose market capitalization is less than $100 million or whose trading volume is less than $100,000. Because these “penny cryptos” are often a playground for fraudsters and market manipulators. If we publish a comment on a low-volume crypto that may be affected by our comment, we ask InvestorPlace.com writers to disclose this fact and warn readers of the risks.
Read more: How to avoid popular cryptocurrency scams
At the time of publication, Steve Booyens did not hold, directly or indirectly, any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s publication policies.
