Andrew Kang, a crypto trader and co-founder of Mechanism Capital, a venture capital firm specializing in cryptocurrencies, said memecoins are a pure, up-front speculative vehicle, which is why they are so popular with other digital investors in this bullish cycle. We believe that our assets will outperform our assets.
In a tweet on Sunday, Kang said that while Ether (ETH) could rise 50% from its current price in the crypto market, the value of meme coins would rise 5-100 times. This surge will introduce a generation of new money meme coin elites like the whales and old guard created through Bitcoin (BTC), ETH, and Solana (SOL).
Meme coins that outperform all others
Kang likened the mem ecoin ecosystem to a skill-based global lottery platform where players choose the brands they buy tickets from. However, the payouts and odds are different, so skill is required.
Players who win jackpots do so through skill and ability, not pure luck. I believe this will help everyone find the next winner.
“And the more people who can buy the same ticket, the more likely they and their friends will win. It feels great to win together. It’s a game,” Kang said.
Revealing that the traditional global lottery industry generated approximately $300 billion in revenue in 2020, with half of the United States participating, the trader said he would value the meme coin space if a similar size capital injection were made. I assumed the amount.
“This cycle will see memecoin mental retardation reach a serious level,” he said.
real pump
The Mechanism Capital co-founder further explained that the last bull run was a test pump for memecoins, similar to Bitcoin's test run from $100 to $1,000. However, this bullish cycle sees the token rise in earnest as the last cycle proved the token's product market fit, expanded global acceptance, and showed how the token has changed lives. It will be.
According to Kang, meme coins will significantly outperform other crypto assets. That’s because the crypto masses don’t care about flashy new technologies that offer throughput benefits, and they don’t fall for the 10,000th decentralized finance (DeFi) farm targeted by retail traders. They considered it “a self-referential Ponzi, like a House in the Sand.”
Meanwhile, Kang believes that overweight DeFi and layer 1 tokens are at risk of significantly underperforming in this bull cycle.
