Trench Trading: Market Leader vs Beta Plays
With so many participants drawn to the memecoin trenches in order to hit “make it” style trades of 100x or more, the difference between trading and gambling can become indecipherable at times. Often, when a significant trade occurs in the memecoin markets, it sparks a “meta” where others will rush to create similar memecoins or tokens in order to take advantage of the hype and liquidity.
GOAT and its AI meta are a clear example of this. After GOAT eclipsed $100m, beta and derivative plays began popping up out of nowhere, and due to the excess in liquidity and froth in the market, many quickly ran to significant market capitalizations as traders rushed to hit “the next GOAT.” Tokens such as FLAVIA were created, ran as high as an $80 million market capitalization, and are now worth less than $5 million, leaving top buyers completely wiped out.
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