Meme coins are the most recent hype in the crypto ecosystem. Since these projects do not necessitate any real product to attract investors, the creators of the coins try to push the limits of their imagination to provoke a sense of hype and hopium in the crypto traders / investors who are eager to spend some money for both fun and profits if possible.
As the coins are not fundamentally strong, both issuers and holders know that when the hype is over for a certain coin, the sand castle is going to collapse very hard. Thus, they are mostly great for in - day traders or very short term traders. Even though we have always criticized the meme coins harshly as they drain the liquidity in the market, their benefits should never be ignored, too. First of all, meme coins are great sources to attract newbies to crypto again with lots of 0s in the price and dream of $100 to $1M for naive traders.
Aside from being a vehicle to attract newbies, they are also good sources to increase the engagement within an ecosystem. For instance, COQ in AVAX, GUI in APTOS or FUD in SUI are some example of meme coins that made many investors come back to buy $10 - $50 of them with the dream of making easy money in a distinctive chain rather than Solana or Ethereum mainnet.
The Latest Contribution of Meme Coins
The final favor that meme coins did for the ecosystem is most probably the concept of " fair distribution " which rewards the capital, risk and passion better than the others. In the current system, those who want to buy a token from the launchpads first register then stake some coins (such as Seedify, DAO Maker or Chain GPT) to get an allocation. When the launch day comes, there is always a 2 - hour window to send some coins in exchange for the pre - sale token.
However, the new form of distribution is what people showed interest rather than what had been working perfectly fine. Now, the window is open at least 24 hours and there is no hard cap. Besides, the extensive amount of coin is sent back to your wallet since they are not used to buy the token.
The " send me SOL / ETH, I'll create a token and provide liquidity " trend in meme coins has brought somehing more appreciated system of token distribution. Being one of the most popular launchpads in crypto, DAO Maker listened to the voice of community and adopted the new approach.
Guess what happened in the price of DAO as they also added the criteria that a small portion of excessive funds will be used to buy DAO:
People do not worry about indirectly / unintentionally buying launchpad tokens because they know that the earnings from the pre sale will easily compensate for the possible loss from the price volatility in the token.
Depending on the market sentiment in crypto, the meme coins and the launchpad tokens may have a highly volatile price levels. However, once the investors enjoy and demand such type of initial distribution of coins, then the service providers will eventually provide the necessary conditions to meet the demand.
I believe smart contracts will be developed or advanced to make calculations, allocation, distributions, and re - payment processes automatically for fair distribution. The first platform that can integrate a way to add value to its own token, similar to what DAO Maker did, will win the race if the tokens get high valuations.
What do you think about the method of fair token distribution?
Share your thoughts below ??
