Are early memecoins always profitable?

[Kavelj22]

The memecoin must first gain traction and publicity. It's very difficult to do so. But if you get it, then the later-investors will pay-off the early investors.

As long as new investors pay the profit for old investors, the project might look resistant. But this is not an indicator of success. The same pattern can be observed in ponzi schemes when new comers pay for old ones and so on, until everybody come and ask for his money the project will immediately collapse. With longstanding memecoin, the idea is clear; there is no real product behind the coun which means it is already a failure. But just still used as a trading instrument.

[Doll2233]

Most memecoins are not profitable, because they make fake profiles, the coin supply is high, and they try to create hype so that some people buy the coin. When they launch their coin and it is full of hype, then team members sell all their coins and get out of the platform. Sometimes they alert people that the coins are highly volatile, your money is at risk, and it is not refundable. Slowly the coin is going to be delisted. New people lose their money. So be alert about memecoins.

Memecoins always work like gambling with a rare chance of giving a return on investment because they have no use case, and devs work for their own interest; as they have something, they always dump them. Hype always works for them. Recently a few memecoins have given big losses to people just because of this; now they are avoiding them and do not have enough interest, but still many of those who always want to be rich quickly want to invest and take advantage of them.
 There has never been any strategy for holding or buying; sometimes it works as people make early purchases and then wait for the right time to sell. It works, but not for days; it's always a matter of minutes or hours. This can give you a good return, but in case of failure, things can go against investors.

[o48o]

As long as new investors pay the profit for old investors, the project might look resistant. But this is not an indicator of success. The same pattern can be observed in ponzi schemes when new comers pay for old ones and so on, until everybody come and ask for his money the project will immediately collapse. With longstanding memecoin, the idea is clear; there is no real product behind the coun which means it is already a failure. But just still used as a trading instrument.

What's the "real" product that rest of the altcoins have other then this? Because this is how every single coin and token out there is grown in value. Apart from maybe few of them where tokenomics differ because some centralized entity buys some of it back and burns it.

I hear a lot of about "real" use cases, but so far all that i have seen is tokens being traded against money and other tokens. Every real use case or real world use case have been just meta use cases inside the crypto economy, like smart contracts etc.

[Odusko]

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?

Early memecoins buyers can only be at an advantage if they have bought the coins at the lowest price range, and their are lucky for the .memecoin to pump when it get launched on exchanges, this is where the whole scenario change to wether they can actually make profit or not based in the current price of the coin on exchanges, as we know that memecoins can highly be volatile and risky to that effect investors must make sure to apply the most speculative tendency and take actions when the market is still in demand value or pumped.

[JimaGod]

The memecoin must first gain traction and publicity. It's very difficult to do so. But if you get it, then the later-investors will pay-off the early investors.

when memecoins gains tractions, it means those set of investors that invested early in the project stand a huge chance of making gigantic projects from it. Investors always make their research and go for projects that are definitely pumping and consider as rare gems in the market. None of these investors will lay or sacrifice their time to examine projects that are stagnant or consider as failure in the market.

There's also something to consider in the market, investors will know when it's no longer safe to invest in memecoins and also know essentially when it's safe to invest. Those investors that enter early when memecoins catches traction are the lucky ones and those that didn't enter, they're probably at high risks of losses.

[Localhostspeed]

Early memecoins buyers can only be at an advantage if they have bought the coins at the lowest price range, and their are lucky for the .memecoin to pump when it get launched on exchanges, this is where the whole scenario change to wether they can actually make profit or not based in the current price of the coin on exchanges, as we know that memecoins can highly be volatile and risky to that effect investors must make sure to apply the most speculative tendency and take actions when the market is still in demand value or pumped.

Or maybe an insider. There was a time CT went viral when somebody bought $15 worth of a meme coin and was later sitting at thousands to almost million at that time but after investigating, it was found that the person is definitely an insider wallet that bought and kept it their purposely of it to go viral so they can use it to make their meme coins go more viral, there is always a dot with meme coins that is why I don't find them interesting with their pump.

Most meme coins that are successfully up today didn't make it possible without the exchange support. If you go through some of the top meme coins on the coin market cap, there is a huge circulating supply that is sitting on exchanges address and to make it interesting, they have some large bank sitting in their cold wallet to show how interesting they want to those coins to do well so they can sell too and make profits from them and when they are done, they delist them.

[Ishicryptic]

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.

We have to understand that memecoins have built a reputation in the crypto market that is not palatable for many of us and what I can say is that anytime that you choose to enter the market and buy either you're entering early or waiting till it to dump before you buy in hope of it to skyrocket and you will sell you should know that you're gambling your funds. If you don't know how long the dev team would wait for investors to pump their money before their exit scam then you should buy with amount that you are comfortable to lose because there is no guarantee that you will make profit before the project will die no matter the network that it is launched. Also never see memecoins as a long term investment, they are similar to gambling, you should time when to sell as soon as possible and hopefully make some profit before it dumps without any hope of recovery.

[Junii]

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 don't think so mate. I believe investing in meme coins early gives a person best risk to reward ratio but with a lot of risks the first risk is the high volatility because when the volatility is high the prices of the coin fluctuates a lot which forces me to break my rules which i follow during trades. Some people make a lot of profits from it but they are few and practically this is not trading this was gambling. I focus on use case and volume also liquidity and market cap and also price action rather then invest my money just because it launched now. What i am trying to say is being early maybe gives someone advantage but it's not guarantee profits.

[Kavelj22]

As long as new investors pay the profit for old investors, the project might look resistant. But this is not an indicator of success. The same pattern can be observed in ponzi schemes when new comers pay for old ones and so on, until everybody come and ask for his money the project will immediately collapse. With longstanding memecoin, the idea is clear; there is no real product behind the coun which means it is already a failure. But just still used as a trading instrument.

What's the "real" product that rest of the altcoins have other then this? Because this is how every single coin and token out there is grown in value. Apart from maybe few of them where tokenomics differ because some centralized entity buys some of it back and burns it.

I hear a lot of about "real" use cases, but so far all that i have seen is tokens being traded against money and other tokens. Every real use case or real world use case have been just meta use cases inside the crypto economy, like smart contracts etc.

Yes and that's the point. This is how we call the majority of cryptocurrency projects "shitcoins" because they have no utility at all. Being a tradable asset doesn't mean it really has a derivated value from only trading. See some good examples and compare them with 99% of crypto projects in the market and you will conclude the evaluation yourself. Eth is the native coin for ethereum which is designed to create smart contracts and xmr is the coin for monero is a privacy currency, and few others with real use cases (bitcoin at top of them as a payment system made for electronic transactions). Could you tell me what to do with more than 20K in the actual market?

Being called memecoin doesn't save the project from being described as Shit.