A Social and Financial Study of Memecoins

Every market cycle comes with memecoins. If you’re not familiar with the concept, think about the craze of r/wallstreetbets driving the rally of AMC in 2021 . A bunch of people rally around some meme and bid the price of some asset up for a short while (anywhere from one day to a couple months). It’s become a popular go to market strategy in crypto for everything from the blockchain layer to the app layer - as you drive up not just prices but attention around an ecosystem. Some like Avalanche go as far as creating an actual official fund for memecoins .

The line between memecoin and any other token can sometimes be blurred, but the general assumption here is that there is nothing backing the token besides the meme. For example, DOGE as a token only really has the shiba inu doge picture/idea backing it. Unlike a token like ETH that’s secured by the ethereum blockchain, UNI which has the full Uniswap protocol behind it, or a token like MKR that has a full collateralized stablecoin service behind it.

Farcaster memecoins (like DEGEN) are the newest flavor, with the primary benefit being that the social is openly accessible. So with that, I wanted to test the waters with some basic analysis combining social and financial data.

I ended up with this 　　Disclaimer: Includes third-party opinions. No financial advice. See Risk Warning.