MemeCoin Terminology

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DMA Coins

General Crypto Terms

● Blockchain: A decentralized ledger where all transactions are recorded.


● Token: A digital asset built on an existing blockchain.
● Wallet: A digital tool to store, send, and receive cryptocurrencies.
● Altcoin: Any cryptocurrency that isn’t Bitcoin.

Memecoin-Specific Terms

● Memecoin: A cryptocurrency inspired by memes or internet culture, often created for fun
rather than utility (e.g., Dogecoin, Shiba Inu).
● Shill: To actively promote a namecoin to attract new buyers.
● HODL: A misspelled form of "hold," meaning to keep your tokens despite market volatility.
● Diamond Hands: Holding onto your memecoins even when the market is turbulent.
● Paper Hands: Selling your memecoins at the first sign of market pressure.
● Pump and Dump: A scheme where a memecoin's price is artificially inflated (pumped) and
then sold off (dumped), causing a crash.

Buying & Trading

● Whale: An investor holding a massive amount of a specific memecoin.


● Bagholder: Someone stuck with a large amount of a memecoin after its value crashes.
● Moon: When a memecoin's value skyrockets (e.g., "This coin is going to the moon!").
● Rug Pull: A scam where developers abandon a project and run off with investor funds.
● Liquidity Pool: A pool of funds that enables trading and stabilizes token prices.
● DEX (Decentralized Exchange): A platform where users trade tokens directly (e.g., Uniswap,
PancakeSwap).
Community & Culture

● FOMO: Fear of Missing Out; the anxiety of not buying a coin before it pumps.
● FUD: Fear, Uncertainty, Doubt; negative news or rumors spread to lower a coin’s price.
● Degens (Degenerates): Crypto enthusiasts who invest in high-risk memecoins.
● Aping: Buying a memecoin impulsively without much research.
● DYOR (Do Your Own Research): Encouragement to investigate before investing.

Core Metrics

● Market Capitalization (Market Cap)


○ Formula: Market Cap = Price × Circulating Supply
○ What It Means: Indicates the total value of the coin in the market. A high market cap
often signals a more established project, while a low market cap suggests higher
volatility and risk.
● Circulating Supply
○ Definition: The number of coins currently available and circulating in the market.
○ Impact: Lower supply with high demand can drive up prices, while oversupply might
dilute value.
● Total Supply
○ Definition: The number of coins that exist, including those locked or reserved.
○ Contrast with Circulating Supply: Helps determine how much of the token is actively
available versus held by developers or locked in smart contracts.
● Max Supply
○ Definition: The maximum number of coins that will ever exist.
○ Impact: Coins with a fixed max supply (e.g., Bitcoin) may gain value over time due to
scarcity, while unlimited-supply coins rely on demand and burn mechanisms.

Trading Activity Metrics

● Volume (24h)
○ Definition: The total value of a memecoin traded within the last 24 hours.
○ Significance: High volume indicates strong market interest and liquidity; low volume
may suggest declining interest or difficulty in buying/selling.
● Liquidity
○ Definition: The ease of buying and selling a token without drastically affecting its
price.
○ Importance: Higher liquidity means smoother trades and less risk of price
manipulation.
● Volatility
○ Definition: The degree to which a memecoin’s price fluctuates over time.
○ Impact: Memecoins are often highly volatile, meaning they can swing wildly in either
direction.

Supply Dynamics

● Burn Rate
○ Definition: The speed at which coins are permanently removed from circulation, often
through "burn" events.
○ Purpose: Reducing supply to create scarcity and potentially increase value.
● Inflation Rate
○ Definition: The rate at which new coins are added to the total supply.
○ Impact: High inflation can dilute existing coins’ value, while deflationary coins may
gain value over time.
● Distribution
○ Definition: How tokens are allocated across holders (e.g., developers, whales, public).
○ Significance: Uneven distribution (e.g., concentrated in whale wallets) can lead to price
manipulation.

Value Indicators

● Price Action
○ Definition: The movement of a memecoin’s price over time.
○ Tools: Use charts to identify trends like pumps, dumps, or consolidation phases.
● All-Time High (ATH)
○ Definition: The highest price ever reached by a memecoin.
○ Relevance: Serves as a benchmark for potential future growth.
● All-Time Low (ATL)
○ Definition: The lowest price ever recorded.
○ Importance: Highlights the coin’s risk and recovery potential.
● Price-to-Market Cap Ratio (P/M Ratio)
○ Definition: A comparison of the token's price to its market cap.
○ Use: Helps gauge whether a memecoin is overvalued or undervalued relative to its
supply and market demand.

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