MemeCoin Terminology
MemeCoin Terminology
MemeCoin Terminology
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.
● 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
● 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.