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Meme Coin Mania: Why Shiba Inu, PEPE, Dogecoin Are Far From Finished

As the crypto market experiences another wave of fervent enthusiasm, meme coins like Shiba Inu, PEPE, and Dogecoin have surged to the forefront of investors’ minds. With PEPE leading the rally at a staggering 371% increase, Dogwifhat (WIF) at 351%, FLOKI at 331%, BONK at 182%, and Shiba Inu (SHIB) at 177% over just the last seven days, the phenomenon has caught the eye of both enthusiasts and skeptics alike.

Meme coin mania

Why Shiba Inu, PEPE, DOGE Will Continue To Rally

Andrew Kang, co-founder and partner at Mechanism Capital, offered a deep dive into the dynamics fueling this unprecedented meme coin frenzy. Kang, sharing his expert analysis on X, articulates the foundational appeal of meme coins: “People are really calling top on meme coin season when BTC hasn’t even crossed ATH yet. Meme coins are a global shelling point for speculative liquidity.”

He stresses the accessibility of meme coins as a crucial factor in their explosive growth, positioning them as more globally accessible than any traditional stock. This accessibility, combined with a universal speculative interest, has led to Dogecoin’s significant outperformance compared to phenomena like the GameStop stock frenzy.

The historical context Kang provides is telling of the potential he sees in this cycle. “Total Meme coin market cap last cycle was $100 billion last cycle, and we usually get multiples on market cap highs every cycle,” he notes, suggesting that the current market conditions are ripe for surpassing previous records.

His insights reveal a broadening demographic of meme coin investors, including high-net-worth individuals, hedge funds, and even traditional financial institutions, all drawn in by the speculative allure and community-driven narratives of these assets.

Meme Coins Are A Skill-Based Lottery

Kang’s perspective on the meme coin ecosystem is particularly illuminating. He likens it to a “Skill-based Global Lottery Platform,” where success is part skill, part community effort, and part viral momentum. “We are going to reach some serious levels of mental retardation for memecoins this cycle […] And the more people that they get to buy the same tickets at them, the more likely they and their friends win – that’s the best feeling – winning together,” Kang elaborates. This communal aspect of meme coin trading, combined with the thrill of speculation, underscores the unique appeal of meme coins as both a financial instrument and a social phenomenon.

Expanding on the potential scale of meme coin growth, Kang draws an ambitious parallel with the global lottery industry, which boasted $300 billion in sales in 2020. “Now imagine the valuations of memecoins if a capital injection of that scale were to flow into them,” he muses, positing a future where meme coins command a significant portion of global speculative investment.

Kang also critiques the broader cryptocurrency market, suggesting that the complexity and niche appeal of many projects may limit their attractiveness to the general public. “The masses won’t care about the 4th liquid restaking derivative or whatever fancy new technology […] Memecoins are just a much more pure and upfront speculative vehicle,” he states, predicting that meme coins could outperform more technologically complex crypto assets by a wide margin.

The King Of All Meme Coins

A strong advocate for strategic investment in meme coins, Kang draws an analogy a Bitcoin investment for tradfi investors, suggesting that a small, measured allocation to meme coins could offer disproportionate rewards. “Advocating for a 1-5% portfolio allocation of memecoins is like boomers advocating for 1-5% portfolio allocation of BTC,” he says, emphasizing the blend of high risk and high reward that meme coins represent.

Highlighting Dogecoin’s unique position within the meme coin space, Kang points to its potential for real-world application and celebrity endorsements as key factors in its potential for dominance. “DOGE is the king of memecoins […] Elon is a people’s man and I doubt he keeps his silence on Doge/X payments much longer. […] Sam Altman has 1% float WLD and Elon has DOGE. It is obvious that the AGI will choose the more decentralized currency,” he suggests.

At press time, Shiba Inu traded at $0.00002642.

Shiba Inu SHIB price

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This Small Cap Memecoin Can ‘Rival Dogecoin And Shiba Inu’: Crypto CEO

Andrew Kang, co-founder of Mechanism Capital, has recently stirred the crypto community with his announcement on X (formerly Twitter) about the firm’s strategic shift towards a highly specific and potentially volatile segment of the crypto market: Trump-themed meme coins and NFTs. This move marks Mechanism Capital’s pioneering investments for 2024, targeting a niche yet explosive area of digital assets that intertwine the realms of politics and meme culture.

Leveraging The Attention Economy

At the heart of Mechanism Capital’s investment strategy is the concept of the attention economy, which Kang describes as the cornerstone of meme coin valuation. “Meme coins are all about the attention economy, and Trump is probably one of the best attention monopolizers in the world,” Kang articulated, highlighting the unique opportunity presented by Donald Trump’s omnipresence in the media landscape.

This strategy leverages the continuous and polarizing coverage of Trump, especially relevant during the ongoing US primary elections. Kang elaborates on this, noting, “US Primary elections just started so now you have a state/territory election every week or two until summer so he is CONSTANTLY in the news cycle.”

The implication is that Trump’s ability to remain a focal point of media attention could drive unprecedented interest and speculation in Trump-related digital assets.

Notably, not only the elections but also the court cases and indictments that are set to go to trial that could serve as catalysts for more attention, according to Kang, who further elaborated: “The federal election subversion case, Mar-a-Lago classified documents case, Georgia election subversion case, New York hush money case, Trump Organization civil fraud trial, etc.”

The Strategic Focus On TRUMP Coin

Mechanism Capital’s investment spotlight shines on the TRUMP meme coin, a digital asset that Kang believes has the muscle to stand toe-to-toe with crypto giants like Dogecoin and Shiba Inu. Kang’s conviction comes from the fact that TRUMP (MAGA) has the highest market cap.

“IMO only the highest market cap one will have any longevity and serve as shelling point for all TRUMP related speculation,” Kang stated. He added that the TRUMP memecoin also possesses a vibrant community and positive dynamics that surround it.

“Have spent some time in the main TRUMP group chats, talking with dev/team members and listening to spaces and all I will say is that the vibes are good,” Kang shared, underscoring the significance of community engagement and sentiment in the trajectory of crypto memecoins.

Acknowledging the inherent risks associated with meme coin investment, Kang pointed to the historical resilience of similar coins as a beacon of potential success for TRUMP coin.

He recalled, “There’s risks with all shitcoins, but it should also be pointed out that the main risk here is that Trump himself dumps all his TRUMP… That could either kill it immediately or it could go the path of DOGE/SHIB,” drawing parallels with the challenges (Vitalik Buterin burned $1.7 billion in SHIB) and subsequent recoveries faced by Dogecoin and Shiba Inu.

Donald Trump Is A MAGA Whale

Supporting Kang’s bullish stance, Arkham Intel recently unveiled that Donald Trump’s TRUMP coin holdings skyrocketed in value, yielding a staggering 15,000% return. Initially valued at $7,100, these holdings have now ballooned to an impressive $1.5 million. This explosive growth not only highlights the speculative appeal of TRUMP coin but also its potential for astronomical returns.

Donald Trump's crypto holdings

The TRUMP meme coin differentiates itself with a unique tokenomics structure, imposing a 1% tax on transactions. This tax is allocated to various causes, including US Veterans, Child Trafficking Prevention, and the coin’s marketing, development, and liquidity. With a supply cap of 47 million, the coin aims to strike a balance between fostering speculative growth and contributing to societal causes, encapsulated by its slogan “Make Crypto Great Again.”

At press time, TRUMP traded at $2.86.

TRUMP memecoin