Star Trader Points Out Four Key Factors Of Successful Meme Coins: Dogecoin, Dogwifhat, Michi Are 'Relatable Memes'

Solana-focused crypto trader Ansem recently addressed accusations of manipulating meme coin prices while offering insights into what makes meme coins successful.

What Happened: Ansem clarified his stance on pump and dumps, emphasizing that while he has made trading mistakes, he has never intentionally misled his followers for personal gain. He cautions against trading coins with a market cap below $100 million due to their susceptibility to significant declines.

He breaks down the four key factors that contribute to successful meme coins:

Reliability: Ansem explains that relatability refers to how easily the meme resonates with individuals unfamiliar with crypto or finance. He cites Dogwifhat WIF/USD as an example of a highly relatable meme, comparing it to a dog wearing a hat, which appeals broadly to audiences.

Virality: He emphasizes the importance of a meme’s potential to go viral, often driven by social media dynamics or endorsements from prominent figures like Elon Musk who talks about Dogecoin DOGE/USD. While for some it can be imminent world events, like Jeo Boden BODEN/USD with the forthcoming presidential election. Ansem stresses the significance of quickly capturing the attention of a large audience.

Distribution: Proper distribution of a coin's supply is essential for sustainable growth. Ansem warns against coins where developers hold significant portions, as this can lead to rapid sell-offs for profit.

Extensibility: This refers to how easily a meme can be adapted to different contexts. Ansem gives the example of Dogwifhat’s slogan "Hat stays on," which allows for creative adaptations, enhancing its appeal.

Also Read: Veteran Trader DonAlt Signals Potential ‘Cycle Top’, Says ‘It’s Over For Memes’

Why It Matters: Addressing accusations of pump and dumps, Ansem explains that external events often bring in new, less committed buyers who may sell off quickly. This scenario contrasts with established communities, such as WIF and Michi MICHI/USD, whose dedicated members resist selling, leading to healthier price consolidations.

Ansem’s detailed breakdown of meme coin success characteristics provides valuable insights for traders. He advocates thorough research and community evaluation to identify the next potential breakout meme coin.

He concludes by emphasizing the importance of strong, engaged communities in sustaining meme coin momentum, stating, "The best memes have great cults."

What’s Next: The influence of meme coins and Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next: Crypto Expert Reveals How To Find ‘High-Risk High Reward’ Meme Coins

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image created using artificial intelligence with Midjourney.