Are early memecoins always profitable?

[Ahli38]

An Arbitrum-based Layer 2 network called Robinhood Chain recently was launched about a month ago. The ecosystem on that network has already begun to see widespread adoption by various projects. Memecoins have also started to appear in large numbers on that network under various names. But not all memecoins currently appear to be particularly profitable given that some are seeing their prices decline. I personally have spotted one memecoin that’s quite interesting to follow, where its price performance has been quite strong so far with gains that remain relatively high. This memecoin emerged early on around the time of the Robinhood Chain mainnet launch. Its name reportedly derives from the original name of the company that founded the project (Source).

I’d like to know, do you think investing in memecoins early on is always profitable? Or do you think history will repeat itself just like with some memecoins on other networks?

[Charles-Tim]

It will be like other chains. Maybe some early meme coins on the Robinhood Chain may first be noticed, but not long it will be followed by different kinds of meme coins. You will see some that will increase significantly before they later dump, while some will begin with dump and dump more. At last, you may not see one that is a store of value among them.

[bitbollo]

mmm in the most of the cases a memecoin get a pump in value since there is a strong community behind.
If this is not the case, you can always expect a "lucky shot" probably a single digit percentage could be able to hit the "jackpot".
Only a few would be able to provide enough time for a "cashout". The use case is almost negligible and all users would just try to find "the new meme coin"...

https://www.publish0x.com/bitbollo-cryptocurrencies-blog/a-depth-analysis-of-bitcointalkorg-speculation-thread-the-ne-xjmjlgd
https://www.publish0x.com/bitbollo-cryptocurrencies-blog/a-depth-analysis-of-bitcointalkorg-speculation-thread-the-ne-xpnnjwq
Here I have collected prediction/analysis of previous speculation. As you can see (even if this was a golden era for ICO - data come from 2017) it was not guaranted a profit. Only 13% of these predictions have been in positive after 3 years.

[Ruttoshi]

The problem isn't investing early on memecoins but the problem is that the investor who bought early wouldn't want to sell when he sees a little pump in price and that's where he gets disappointed if the dev dump the coin.

The best way to invest in memecoins is buy with the amount you can afford to lose and watch when the price increases a little sell it immediately, and forget about it because they're always short term projects.

[Y3shot]

I’d like to know, do you think investing in memecoins early on is always profitable? Or do you think history will repeat itself just like with some memecoins on other networks?

I consider them to be gambling coins because they are very unpredictable. It is very common that at first you see a good increase, which makes people believe it is a good coin to invest in, and after some time it begins to dump.

Memecoins are not what people need to rush into, but to observe for some time, and even if one decides to invest in it, it is important not to have expectations on the coin because anything can happen, and one should buy with the amount they can afford to lose.

[Botnake]

If you are only hoping to catch one pump, then I guess the answer is no.

When people say memecoins are profitable, they make it sound like the whole market is profitable. But in reality only a few coins really make money, while most of them are just built from hype.

Thats why buying memecoins is still a gamble. You need to enter at the right time and also know when to sell, because if you hold too long the profit can disappear very fast.

[Mrbluntzy]

I’d like to know, do you think investing in memecoins early on is always profitable? Or do you think history will repeat itself just like with some memecoins on other networks?

Investing early can be profitable if the investor  bought a memecoin that the team does not quickly abandon once they have collected investors funds. There was this memecoin I bought, I discovered it on coin market cap when it was just launched but the team has not pumped the memecoin till today, the problem was not because I bought it when they have already pumped the token but I invested on the token very early and it turned out that I bought a scam memecoin. Therefore, even if an investor invested early on a memecoin, the possibility to make profit from that memecoin is if it's not owned by scammers. If you invested early in a memecoin that the team also wants early investors to make some profits, then you will be able to get profitable.

[Marykeller]

The problem isn't investing early on memecoins but the problem is that the investor who bought early wouldn't want to sell when he sees a little pump in price and that's where he gets disappointed if the dev dump the coin.

This is greed at its play, as many investors would be thinking of more pump price would continue to happen. Whereas a dump price is around the corner.

Many investors are guilty of that: the opportunity to sell at a high price after they must have bought early into a coin when it was at a low price, only to end up at a loss.

The best way to invest in memecoins is buy with the amount you can afford to lose and watch when the price increases a little sell it immediately, and forget about it because they're always short term projects.

Memecoins and altcoins are mostly short term. They are not to hodl for long, if we want to make gains from them. I don't know why investors fail to hodl them that way, without having a moderate price in mind to sell off.

[Odusko]

Depending on the hypes around the project, only a few memecoins on the Solana network or ethereum ecosystem have managed to recieve early investors interest and get people attention through the hypes around it, but what you should know is that memecoins investment shouldn't be taken along investment meaning no need to waste time holding on to the coin no matter the hypes around it, make sure you don't allow the pump to pass with you holding the memecoins. That is, sell through the pump price season as an early investor

[Slow death]

I’d like to know, do you think investing in memecoins early on is always profitable? Or do you think history will repeat itself just like with some memecoins on other networks?

Of course, history has clearly shown that people who invest first in a given project are more likely to profit. This is because other people who buy later drive up the price of the Meme Coin, and when the Meme Coin is listed on a major exchange, the price rises even further, allowing early investors to profit. Now, what you need to know is: when will you be the first to invest?

Being part of the first group of investors isn't easy, because nowadays projects, when they're announced, already have initial investors, and the owners of Meme Coin themselves work behind the scenes to profit greatly. I consider Meme Coins to be gambling. Therefore, if you invest in them, just make sure you view them as gambling where you have a high probability of losing.

In the case of that Meme Coin from the link you posted, the project was created by a company that already has a strong name in the market. People tend to trust projects created by important figures in the market more. so I'm not surprised by the 1700% increase that this Meme Coin has had.

[jossiel]

I’d like to know, do you think investing in memecoins early on is always profitable?

I am speaking in my experience.

It's not always profitable and more chance of losing.

That's why if you're going to invest into some memecoins even on its early stage, the risk is still high.

Or do you think history will repeat itself just like with some memecoins on other networks?

We don't know about that. But there's also the possibility, we're like walking in the dark with these. I advice to invest only what you can afford to lose.

[Rengga Jati]

An Arbitrum-based Layer 2 network called Robinhood Chain recently was launched about a month ago.

The Robinhood Chain is indeed still relatively new. But, when a platform is new and generating significant hype, the dynamics tend to be different. Often resulting in sharper surges. The same applies to the launch of meme coins on this chain; that sector is expanding. That said, there is certainly no guarantee that this momentum will last or that growth will continue.

I’d like to know, do you think investing in memecoins early on is always profitable? Or do you think history will repeat itself just like with some memecoins on other networks?

The issue here concerns meme coins. Projects that are notoriously difficult to predict. While buying meme coins early can certainly be highly rewarding, the risks are equally massive. After all, no exact way to know surely whether a specific meme coin will skyrocket in the market. The timeframe is usually very short. Especially once the hype kicks in. The dynamics change drastically at that point.

But, it bears repeating. No guarantee that getting in early on meme coins will always yield higher profits. It requires extra effort to analyze them properly. Moreover, timing is crucial. Even a slight delay could mean missing a golden opportunity for high returns. Or worse, suffering a loss instead.

[goldkingcoiner]

I have never heard of any memecoins being profitable for early investors other than for the devs themselves. And that is usually the case with the same coins that get pumped and dumped, which ist the majority of memecoins. So if you want to gamble, there is a large chance to lose everything or earn a little. I would rather invest a tiny bit in 100 memecoins and earn a modest profit than to invest everything into a handful of these so-called memecoins.

[Accardo]

Cashcat did huge numbers at the first few hours of its launch, haven done over $200 million in market cap, and an ATH of 0.022, the market value plummeted sharply by 70% in less than a week and sank to $56 million market cap, because, like every other meme, investors took profits. Traders who bought late and didn't sell are on the loss, though the memecoin is currently surging, the market cap sits at about $90 million, buyers are doing this for the sake of Robinhood chain, Cashcat has emmerged as the face of the network. Aside these development something is fishy, Noxa.fun the launchpad that created Cashcat is no longer active, though it had no effect on the memecoin, but the overnight closure of the launchpad should be a reason for a close investigation on the chain before investing on any memecoin created there.

[el kaka22]

Memecoins are "never" profitable. We have seen a few that made some money for the early investors, but even later on, most memecoins did not make a profit for the early investors as well. So we need to realise that this was never the point; memecoins were not created so that you could make money from them.

Why it exists is because creators get rich; they are not getting rich now because nobody cares about them anymore, but that is why they were created, and I think it is quite important to realize that we should not be considering this as a way to get rich for us; it was for creators only and nothing more. If we keep investing in memecoins, then all we are going to get would be a loss and nothing more. This is why it is a highly suggested situation that if you are going to trade or invest anything, do not make it based on a joke, because if you are doing investment based on a meme, then you are doing something wrong, that is not the purpose of investing at all.

[coin-investor]

I’d like to know, do you think investing in memecoins early on is always profitable?

It is profitable provided that it takes off and many investors support the hype, and you know when you will invest and, more importantly, when you will exit. If you do it late, you will end up a bag holder; that's exactly what happened to me.

Or do you think history will repeat itself just like with some memecoins on other networks?

It's still memes that thrive on hype, and the scheme is pump and dump, so it offers nothing new; they just transfer to a new chain.

[Odusko]

I’d like to know, do you think investing in memecoins early on is always profitable?

It is profitable provided that it takes off and many investors support the hype, and you know when you will invest and, more importantly, when you will exit. If you do it late, you will end up a bag holder; that's exactly what happened to me.

Or do you think history will repeat itself just like with some memecoins on other networks?

It's still memes that thrive on hype, and the scheme is pump and dump, so it offers nothing new; they just transfer to a new chain.

Asides from the hypes and taking off, another thing that make memecoins early investment profitably is when you buy the coins as early stage when the price is very cheap and the coin get listed on exchange at a higher take off price and ut happen to pump, such a coin can make you alot of profits if you act rightly and on time to sell them off along with the hypes. Becoming too expectant can take away your profits because memecoins are not suitable to hold for long period of time.

[shinratensei_]

You're only seeing the good stories, there are tons of rugs happening in RH and I've seen it myself. Cashcat is special case because it's the reason RH's meme coin market is having a good time, the pump of cashcat attracted liquidity but that's it.

Being early in a memecoin means you don't even know yet whether the meme coin you're buying will be a rug and you're going to need to do some research about the bubblemap of the coin to find that out. Those snipers who able to cash out 1000x profit are sniping hundreds of coins before they found the one that gives them massive ROI. It's a gamble and the odd is pretty low.

If you don't believe me, head to RH meme launchpads, to test the water throw a buck to 10 recently launched meme coins, come back 3 days later, I bet your money become $0.

[asriloni]

Buying meme tokens is the same like a buying a mystery box. you don't know whether you lucky enough to get a profitable meme instead of getting rugged in term of minutes.

I take two RB meme tokens as an example.


Family coin meme.


Mumu the bull meme.

Source: https://www.coingecko.com/en/categories/robinhood-chain-meme

Those memes were dumping since they peaked due to the pnd, and i believe from thousands of memes already launched on RB chain are also having the same path like those tokens. There are only one or two memes are still staying at peak, but this also totally depend on how early you are entering in the meme.

There is not profitable meme tokens unless you get lucky enough to enter the correct one that gets hyped.  This is why buying meme is same as buying a mystery box. Being only early is not enough.

[pooya87]

I’d like to know, do you think investing in memecoins early on is always profitable? Or do you think history will repeat itself just like with some memecoins on other networks?

No and there is no guarantee that the shitcoin gets pumped ever, even right after its release.

But generally speaking, at times like this when the big coins are not rising to attract the capital, the market participants look elsewhere to make profit. And the best place to do it is in "smaller" coins. This is the coins with small markets, with very low price and fresh coins because fresh coins have the additional benefit of not-having been pumped ever. This makes them prime targets for pumping.

Remember that bigger shitcoins like ETH are impossible to be se big pumps because they are already over pumped & dumped.

But there is a risk here too, since at the end of the day these are still useless shitcoins and their pump depends completely on the pumping skills of the pumping team behind it. That is pure market manipulation and that is not something you can measure or predict. Therefore it is highly risky.