This 1 Memecoin Could Eclipse Dogecoin and Shiba Inu. Should You Buy It?

Dogwifat has many signs of being a good meme coin investment.

Dearest meme coins of yesteryear, dogecoin (Doge 2.31%) and Shiba Inu, (SHIB 2.54%), could rise again in the context of a crypto bull market. However, there is only one new candidate, Solana blockchain, dogwifat (WIF 18.71%)could now take the crown from both and become the king of meme coins.

Of course, that doesn’t necessarily mean it’s a smart investment for everyone. Still, there’s reason to believe the coin, “Wif,” as boosters affectionately call it, has the momentum to skyrocket beyond the value of its predecessor. Here’s why:

For Wif

As you might have guessed, Wif’s iconic mascot is a somewhat grumpy-looking Shiba Inu wearing a pink knit cap.

Assessing volatile factors such as meme aesthetics is important to identifying the best meme coin investments. Wif is a good guide to get a general idea of ​​what to look for. Dogs are cute and harmless. If the puppy’s appearance doesn’t strike a chord, the coin won’t have enough visual appeal to entice more people to invest.

Nevertheless, even though this coin was only launched at the end of 2023, it already has a market capitalization of around $2.5 billion, much larger than most companies traded on the stock market. may surprise investors. It is traded on many of the major centralized crypto exchanges (CEX) as well as all of the major decentralized exchanges (DEX).

coinbase will soon offer perpetual futures trading, which could presage an explosion of other financial derivatives based on the coin, which are already listed. robinhood market. Therefore, all kinds of potential investors can easily purchase the coins.

Sentiment about Wif is running high not only among popular crypto influencers but also on social media. Some of these influencers, working with Coin’s community, raised approximately $700,000 to fund his marketing campaign to showcase Wif in the Las Vegas sphere.

Contrary to investor assumptions, such organized advertising efforts are not uncommon in the memecoin investor community, although most campaigns consist of social media posts, charity work, and the occasional sale of coin-branded merchandise. They tend to be limited to small-scale activities such as Easily raising funds to drive mass marketing means more upside is likely to come, after which coin holders can voluntarily contribute to other growth initiatives. You can get more cash than you could potentially.

On that note, the energetic and large Wif community is another reason to consider purchasing the coin.

Since the project was abandoned relatively early on by the developer, the only thing keeping it alive and increasing its value is the investor community. And through continuous creation and posting of new meme material, he has so far helped his dedicated army of over 128,000 Wif holders rise to the challenge. And with so many of the coin’s whales (the largest holders) actively involved in spearheading everyone else’s efforts, the community is amazing even by (admittedly very low) memecoin standards. It’s very capable.

Having a large base of willing and active coin holders is a huge advantage as it means there are always a lot of people excited about the spread of the meme. A steady trickle of free marketing from the owner means the project is likely to continue to have a life of its own, becoming even more valuable over time.

This could be ripe for long-term holding, but not without high risks

There is currently a lot of talk in the cryptocurrency world about how Wif will one day become much bigger than Dogecoin or Shiba Inu Coin. That’s entirely possible, and in my view, likely to happen eventually as a result of the factors outlined above. The coin is up nearly 1,600% this year, and investor expectations are higher than ever.

However, that doesn’t necessarily mean it’s the right investment for you.

Wif is a meme coin. That is, he is one of the most volatile and risky types of cryptocurrency investments. Cryptocurrencies are also generally highly volatile and risky compared to other investments. In other words, Wif is towards the end of the risk curve.

A sharp drawdown that could reach 80% or more is guaranteed at some point in the future of this coin. Like Dogecoin, it is possible to recover in days or years after such a decline, but recovery is not guaranteed.

Don’t bet your farm on this coin. There are many macroeconomic risks that can cause the economy to sink or become undesirable. There’s also the risk that people will get bored and sell out, or that drama within the community or among influential members could derail the entire project.

If your portfolio is not already diversified, do so before investing in Wif. If you are not willing to hold your coins for the long term, don’t invest at all as you will likely fall victim to selling during temporary volatility.

But if you can tolerate volatility and like to post cute dog pictures on the internet once in a while, Wif could be a great purchase. Wif is arguably one of the most powerful meme coins in cryptocurrencies right now.

Related Article

0 Comments

Leave a Comment