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GM everyone. This is 2036.
10 days ago, when I wrote that Bitcoin was breaking out, flying missiles were not on my radar (pun intended).
But if you held memes, none of the geopolitical tensions mattered.
Many memes have seen massive gains since then. And virtually all the biggest gainers in the last few days are memecoins.
Popcat is up +42% in the last seven days.
Same for WIF - up almost +50% in the last two weeks. And FWOG - the first frog on Solana - is up +180%.
Thatâs why, unsurprisingly, memecoins are all anyone can talk about right now.
So whatâs going on? Is this the memecoin supercycle?
Well, there are a couple of theoriesâŠ
1/ Muradâs talk on memecoins đŹ
Some prominent traders think this talk (well worth watching, btw) by Twitter influencer Murad kicked off the latest reallocation of capital into memecoins âŠ
In 20 minutes, Murad explains how memecoins are better than other altcoins for reasons most people ignore.
And he seems to have convinced a lot of people.
Hereâs one of the charts he includes in his talkâŠ
2/ Binance just increased leverage options on memes đȘ
Thanks to new rules on Binance, traders can now trade WIF, POPCAT and a few others with 10X leverage.
I donât recommend this, but it finally allows wealthy, sophisticated traders to enter the meme trade with size and leverage.
3/ Increased liquidity in the markets đ
Weâve talked about this many times.
Both the US and China have started stimulating their economies again. This is great for risk assets - and the Chinese, in particular, love to gamble on cat-themed memecoins.
4/ Investors finally realize all coins are memes đ
Some are just better memes.
Unlike VC-backed coins that use complex terminology and claim to be building infrastructure for apps that donât yet exist, memecoins are simple.
They have no upcoming token unlocks, there are no insiders, no VCs, no complicated tech.
Instead, theyâre fun, make you belong to a group of degenerates, and hold the promise of generational wealth.
Theyâre simpler than traditional altcoins because they donât claim to be a governance token or have some further purpose. They have no roadmap, no cash flow, and no single point of failure.
Theyâre just speculation. And they fulfill that role insanely well.
Memecoins are one of the few crypto products, alongside bitcoin, stablecoins, and DeFi, that have found product-market fit: global, permissionless speculation.
All the stories of people getting (very) wealthy this cycle have so far come from memecoins.
This is what happened with NFTs in 2021.
Memecoins are similar to NFTs, but they are easier to trade in large chunks (buying $100K or $1M worth of NFTs is kind of clunky).
Now - itâd be easy to think youâre too late to the memecoin party. But youâd be wrong.
Memecoins are not yet consensus, and many investors still hate them (âthey donât have any utility, theyâre stupid,â etc.).
Thatâs why I think the memecoin craze is just getting started.
And while the market has hardly moved in the last week, memecoins have taken off.
They may outperform virtually everything else this cycle.
Fade them at your peril.
How and when should you take profits?
What does an ideal crypto portfolio look like?
What are the best tools and platforms to use?
How do you manage your psychology along the way?
What are the biggest mistakes everyone makes that you should avoid?
Get these answers (and many more) in Enter, Earn & Exit, my 2024 blueprint for investing in crypto. Get $100 off using code â2024â.
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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.