Written by NEET
Compiled by AididiaoJP, Foresight News
I will share how to achieve financial freedom in this cycle through memes, which is a specific execution strategy rather than an idea. Yes, I am not kidding.
I have been accumulating meme coins on Ethereum for the past one to two years. I buy on dips and have no plans to sell in the short term. Currently meme coins make up 80% of the portfolio.
At the same time, I gradually sold my meme holdings on Solana. Meme liquidity in the Solana ecosystem has become increasingly low. With a few exceptions, meme token returns have been declining since the launch of TRUMP and MELANIA in January.
The meme coin battlefield on Solana will never disappear, and new meme coins will rise and fall every day. But we can find safer and higher-return opportunities on Ethereum.
From a macro perspective, my meme coin strategy is pretty simple:
Stop casting a wide net on illiquid Solana meme coins in pursuit of 100x returns.
Start pursuing 10-20x returns on liquid Ethereum meme coins and invest more money.
Part 1: Why choose Ethereum Memecoin?
The liquidity of the PEPE/ETH trading pair is as high as $49 million. What will happen to the price of PEPE when the price of ETH doubles or triples?
My point is simple: ETH will go up, and meme coins will go up even more.
In the past 1-2 years, we have seen excess returns from meme coins such as PEPE, MOG, and SPX. The price performance of these coins has outperformed ETH and is likely to continue this trend in the future.
If an Ethereum memecoin meets the following conditions, add it to your watch list and keep a close eye on it:
Online for at least one year
More than $500,000 in liquidity locked or destroyed
Contract ownership has been abandoned
The official website and social media are still operating
The holder maintains a certain level of activity on Telegram or Twitter
These currencies will significantly outperform ETH in the coming alt season, and this moment may be closer than you think.
In addition, Ethereum meme coins have a hidden advantage: they are compatible with DeFi. More on this later.
Next comes the most anticipated part.
Part 2: Price Target
Everyone cares about price targets.
No one can accurately predict price movements, but you can make reasonable guesses based on a variety of indicators. Remember: whether you like a currency or agree with its meme culture, almost all meme coins will rise in a bull market.
Let’s start with the leading meme coin:
PEPE
MOG
SHIB
SPX
I define leading meme coins as those that have ever reached a market cap of $1 billion. At the current price, their expected returns are 5-10 times. Holding these coins can let you sleep peacefully, unless something catastrophic happens, otherwise a 90% retracement is almost impossible.
Next are the mainstream meme coins:
APU
BITCOIN (HarryPotterObamaSonic10Inu)
BOBO
JOE
NPC
WOJAK
These currencies have exceeded $100 million in market value, are usually listed on second-tier exchanges, have active communities and loyal holders. It is expected that these mainstream meme coins have 10-20 times of growth potential.
Finally, there is the copycat meme coin:
BUSINESS
KEKEC
LMI
SMURFCAT
These are small-cap meme coins with a market cap of just over $10 million, no exchanges listed, low liquidity and trading volume, but higher volatility. Not all small-cap meme coins will skyrocket, but the ones that perform well may have 20-30x gains.
The portfolio should focus on allocating blue chip meme coins, moderately allocate mid-cap meme coins, and hold a small amount of small-cap meme coins as a speculative bet.
Part 3: Spot Leverage
Don't let anyone tell you that meme coins are worthless.
After buying meme coins, what’s next? Use meme coins for DeFi.
The IMF@intlmemefund protocol allows you to borrow using meme coins as collateral.
Why do I use IMF to mortgage memecoin? I use it to add spot leverage to my positions. Now for every $1 increase in memecoin, I can earn $1.5.
The specific operations are as follows:
Buy $10,000 PEPE
Deposit PEPE into IMF and borrow USDS of 5,000
Exchange USDS for PEPE
Deposit the remaining $5,000 PEPE to lower the loan-to-value ratio (LTV)
Now the amount of PEPE you hold has increased by 1.5 times. You will only face liquidation if the price of PEPE drops 66% from the current level, and the probability of this happening is decreasing every day.
Moderate leverage can bring huge returns. A 1.5x PEPE exposure can let you sleep peacefully. In addition, after completing this transaction, you can also get an IMF reward, which can be said to kill two birds with one stone.
I didn’t realize the potential of IMF at first. But now communities like MOG and JOE are buying more tokens and pushing the price up with the additional buying.
IMF currently supports PEPE, MOG and JOE, and will support more currencies in the future.
What about futures or perpetual contracts trading on Binance, ByBit, and Hyperliquid? I recommend caution. Meme coins on Ethereum are more mature and will take longer to rise. It is a game of patience and it is only a matter of time before they rise.
If you want to swing trade, stick to low leverage, long periods, and never invest more than you can afford to lose.
Part 4: Exit Strategy
The final step is the easiest.
The position has been established. The next step is not to wait, but to wait patiently. The time for Ethereum meme coins will eventually come. The market is cyclical, and the time for funds to rotate back to Ethereum meme coins will come soon.
Regardless, it is crucial to set clear profit targets. Without a plan to sell a certain percentage or amount of your meme coins, your position will be like a roller coaster.
When your currency starts to rise, first repay the IMF loan and reduce the spot leverage. Then use protocols such as @1inch or @CoWSwap to gradually sell and exit in multiple times.
Don't try to sell at the top. You need to sell in batches as the price of the coin rises. The gas fee of the Ethereum mainnet is very low, so you can sell as many times as you need.
After completing these steps, you have successfully caught the bull run and achieved financial freedom through memecoin.
in conclusion
I have to admit and execute this trading strategy.
Meme coins will exist for a long time.
While I am also bullish on other crypto assets (including NFTs and some Solanameme coins), I firmly believe that Ethereum meme coins are like underwater beach balls that will eventually surface.
In a bear market environment, we have seen MOG and JOE rise and rebound from the lows in February. With DeFi protocols such as IMF introducing lending and spot leverage functions, a new round of meme coin season is likely to be coming.
This time, I will not be aggressive in trading new coins, but stick to the old meme coins that have stood the test of time.
