Meme Coins Still Bring Profit, but Not for Everyone

sted an astonishing return of 1,313% on average in the first quarter. And this sector doesn’t even think about stopping its growth, bringing traders millions of dollars in profits.

Meme coins are still generating profits, but not everyone is cashing in. Investors shared their experiences with crypto.news, revealing the varying degrees of success they achieved during the meme coin hype.

During Q1, meme coins collectively posted an impressive average return of 1,313%. This sector shows no signs of slowing down, netting traders millions of dollars in profits. But what exactly are meme coins, and how do they achieve such rapid growth?

What are meme coins?

Meme coins are a type of cryptocurrency that derives its popularity from internet memes and viral marketing on social media platforms. These coins are typically created as a joke without any practical function.

The first and most well-known meme coin is Dogecoin (DOGE), which was launched in 2013 and is based on the popular Shiba Inu dog meme. Initially conceived as a parody of Bitcoin (BTC), DOGE has since gone on to achieve a billion-dollar market capitalization.

The primary distinction between meme coins and traditional cryptocurrencies like Ethereum (ETH) or Bitcoin is the absence of intrinsic value and emission limits. Their price is solely dictated by demand amidst the internet hype, rendering meme coins highly volatile assets.

However, a recent trend has emerged to赋予更大的实用意义for meme coins. For instance, the creators of Shiba Inu (SHIB) and FLOKI are developing their respective metaverses, NFT platforms, and educational ecosystems centered around these assets.

Million-dollar profits — a 2024 trend

The number of meme tokens being issued is increasing at an enviable rate, and traders are swiftly capitalizing on these assets to generate substantial profits. However, such success is typically short-lived and serendipitous. Over the long term, as internet popularity wanes, the majority of meme coins tend to depreciate to near-zero value.

Those who manage to earn millions of dollars on meme tokens likely possess insider information. Otherwise, how would these traders and investors know that the prices of certain meme coins are poised for a rapid ascent? Crypto.news editors spoke to traders who managed to secure these profits on the condition of anonymity.

Frog Investments

Members of the Pepe (PEPE) crypto community rejoiced as the frog token reached a new all-time high. Amidst the celebration, one user revealed that he managed to turn a mere $90 into $1.4 million, thanks to PEPE.

In mid-April 2023, a trader purchased nearly 6.5 trillion PEPE on the Uniswap crypto exchange as a lighthearted venture. Since the initial investment was negligible, the trader refrained from selling the tokens and decided to observe their fate.

This decision proved to be incredibly fortuitous — by May 2024, the 6.5 trillion PEPE had netted the anonymous trader a seven-figure windfall. Nevertheless, a user going by the handle Mina stated that he had no intention of selling his PEPE and now believes that the frog coin will eventually surpass $1 in value.

“Sometimes I feel like selling my PEPE, but I keep it as a reminder not to make hasty decisions. The meme coin market has yet to fully conquer the peaks, and it’s likely that my PEPE will make me a billionaire in a year.”

A strong affinity for dogs and hats

A trader from the meme coin Telegram community shared a remarkable tale of earnings on the Dogwifhat (WIF) coin. However, this case differs from the inspiring stories of traders whose coins multiply 1000-fold in an hour.

The anonymous trader employed a different strategy — HODL. He purchased WIF in December 2023, considering the overall activity on the Solana network and the crypto market’s growth prospects.

After carefully assessing the risks, the trader bought approximately $500 worth of tokens, anticipating further growth. As a result, he earned around $15,000 simply by holding these assets in his balance.

“I've heard stories of traders starting with $100 and making billions of dollars in profits. But as an active member of the crypto community, I find these tales to be the exception rather than the norm. The meme coin market is still very opaque and confusing, so the inspiring stories about traders are likely just insider trading.”

A more conservative approach

Another crypto community member, known as Andilet, urged caution when investing in meme coins and shared his strategy for diversifying assets. He recommended allocating up to 10% of a crypto portfolio to high-risk, volatile coins, including meme coins.

Despite the high risk, allocating a portion of the portfolio to meme coins seemed prudent, as these assets are more likely to generate significant profits.

“It's generally hard to predict how the meme coin market will behave in the long run — because in memes, everything depends a lot on the hype, the level of which is also difficult to predict.”

He purchased Shiba Inu