Fuzebitc.com Invest idea : what to buy in the midst of the “crypto winter”17.06.2022
Senior Analyst Fuzebitc.com recalled the existence of “meme” tokens and explained why they can show growth in the medium term.
Against the background of negative forecasts, a high indicator of “fear” of investors and the tense situation in the crypto market, we propose in the medium-term planning to focus on tokens with a high social resource and a low fundamental component. Ideally suited to this category of assets are “meme” tokens, that is, cryptocurrencies that have arisen on the basis of various Internet memes.
What to buy?
- Dogecoin (DOGE) — 30%;
- Shiba Inu (SHIB) — 25%;
- Floki Inu (FLOKI) — 15%;
- Dogelon Mars (ELON) — 15%;
- Baby Doge Coin (BABYDOGE) — 10%;
- Saitama V2 (SAITAMA) — 5%.
The success of most “meme” projects lies in the fact that they parasitize Elon Musk’s brand and his social capital. The billionaire’s tweets have repeatedly provoked bursts of traders’ interest in certain cryptocurrencies, and most often these were “meme” tokens. For example, Musk has repeatedly explicitly stated his support for Dogecoin, and his puppy of the Shiba Inu breed is called Floki, which is successfully speculated by enterprising developers.
A high dependence on the news background and the statements of an individual opinion leader may be perceived negatively, but despite this, market participants continue to demonstrate high loyalty to these tokens, which allows them to demonstrate growth even in the conditions of “crypto-winter”. And the lack of a fundamental component behind these projects against the background of what is happening with the market turned out to be even a plus.
Of the disadvantages of such a portfolio, only its unpredictability and difficult predictability, the growth of “meme” tokens occurs suddenly and unreasonably. Such assets are unlikely to be suitable for long-term investments, but they may be interesting during periods of market uncertainty, as well as against the background of possible statements by Musk, which have become more frequent in recent weeks.
We should also not forget about the launch of a satellite to the Moon funded by DOGE, the exact date of which can be announced at any time, which is likely to cause a powerful surge in investment activity around “crypto memes”.
Another project from the portfolio is Saitama. It is not directly related to the Mask brand, but recently the number of mentions of this token in the information field has increased, which can have a positive effect if the masses of investors who adhere to the “YOLO” principle (we live once) pay attention to it.
It is almost impossible to make accurate predictions on the quotes of “meme” tokens. Their cost directly depends on the HYPE created by a certain group of investors. Therefore, it is difficult to predict their growth or fall with a high degree of probability, all forecasts are based mainly on the personal experience of analysts and empirical data obtained in past investment periods.
“Meme tokens” are growing rapidly because retail investors buy them en masse, which increases their price due to the banal technical mechanisms of the market. But as soon as these investors sell their tokens and move on to other assets, the price drops noticeably. In fact, often “memes” are accompanied by “Pump and Dump” schemes, and less often bursts of activity give a long-term result. This should be taken into account when organizing a portfolio, that is, constantly monitor the relevance of its value, so as not to miss a good moment to exit.