In an AMA, blockchain strategist Anndy Lian discussed memecoins, the hottest cryptocurrency trend, the future of NFTs, their influence on the market, and the importance of community in memecoins, a topic with over 175,000 followers on X.
Anndy, hosted by Binance Community Associate Diana, answered audience questions during a two-hour video AMA session.
Are memecoins actually useful?
Anndy confirmed that memecoins can be useful in the real world, but not currently. They often start as hype and can develop into more useful initiatives, like Dogecoin, which gained popularity for micropayments and tipping.
He also noted that memecoins are initially about community, with technology coming later. Early-stage memecoins like Dogecoin were initially jokes but gained popularity.
Are memecoins too dangerous for novels?
Anndy acknowledged the volatility of the cryptocurrency market, particularly memecoins, and offered advice on memecoin investing. He stressed that every cryptocurrency is dangerous, not just memecoins. He also advised investors to determine their type of investor, whether they are accredited or retail.
Retail investors often underestimate the risks associated with derivatives, leading to financial loss. It’s crucial to understand the risks before investing, diversify assets, and avoid investing solely on hype. Tools like Bubble Maps can help evaluate wallet activity and project validity, ensuring investors are aware of potential risks.
According to a new analysis by Binance Research, memecoins have an extremely poor survival rate. The analysis claims that 97% of memecoins that were introduced in the last 12 months have suffered a decline in trade volume to almost nothing, effectively rendering them inactive.
Community’s Contribution to Memecoin’s Success
According to Anndy, “community is everything when it comes to memecoins.” He pointed out that a devoted and engaged community is essential to these coins’ survival and expansion, even though the technology supporting them may develop later.
He gave the examples of Dogecoin and Shiba Inu, which, in spite of early doubts about their technological quality, have prospered because of their devoted communities.
The Development of NFTs
Anndy, author of NFT From Zero to Hero, believes NFTs are useful tools for communication and interaction in cryptocurrency. However, he doesn’t consider them utility. He believes NFTs will return later, with memecoins likely to promote them, and memecoins will likely be the first to do so.
The speaker cautioned against repeating the mistakes of the previous NFT boom, which often failed due to maintenance and other issues, stating that he does not want to observe the same results as the previous NFT boom.
Things to Think About Before Purchasing Memecoins
Anndy advises investors to adopt a methodical and careful approach to the memecoin market, using free tools like Bubble Maps. He advises against blind trust, as leaders may inform investors about theft or compromised wallets. Trust should be based on actual chart volume, not belief, as it is crucial to avoid false information.
Memecoins and Exchanges
Anndy suggests that exchanges should adopt a customized strategy for listing memecoins, as they require unique requirements and cannot be evaluated using the same standards as Layer 1 blockchains.
The speaker suggests that meme projects should focus on community interaction rather than exaggerated follower counts. He encourages exchangers to thoroughly examine the performance of specific projects and encourages active participation in discussions. He advises avoiding waiting for attention and establishing connections to increase visibility.
Collaborations for Memecoins
Anndy emphasized the importance of teamwork in memecoin initiatives, suggesting partnerships with NFT platforms, Layer 1 blockchains, and tools like Copex to improve ecosystems and earn rewards. He advised communities to increase income and invite them to trade and obtain local tokens on sites like Copex.
Anndy discussed the future of the cryptocurrency industry, predicting a significant trend in AI-related crypto projects, particularly in finance. He expressed optimism about the convergence of AI and DeFi and suggested selling native tokens and using the proceeds as marketing funds, benefiting everyone involved.
The speaker anticipates the emergence of one or two new layer narratives in this cycle, possibly related to memes, and hopes for a fresh story to emerge, causing a stir and causing everyone to go crazy, despite the Aptos-like content already present.
The Future of Memecoins
Anndy predicts key memecoins will emerge and dominate the market within the next one to two years. He encourages older meme initiatives to maintain authenticity and consider the project for a longer period before moving on to another. He believes that people will still love a project if they stick with it, even if they cannot earn money.
The Bottom Line
Memecoins, initially a joke, require dedicated communities and a clear goal for success. Approaching the memecoin mania with care, curiosity, and humor is crucial, as gaining money is a potential goal.
