Meme coins are in the spotlight amid the resurgence of meme stock investors, which recently resulted in GameStop (NYSE:GME) surging by more than 1.5x in the space of a month. Although meme coins rarely have the necessary fundamentals to justify their value, other influencing factors make their price trajectories predictable. For example, technical indicators and beta analysis can be considered.
With that said, meme coin investing remains risky. Therefore, I suggest you weigh up your ability and willingness to take on risks before investing in them. Moreover, meme coin has yet to consolidate itself as a sub-asset class, meaning perpetual gains are unlikely. Instead, meme coin investing is opportunistic.
If you’re OK with the risks involved, then here are three meme coins worth considering.
SafeMoon V2 (SFM-USD)
SafeMoon V2 (SFM-USD) is a decentralized token built on the Binance (BNB-USD) Smart Chain network. Its novelty lies in its penalization feature, which rewards long-term holders while penalizing sellers, providing asymmetrical return possibilities.
To expand on the abovementioned, the coin’s ecosystem involves a 10% selling fee, half of which is redistributed to existing holders. SafeMoon uses the other half to boost its liquidity.
Despite its asymmetrical features, SafeMoon has lost more than 70% of its value in the past year. I believe its losses stem from fading community interest and its endless supply of 1 trillion tokens. However, a rebound seems likely as the meme crowd resurgence paired with high-beta stock activity aligns SafeMoon’s prospects.
SafeMoon is a risky asset, but one worth keeping tabs on.
Akita Inu (AKITA-USD)
Akita Inu (AKITA-USD) surged by more than 20% day-over-day at the time this article was authored. I wanted to highlight this fact as it conveys the possibility of a resurgence in Akita Inu’s community-driven investor base. The meme coin is still down by more than 70% year-over-year; however, I think it has turned a corner due to the market’s risk-on activity.
For those unaware, Akita Inu started as a meme but branched to the Avalanche (AVAX-USD) blockchain, allowing faster and more comprehensive transactions. Moreover, the token is locked into Uniswap V2 (UNI7083-USD), ensuring adequate liquidity and added stability.
One downside of Akita Inu is that it operates in a congested space, where its primary goal is to function as a means of transaction. Additionally, Akita Inu’s 100,000 billion supply cap is outlying, meaning price preservation is unlikely. Nevertheless, it is a community-driven coin supported by interim progress.
Dogelon Mars (ELON-USD)
As embedded in its name, Dogelon Mars (ELON-USD) is an Elon Musk-linked coin whose community initially joked that the coin would be used on Mars if Musk made it habitable. I emphasize the coin’s community as that’s pretty much all there is to go by. The last I checked, Dogelon has no white paper; additionally, limited information about its founder/s exists. Therefore, the grapevine is all investors have to go by.
The good thing about Dogelon Mars is that it is fully distributed to holders, meaning the founder/s didn’t hoard coins to profit out of secondary holders. As such, one can argue in favor of a green flag from a community-based standpoint.
Dogelon Mars is an ERC-20 token built on the Ethereum (ETH-USD) blockchain. It is available on Uniswap and is tradable. Sure, Dogelon Mars’ future is uncertain. However, I believe Musk’s effervescent and growing presence adds substance to the trajectory of this memecoin.
As this article continuously highlights, meme coins are risky investments, and Dogelon Mars is no different. Nonetheless, I’m bullish about Dogelon Mars’ prospects in this risk-on market environment.
On Low-Capitalization and Low-Volume Cryptocurrencies: InvestorPlace does not regularly publish commentary about cryptocurrencies that have a market capitalization less than $100 million or trade with volume less than $100,000 each day. That’s because these “penny cryptos” are frequently the playground for scam artists and market manipulators. When we do publish commentary on a low-volume crypto that may be affected by our commentary, we ask that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: How to Avoid Popular Cryptocurrency Scams
On the date of publication, Steve Booyens did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
