Meme coins – A Tale of Ups and Downs
In the recent meme coin saga, I got into two meme coins on the ZkSync chain for the fun out of it, using a bit of $ that I got from the previous ARB airdrop – Cheems and Dogera. I made a 3X gain on one and was down -50% on the other. Was it fun? HELL YEAH! Pretty addictive. Would I recommend it? Nah, not for the faint of heart, especially not with your hard-earned money. Let me share my experience.
Note: Before you continue reading, you should know that I’m just playing around with the meme coins using money that I can afford to lose. I also allocated just a small portion of my portfolio to play around. This is not financial advice.
Being the true degen that I was, I decided to search for memecoins to play with. Some of ya’all might be wondering why not PEPE or any of the ETH meme coins? I believe that PEPE has reached it’s peak after the listing on Binance… might not be a good time to ape in. As for ETH…have yall seen the gas fees? Its crazyyyyy high. Each transaction can cost like $50 on the Ethereum blockchain. If you are new to crypto, gas fees are normally paid to network validators as form of thanks for their service for every transaction you make, it can get high if there is an increase in trading activity.
That is why I settle for ZKsync Era, figured I can get into the new memecoins while racking up the transaction count in preparation for a potential airdrop. Why not? I decided to do an experiment by buying the two coins at $50 each roughly and see how it turns out. I did my due diligence in terms of basic security checks using Dex screener and Dex tools just to make sure I wasn’t buying into a rug or some kind of scam and you should too!
The first coin that I chose was Dogera, a random memecoin listed just 8 days ago…
And of course, the token dumped 50% overnight. HAHA.
The second meme coin I bought was Cheems, now this one golden, got into it at just the right time and it shoot up the next day. I took out my capital and let the rest run. Feeling euphoric and lucky that this turned out to be a sweet deal, things could have turned out differently.
What you should know
In the end, the memecoin saga was a rollercoaster ride of emotions. While the experience was undoubtedly exciting, memecoins were not suitable for everyone, especially those who couldn’t afford to lose their hard-earned money. The volatility and unpredictability of these coins make them a high-risk investment.
I would caution others against diving headfirst into memecoins without thoroughly understanding the risks involved. It’s essential to conduct proper research, assess the project’s legitimacy, and be prepared for both gains and losses. For me, this adventure served as a reminder to approach investments with a level-headed mindset, focusing on long-term strategies and fundamental analysis rather than chasing short-term gains fueled by hype. If you want to play meme coins, keep it to a small portion of your portfolio.