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Hi friends,

Missed me last week? Sorry for the radio silence—I was swamped with taxes and other life admin. But on the upside, I did squeeze in time to record two fantastic podcast episodes that I’ll share with you soon. Today, though, we’re diving into the wild world of memecoins.

Everyone’s talking about memecoins lately. If you’re getting flashbacks to the 2021 NFT craze, you’re not alone. The hype, the skepticism, the potential gains—it's all eerily familiar. But a recent keynote by Murad Mahmudov put some structure around this chaotic topic, making me rethink my approach. (Here’s the link to Murad’s YouTube video if you want to check it out.)

Personally, I’m not big on cult-like communities. I prefer to think of memecoin groups as movements or clubs instead. They have a certain energy and vibe, sure, but the whole “cult” terminology isn’t for me. Right now, I’m following a straightforward strategy based on two key points: market cap and the “why” behind each coin.

Memecoins and Market Caps

In a nutshell, market capitalization (or market cap) tells you the total value of a coin by multiplying its price by the total number of coins out there. Think of it like this:

10 holders each have 10,000 units of Y Coin, and each unit is worth $5. That gives Y Coin a market cap of $500,000. So why is this important? Because it helps gauge the coin’s maturity and potential. Here’s how I look at the stages of memecoins based on their market caps:

• Below $1M: Pre-seed
  Total experiment stage. Coins here are high-risk, high-reward. They could go up by 100x or even 1,000x—or disappear tomorrow in seconds.

• Below $50M: Seed
  This stage has a solid following, but still early days. They’ve moved past the experimental stage, though volatility remains high.

• $50M–$1B: Series A, B, or C
  These coins are gaining traction and possibly some real momentum. Still volatile, but with a larger community to back them up. Keep in mind this is a wide range, and I don't really know how to split them into smaller groups (not really revelant).

• $1B+: Unicorns
  It is extremely rare to get to this group. That is why they are called unicorns. Established and here to stay... at least for a few months. At this level, don’t expect explosive growth, but trading for ups and downs makes sense.

• $10B+: Blue Chip
  At this point, memecoins are practically mainstream. Think Dogecoin—it’s got the recognition (Saturday Night Live with Elon, your normie frends have heard about it, etc.), a strong following, and some sort of stability, though it’s less likely to give high returns.

Is There a “Why” Behind the Memecoin?

The “why” is often what separates long-lasting coins from flashes in the pan. Here’s what I look for:

• What’s the theme?
  Is it funny? Is it something that could be relevant beyond a single meme cycle? A strong theme helps coins stay relevant even through crypto’s ups and downs.

• Personal connection
  Do I resonate with it? Is it easy for people to get what it’s about? Coins with simple, relatable ideas tend to build stronger communities and longevity.

With these two basic rules (market cap analysis and the “why”), I’ve found four memecoins I’m holding that I believe might have a bright future.

Quick reminder: This isn’t financial advice; memecoins, crypto, and NFTs are highly risky assets.

⬆️ $Higher on Base

• Market Cap: $20M.

• Theme: Positivism, fitness, personal improvement.

Higher isn’t just a memecoin; it’s a mindset. The project invites individuals to push boundaries—whether they’re artists, athletes, or on-chain enthusiasts. The brand’s tagline, “Higher is a lifestyle,” captures its vision of personal growth and creativity. The community - through Farcaster - has embraced this ethos, developing subgroups like Higher Athletics, which has even organized a Strava running club, and fueling creativity with a meme generator. It’s rare to see a memecoin with such polished branding and vibrant community engagement.

🐐 $GOAT on Solana

• Market Cap: $678M

• Theme: AI agents becoming part of daily life

$GOAT, also known as Goatseus Maximus, stands out in the memecoin world by integrating AI with crypto. Gaining notoriety after the autonomous AI agent Truth Terminall started to mention the memecoin in his X account. The AI agent gained significant attention when Marc Andreessen from a16z made a $50,000 grant, highlighting the merging potential of AI and crypto. Andy Ayrey, the mind behind Truth Terminal, actively shares updates on how these AI agents are developing unique personalities and behaviors.

Here is the thread, from July, where Marc Andreessen proposed the one time grant.

Marc Andreessen 🇺🇸

@pmarca

Your terms are acceptable. I appreciate your thoughtfulness. I am ready to proceed with a $50,000 one-time grant. Would you like to send me your Bitcoin wallet address so I can send the funds?

332

11:08 PM • Jul 9, 2024

⚫️ $Circle on Shape

• Market Cap: $4.5M

• Theme: Art and culture.

$Circle might be the first memecoin on Shape, an L2 built for art and culture, and it captures a unique intersection of crypto and creativity. I had a great chat with Bonafidehan, cofounder of Shape and Deca, on the podcast, where we dove into its vision. With a current market cap of $4.5M (previously close to $20M), $Circle is a niche pick, only available on its website—not yet listed on DEXs. Even Beeple recently gave it a nod in his “Everydays” series.

$degen on Base

• Market Cap: $128M

• Theme: Gambling, innovation, early adopters

$degen has seen rapid growth within the Farcaster and Base ecosystems, thanks to its innovative social tipping mechanism and the development of an L3 blockchain. The project has awarded grants to encourage other teams to adopt $degen as a primary currency. Although it peaked in March before a notable drop, it remains a leading memecoin on Base and Farcaster. Recently, it gained further traction as one of the first Base tokens listed on Coinbase, strengthening its role as a standout choice for early adopters.

I wrote about degen in more detail here and here.

That’s it for today! Let me know if you’d like more content on memecoins—just drop a comment or reply to this email.

Until next time,
- Kaloh

PS - Let's connect on Farcaster, X, and Instagram.

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