Original Title: How To Retire Off Memecoins
Original Author: NEET, Crypto KOLOriginal Translation: AididiaoJP, Foresight News
I will share how to achieve financial freedom through memes in this cycle, which is a concrete execution strategy, not just an idea. Yes, I'm not joking.
For the past one to two years, I have been accumulating meme coins on Ethereum. I buy on dips and have no plans for short-term selling. Currently, meme coins account for 80% of my portfolio.
At the same time, I am gradually selling my meme holdings on Solana. The liquidity of meme coins in the Solana ecosystem has been decreasing. With a few exceptions, the returns on meme coins have been declining since the launch of TRUMP and MELANIA in January.
The meme coin battlefield on Solana will never disappear, with new meme coins surging and plummeting every day. But we can find safer and higher-return opportunities on Ethereum.
From a macro perspective, my meme coin strategy is very simple:
Stop making scattershot bets on illiquid Solana meme coins in pursuit of 100x returns.
Start pursuing 10-20x returns on liquid Ethereum meme coins and invest more funds.
Part One: Why Choose Ethereum Memecoins?
The liquidity of the PEPE/ETH trading pair is as high as $49 million. What happens to the price of PEPE when the price of ETH doubles or triples?
My point is simple: ETH will rise, and the gains of meme coins will be even greater.
In the past 1-2 years, we have seen excess returns from meme coins like PEPE, MOG, and SPX. The price performance of these coins has outperformed ETH and is likely to continue this trend in the future.
If an Ethereum meme coin meets the following criteria, add it to your watchlist and keep a close eye on it:
· Has been online for at least a year
· Locked or burned liquidity exceeds $500,000
· Contract ownership has been renounced
· Official website and social media are still operational
· Holders maintain a certain level of activity on Telegram or Twitter
These coins will significantly outperform ETH in the upcoming altcoin season, and that moment may be closer than you think.
Additionally, Ethereum meme coins have a hidden advantage: they are compatible with DeFi. This will be explained in detail later.
Next is the part everyone is looking forward to.
Part Two: Price Targets
Everyone cares about price targets.
No one can accurately predict price movements, but reasonable estimates can be made based on various indicators. Remember: whether you like a coin or agree with its meme culture, almost all meme coins will rise in a bull market.
Let's start with the leading meme coins:
· PEPE
· MOG
· SHIB
· SPX
I define leading meme coins as those that have reached a market cap of $1 billion. At the current price level, their expected returns are 5-10x. Holding these coins can help you sleep soundly, as a 90% drawdown is almost impossible unless a catastrophic event occurs.
Next are mainstream meme coins:
· APU
· BITCOIN (HarryPotterObamaSonic10Inu)
· BOBO
· JOE
· NPC
· WOJAK
These coins have surpassed a market cap of $100 million, typically listed on second-tier exchanges, and have active communities and loyal holders. These mainstream meme coins are expected to have 10-20x upside potential.
Finally, there are small-cap meme coins:
· BUSINESS
· KEKEC
· LMI
· SMURFCAT
These are small-cap meme coins with a market cap just over $10 million, not listed on exchanges, with lower liquidity and trading volume, but greater volatility. Not all small-cap meme coins will surge, but those that perform well may yield 20-30x returns.
The portfolio should focus on blue-chip meme coins, moderately allocate to mid-cap meme coins, and hold a small amount of small-cap meme coins as speculative bets.
Part Three: Spot Leverage
Don't let anyone tell you that meme coins are worthless.
After buying meme coins, what’s the next step? Use meme coins for DeFi.
The IMF@intlmemefund protocol allows you to use meme coins as collateral for lending.
Why use IMF to collateralize loans with meme coins? I use it to increase spot leverage on my holdings. Now, for every $1 increase in meme coins, I can earn $1.5.
Here’s how it works:
· Buy $10,000 worth of PEPE
· Deposit PEPE into IMF and borrow $5,000 USDS
· Convert USDS into PEPE
· Deposit the remaining $5,000 PEPE to reduce the loan-to-value (LTV) ratio
Now the amount of PEPE you hold has increased by 1.5 times. You will only face liquidation if the price of PEPE drops 66% from the current level, and the likelihood of that happening decreases every day.
Moderate leverage can bring huge returns. A 1.5x exposure to PEPE can help you sleep soundly. Additionally, after completing this transaction, you can also earn IMF rewards, making it a win-win situation.
Initially, I did not realize the potential of IMF. But now communities like MOG and JOE are buying more tokens and driving prices up with new buying pressure.
IMF currently supports PEPE, MOG, and JOE, and will support more coins in the future.
So what about futures or perpetual contract trading on Binance, ByBit, and Hyperliquid? I recommend proceeding with caution. Meme coins on Ethereum are more mature, and their rise takes longer; this is a game of patience, and an increase is just a matter of time.
If you want to swing trade, stick to low leverage, long cycles, and never invest more than you can afford to lose.
Part Four: Exit Strategy
The final step is the simplest.
The positions have been established, and the next step is not to wait idly but to patiently wait. The time for Ethereum meme coins will eventually come. The market is cyclical, and the moment for funds to rotate back to Ethereum meme coins is approaching.
In any case, it is crucial to set clear profit targets. If you do not plan to sell a certain percentage or amount of meme coins, your position will be like a roller coaster.
When your coins start to rise, first repay the IMF loan and reduce your spot leverage. Then gradually sell using protocols like @1inch or @CoWSwap, exiting in multiple transactions.
Do not try to time the top perfectly. You need to take profits in batches as the coin price rises. Gas fees on the Ethereum mainnet are low, so you can sell multiple times as needed.
After completing these steps, you have successfully captured the bull market and achieved financial freedom through meme coins.
Conclusion
I must admit and execute this trading strategy.
Meme coins will exist for the long term.
Although I also have a positive outlook on other crypto assets (including NFTs and some Solana meme coins), I firmly believe that Ethereum meme coins are like beach balls underwater, eventually rising to the surface.
In a bear market environment, we have already seen the rise of MOG and JOE, rebounding from the February lows. With DeFi protocols like IMF introducing lending and spot leverage features, a new season of meme coins is likely just around the corner.
This time, I will not trade new coins aggressively but will stick to those time-tested old meme coins.
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