Ansem analyzes the game behind Meme: development team, snipers and whales

Author: Ansem, crypto KOL

Compiler: Felix, PANews

There has been a discussion about Memecoin, “Conspiracy Team” and whales It’s time, so I wanted to give you some background information.

There are three elements to an altcoin issued directly on a DEX without venture capital support:

• Development Team
• "Sniper"
• Whale (TBD)

The degree of intertwining and duplication of these three varies from token to token, but a good combination of the three is needed to maintain the performance of the token in the long term. healthy.

Development Team

Each development team has a different degree of decentralization and organization. On pump.fun, the development team really only consists of one person, plus a photo and a title. And teams like BONK are very organized and have some of the smartest active traders on Solana. Both types of teams can do well, but a project's long-term success relies on two other factors ("snipers" and whales).

The advantage of an organized development team is that they usually have a budget set aside for marketing and future development, so these tokens are more "practical" than memes from pump.fun. bonkbot is a good example, other fully decentralized memes don’t have such products because they don’t have the financial backing. Another example is MEW, which is able to airdrop large amounts of supply to all BONK and WIF holders. These teams also generally have easy access to market makers and get listed on exchanges easily.

On the other hand, fully decentralized teams usually start with a low market capitalization because there is no financial support from all parties. These teams often do a great job of forming a cult community early on because the costs for early entrants are extremely low and the supply of all tokens is widely distributed. The best examples are WIF and MICHI, which have very active communities and had very low market capitalization at the time of release. The risk with these tokens is that, generally speaking, they are more likely to fail early on because all the "snipers" want to exit as soon as possible and there are not any whale players or teams interested in the long-term development of the project.

"Sniper"

For "snipers", they usually don't care what the project is, they just want to be the first one to buy if there is enough flow Sex can be withdrawn and they will withdraw immediately. Many projects without an organized team have failed because of this. If they snipe a large number of tokens at the time of release, they will be sold and the currency price will be smashed.

The ETHWIF derivative launched a few months ago is a good example, with many wallets buying the token immediately after its release and selling it hours later for a six-figure profit or loss.

The market value of 90% of the projects issued on DEX will not exceed US$5 million. The reason is that most development teams are anonymous and very good at making quick profits. This is also why the CTO (community takeover) narrative is so popular, as developers often sell off on the fly.

Whales

Every project with a market capitalization from zero to billions of dollars will at some point need whales to push the price up. What typically happens with meme coins is that a community forms early on, and then once the meme succeeds in terms of attention and virality, the market cap exceeds $100 million. And once the market cap "stands" or exceeds $100 million, larger whales will enter because there is enough liquidity to establish large positions. Additionally, players who own these Meme coins early must be Diamond Holders and cannot sell them once they become whales by holding them at such an early cost. These enthusiastic holders in the community are vital to the project and everything else.

Conclusion

Each token has a team with varying degrees of organization; each token has the participation of “snipers” + whales. For projects worth billions or more, a clever combination of these different elements is necessary, regardless of whether the parties involved are the same.

Related reading: Coinlist “hand-teared” VC coins: The premium of listed FDV is more than 13 times higher than that of private equity, and users are certainly unwilling to accept the offer

The above is the detailed content of Ansem analyzes the game behind Meme: development team, snipers and whales. For more information, please follow other related articles on the PHP Chinese website!