It’s safe to say that Elon Musk facilitated two very interesting trends; electric cars and meme coins. To the moon! But before that, how much have you earned by simply holding ‘baby’ tokens? Personally, I’ve earned a little…while it lasted. Only very few ‘blue chip’ projects are yet to get a ‘baby’ token which yield their holders some dividends in parent tokens for holding the spinoff tokens.
The cryptospace offers a free market opportunity where concepts sell according to market demands. Regardless of intrinsic values, a project’s valuation could steam from numerous factors; ‘luck’ included. DogeCoin’s transition from a ‘joke’ fork of the bitcoin blockchain to a top ten token in a Two-trillion-dollar sector with tons of other relatively ‘more useful’ projects, goes a long way to portray the randomness of the cryptospace. Well, that’s not the first time this space has looked ridiculous; and not the last time either. If you bought some Safemoon and sold it off at its All-time high, then you’d probably be in a realistic moon currently, same if you invested in a number of meme coins.
Meme coins hold one thing in essence, ‘communalism’. Interesting, to be fair; group marketing creates an enormous hype and could drive a huge buy pressure on the concerned project. Meme and moon coins utilize this idea a lot and make tangible price and community success thanks to a correct use of this strategy.
Hype marketing has played out well for a good number of cryptocurrency projects. Well planned shills by a group of people could create thrills and lure potential investors into investing in a project despite having no clear information about the project. These projects sometimes involve prominent cryptocurrency influencers and mainstream celebrities to create these shills. If done well, hype marketing could override utility and push a project to tangible price levels regardless of the proper utility it presents. This growth despite being organic, is actually built on ‘unverified beliefs’ and bloated utility.
Memes are cool, but are they worth over 40 billion dollars? Well, arguably. The doge army would present reasons why they think doge coin should actually overthrow bitcoin at the apex, lol. Regardless of how convincing these reasons may be, meme coins owe a majority of their success to well planned hype marketing…and Elon Musk.
Alright; you might not be a fan of jokes and memes, and communalism either, but passive income is an idea everybody fancies; well, most people. If that’s the case, then you’d fancy some of the ‘baby’ coins being filtered into the cryptospace. Baby tokens rewards holders by selling contract taxes to buy parent tokens and distribute these tokens to holders according to the proportion of tokens they hold. Dividend tokens are usually allocated in a 1:1 ratio and enable automated distribution of the concerned parent token. These protocols are all embedded in the smart contract. Tweaks and ‘hacks’ are possible anyways. Well, I’d say ‘technological exploitations’…lol.
Actually, it doesn’t matter how the rest of the cryptospace feel about these tokens, they skyrocket at launch. Only a few of them manage to maintain this speed for a while though, most others falter as the hype falls. Nevertheless, they make a bold statement about marketing in cryptocurrency and the world outside it.
A true businessman knows the value of marketing; however, same cannot always be said about a nerd who prefers to push code bits to github and deliver clever solutions. Disproportionality between marketing and technology has seen mediocre projects with good marketing climb the stairs in terms of market capitalization while plausible projects languish at the bottom and most times, die off.
You probably have your reservations about ‘marketing coins’ and hype marketing as a concept; but there is no denial about the fact that they shine light on a subject many projects ignore – marketing. Successful cryptocurrency projects are built by properly marketing good utility(ies). When done so well, one might offset the effect of the other. Extremely well-developed utility, successful hype marketing? A project might survive by having just one of these. The perfect strategy is a combination of the two, many projects with solid utility and tokenomics miss out on the latter.
A lesson to learn? I’m not sure if these other projects are willing to learn from meme and ‘baby’ tokens.