Meme Coin Investment Strategy: New Opportunities on Ethereum

In the past year or two, I have been accumulating meme coins on Ethereum, buying the dips and holding long-term. Currently, meme coins account for 80% of my portfolio. At the same time, I have gradually reduced my meme coin positions on Solana due to its declining liquidity.

Although the meme coin market on Solana still exists, Ethereum offers safer and higher return opportunities. My strategy is simple: abandon the pursuit of 100x returns on low liquidity Solana meme coins and instead focus on pursuing 10-20x returns on high liquidity Ethereum meme coins, while increasing the investment scale.

Why choose Ethereum meme coin?

Ethereum meme coin has significant advantages:

1. High liquidity: The liquidity of the PEPE/ETH trading pair reaches 49 million USD.
2. Linked to ETH price: When ETH rises, the meme coin may increase more significantly.
3. Historical performance: Coins such as PEPE, MOG, and SPX have had excess returns in the past.
4. DeFi Compatibility: Can be used in conjunction with DeFi protocols.

Select the standard for Ethereum meme coin:

• Online for at least one year
• The locked or destroyed liquidity exceeds 500,000 dollars.
• Contract ownership has been relinquished
• The official website and social media are still operating.
• The community remains active

Price Target

meme coins can be divided into three categories:

1. Leading meme coins (such as PEPE, MOG, SHIB, SPX):

   • Once reached a market value of 1 billion USD
   • Expected returns: 5-10 times
   • Lower risk

2. Mainstream meme coins (such as APU, BITCOIN, BOBO, JOE, NPC, WOJAK):

   • Once broke through a market value of 100 million dollars
   • Expected returns: 10-20 times

3. Shanzhai meme coins (such as BUSINESS, KEKEC, LMI, SMURFCAT):

   • Market capitalization exceeds 10 million dollars
   • Potential returns: 20-30 times
   • High risk

It is recommended to focus on leading meme coins, moderately allocate to mainstream meme coins, and hold a small amount of altcoin meme coins.

Spot Leverage Strategy

Using the IMF protocol, you can use meme coins as collateral for lending, increasing spot leverage. Steps to operate:

1. Buy meme coin (such as PEPE)
2. Deposit meme coin into IMF, lend out USDS
3. Exchange USDS for meme coin
4. Deposit the remaining meme coins to lower the LTV

This can increase the position to 1.5 times while receiving IMF rewards. Currently, IMF supports coins such as PEPE, MOG, and JOE.

For futures or perpetual contract trading, it is recommended to exercise caution and adhere to a low leverage, long-term strategy.

Exit Strategy

1. Set clear profit goals
2. When the coin price rises, first repay the IMF loan to reduce leverage.
3. Use DEX protocol to sell in batches
4. Do not try to precisely time the top; gradually take profits during the uptrend.

Conclusion

The meme coin market has long-term development potential. Although other crypto assets also have investment value, Ethereum meme coins may soon usher in a new round of increases. With DeFi protocols introducing lending and spot leverage functions, a new meme coin season may be on the horizon. This strategy will focus on time-tested established meme coins rather than aggressively trading new coin varieties.