How to discover the next golden opportunity? Look for those assets that can stir your emotions.

CN
2 months ago

In the world of Meme coins, emotional intelligence (EQ) is far more important than intelligence quotient (IQ).

Written by: OnlyApes

Translated by: Deep Tide TechFlow

Welcome, friends!

Recently, the on-chain Meme market has been very active, which is part of the reason for the delay in publishing this article. I will try to publish future articles more quickly.

When you first start paying attention to Meme coins, you will be bombarded with a continuous stream of coins. Thousands of new coins are launched every day, but only a few are worth your time and investment. Today, I will share my personal framework for choosing Meme coins. I have noticed that all those who have been successful in trading Meme coins share similar philosophies, yet differ due to their personal life experiences.

A key aspect of choosing Meme coins is understanding which ones you should buy; this process is personalized and authentic. Of course, there are some universal, widely recognized winners. However, in some cases, with your unique perspective, you may discover coins that others have not fully understood.

You can think of each Meme coin as targeting a specific market. Each good coin should resonate with a particular group. These groups have unique values, beliefs, cultures, and emotional responses to events. The deeper your understanding of a coin's target market and its ability to gain recognition within that group, the more likely you are to find a successful coin.

This is why simple concepts like "cute puppies" can garner such massive attention. Almost everyone can resonate with cute puppies. This is also why tokenizing existing Memes can have a powerful effect. However, it is currently very difficult to know which cute puppy to buy.

There are just too many coins and cute puppies.

I will simplify the process of choosing puppies and kittens to: only buy those coins that have already been successful. It is unlikely that you will encounter a new Dogecoin or Catcoin that reaches a market cap of billions.

If you insist on looking for Dogecoins, I suggest focusing on some special cases, such as Doge's owner adopting a new dog named Neiro. Only focus on new animal coins that already have some fame or borrow the fame of other well-known coins. However, this part of the market has become so "PvP" that I personally choose to ignore all newly launched famous animal Memes. If you must participate, either buy all the coins that are currently PvP or wait until winners are selected and then participate, while being aware that your coins may face the risk of "vampire attacks." Personally, I can completely avoid boundless gambling, so I usually choose not to participate.

I have a key belief: you do not need to make money on any specific Meme. Aside from getting some likes online, buying a coin that everyone talks about for a few days is completely irrelevant. You just want to collect those coins in your Meme portfolio that significantly outperform mainstream coins (BTC, ETH, SOL) and maintain profits.

The focus today is to provide a framework for selecting Meme coins. This also means being good at ignoring Meme coins, especially in the early stages when you should be collecting data points.

Why do people buy Meme coins?

This is a profound question, and everyone has their own answers. Some people buy them because they might gain huge financial returns, while others find them entertaining.

In the context of Crypto Twitter, people mainly buy Meme coins because they believe others will buy them.

Current mainstream trends include:

  1. Ordinary crypto investors buy coins they believe non-ordinary crypto investors will buy at some point in the future (mass market).
  2. Ordinary crypto investors buy coins they find interesting (crypto market).

Coins in both the mass market and crypto market can perform well. Until a real bull market emerges with a large number of ordinary participants, you need to focus on those coins that at least perform well in the crypto market.

Framework

If you want to make quick money in the Meme coin space, you need to pay attention to the speed of attention flow. In other words, when you are making short to medium-term investments, the main goal is to look for potential viral spread.

"But who can know what will go viral!"

Any qualified content creator will tell you that this is simply not true. Anyone with a certain fan base has at least experienced a few viral moments.

Remember I mentioned that everyone has unique experiences guiding their choice of Meme coins? For me, this is about understanding how people react when creating written content.

Meme coins are essentially a form of content you can speculate on.

When I create content for crypto protocols, I aim to enhance my copywriting skills. I stumbled upon a very useful framework created by YouTube/Twitter content creator Shaan Puri.

When I sat down to analyze my Meme coin framework, I realized that many principles of viral content were applied in the selection of Meme coins, and it indeed works.

Like viral content, every excellent Meme coin can evoke emotional resonance.

I adjusted this framework to make it more suitable for Meme coins.

You need to focus on those Meme coins that can evoke the following emotions:

Cute — "Wow"

This typically includes your standard dog, cat, hippo coins. By the way: I think Moo Deng is ugly and not cute at all. However, ordinary people like it, so let it rise to a billion dollars.

Funny — "Haha"

Everyone has a unique sense of humor, but ideally, you want something that makes you laugh to also make many others laugh. If your sense of humor is not understood by anyone, you might be out of luck.

Shock and Awe — "Incredible!"

Stunts like little people fighting, someone self-immolating, or anything that can evoke a sense of wonder.

Absurd — "What the heck?"

Similar to shock and awe, but more focused on stupidity. "Brain-dead" coins like Skibidi Toilet fall into this category.

Anger — "That's so offensive / Not allowed"

Anything controversial. Racist Meme coins fit in here. (Note: Actual buyers are not the ones who feel angry about the concept of the coin. The real target is to make others feel angry, thus sparking discussion and attracting attention.)

Disgust — "That's so gross"

I don't have good examples of Meme coins for this, but I mention it because it applies to content. I think this is the weakest emotional trigger for me because I don't want to repeatedly see things I find disgusting in my Meme collection.

We live in a world of endless content.

You need emotional triggers to capture people's attention.

Meme coins are just tokenized attention.

Note: Emotional triggers are not the only reason for the success of Meme coins. A better way to understand the framework is that when emotional triggers are present, the likelihood of success is higher. There are many other factors at play in the Meme coin space (such as holder base, distribution, mainstream meta). Emotional triggers help Memes get noticed.

Typically, coins that extend from existing brands, followers, or recognizable movements can bypass the need for emotional triggers. Because people have already established emotional connections, attention follows. This is a significant driving factor in the ZYN argument I published in March. When you add emotional triggers to these types of Meme coins, they have the potential to truly explode.

When you combine multiple emotional triggers, the results can be very crazy. Racist joke Meme coins perform well for this reason. They evoke anger and disgust among those who dislike these coins, while others find them funny. This creates an emotional collision that attracts attention. Think of coins like Retardio, George Droyd, Indian Call Centre (rest in peace). (Let's temporarily set aside the moral discussion of racist Meme coins in this article—I am just explaining why they rise and the reasons behind it.)

A great example of absurd and funny is Mark Cuban's parody coin CHABENISKY. It also leverages his celebrity effect to attract more attention. Some are drawn to it because it is funny, others because it is strange/absurd, and some may feel anger towards Mark.

Do not assume that your reason for buying a coin is the same as others. Ultimately, the value of your coin depends on the value of the holder network. A coin needs to be able to reach the target buyer network and evoke emotions in them.

In summary, in the world of Meme coins, emotional intelligence (EQ) is far more important than intelligence quotient (IQ).

Management Tips

Meme coins have proven to be a permanent component of cryptocurrency. This means that taking the time to master the creation and trading of Meme coins is worthwhile. They are the most convenient opportunity for anyone to create a project that could reach millions.

Many people ask me what bots and tools I use on Solana, so this might be worth writing a separate article. You might not believe it, but I spend most of my time using the Jupiter frontend and Phantom wallet. A few weeks ago, Jupiter released its own trading terminal, and I tested it, resulting in a significant improvement in my execution efficiency. Over the past few months, I may have lost tens of thousands of dollars trading with basic tools.

It is not perfect (setting slippage too high when executing trades during high volatility can be troublesome), but it is definitely better than what I was using before. If you think there are better trading bots, please let me know, and I will give them a try. Jupiter's fee is 0.50% per trade, which is sufficient for me. I prefer to keep things simple and focus on my Meme selections rather than the complexities of various tools.

Important Note: I have not conducted any research on the security of this trading terminal. You should not put your entire portfolio into Meme coins. If you really do, please do not send all your funds to any trading bot. This is just to manage smaller investments through an actively managed strategy. As I mentioned in the previous article, the Meme coin space is more about tracking trends and finding coins to add to your Meme portfolio. Due to the asymmetry, you do not need to take on too much risk in terms of portfolio size.

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