Thread by @AlecTorelli

I've spent the past week deep in the trenches with meme coins, and I think I just found the next Shiba Inu.

A thread on The Ultimate Guide to Meme Coins.

2/ Meme coins are just what they sound like, cryptocurrencies based on a meme.

You’ve likely heard of Dogecoin, the original meme coin, which was founded back in 2013 as a joke by IBM software engineer Billy Markus and Adobe software engineer Jackson Palmer.

3/ Fast forward to 2021, and Dogecoin reached a peak market cap of over 75 billion dollars.

Most recently Shiba Inu broke a market cap of 30 billion, where one lucky trader turned $8,000 into a 5.7 billion dollar fortune.

4/ Meme coins typically have several commonalities.
First, they strategically utilize a very low coin price by arbitrarily creating a large supply.

Most have 1 trillion tokens, which prices the coin at something ridiculous like $0.00000001.

5/ This allows non savvy investors (in poker we call them ‘fish’) to be tricked into thinking they’re buying something cheap.

Remember, the true value of a coin is its market cap (supply x price).

6/ Second, meme coins use fancy tokenomics strategies such as a burn mechanism which removes a small portion of the tokens from circulation or ‘free airdrops’ which reward holders with free tokens on a daily basis.

7/ They do this by charging a high tax every time their token is bought and sold, and then redistributing that back to their early adopters.

This gives people the illusion they are gaining wealth.

After all, who doesn’t like free crypto?

8/ Third, they make ridiculous false promises, like 'everyone will profit.'

9/ Fourth, almost everyone in the community is there for the sole purpose of getting rich quick.

If a meme token has all four red flags, it’s destined to pump to the moon.

10/ Despite these warnings, the rags to riches stories piqued my curiosity, so I dove into uncharted waters to fully understand meme coins.

My goal was to find the next $SHIB and bet on it before the market becomes aware, then sell before it returns to its true value, zero.

11/ Disclaimer.

Although I’m betting on these I don’t believe they are worth anything.

This is all a ploy to HODL more #Bitcoin.

The reason I’m betting is I believe the market will pump them, and I have the time and temperament to find and pick the next one.

12/ My plan is to bet on several of these memes (also known as ‘shitcoins’), sell them on a double, and let my original position ride.

Although I believe all these coins are worthless and will trend toward zero over time, I think could 100x before that.

13/ My strategy is akin to a poker pro who knows it’s incorrect to call all in preflop with a mediocore holding (AJ/99), but is aware his opponent bluffs too often, and therefore the pro deviates from what the book says to adopt an exploitative strategy.

14/ I don’t recommend this strategy for 99.9% of people.

I believe that simply buying and holding Bitcoin is the easiest and best bet one can make.

15/ I’m fully aware that all my positions could go to zero (as they full well should), and I’m prepared to lose everything.

I can afford to take the risk, and I’m playing with house money.

If it wasn’t already clear, nothing I say is financial advice.

16/ Only morons like me speculate on meme coins with no utility, and again, this does not end well.

I just happen to be crazy enough to believe a dog coin on Solana may be my fastest way to accumulate more Bitcoin.

Time will tell. So, let's dive in.

17/ Before we do, I write a free curated newsletter where my goal is to simplify #bitcoin #crypto #DeFi #NFTs and of course, meme coins so that anyone can understand.

Join 26,000 others and subscribe here: alectorelli.substack.com

18/ Also, if you prefer to dive deep into the video, where I cover 12 meme coins in more detail than I can here, check out the full video.

19/ First up on the list is @wooftoken, a dog coin on Solana.

Market Cap: $100M (0.003% of SHIB)

This token 'makes sense' because #Solana is pumping and it needs a meme coin.

It's practically a 'blue chip' Solana meme, as dumb as that sounds.

20/ Second is it's baby brother @SolanaInu. I love that it has a 20M market cap and they offer staking where you can ape into a random DeFi protocol and earn 1,000,000% APY.

Plus, it's not even listed on CMC or CoinGecko yet.

No other option than to go all-in.

21/ Next is @dingertoken, a meme coin based on @elonmusk cat.

56M market cap, and the only cat coin I could find.

People like cats, and people like Elon, so why not pump this to the moon.

Plus, there's the offset chance that Elon tweets about it?
Automatic 10x.

22/ Finally, all the way down the risk curve in degen land is @BobaDoge, a doge meme on Boba, an 'about to launch' layer 2 solution for #ETH.

We need L2's, this one could moon, & the OG doge coin is a levered bet on the meme coins of Boba.

The best part?

Market Cap is 2M!

23/ Again, I reviewed 12 meme coins in my Ultimate Guide video on Youtube, and go into far more detail than I can here on each of these.

Give it a watch.

24/ What epic meme tokens did I miss?

Leave your favorites in a comment and I'll try to review them.

25/ Realized I missed $HIMA, a Solana cat meme with a small market cap of 7M.

In case Elon's cat doesn't blow up, this one may. People love cats 🐱 and this low market cap coin is still early.

Shoutout @greenmint_ie for the suggestion.