Co-founder of Mechanism Capital: Meme coins will perform the best in this bull market
According to CryptoPotato, Andrew Kang, a cryptocurrency trader and co-founder of Mechanism Capital, believes that meme coins will surpass all other digital assets in this bull market. He pointed out that these tokens are purely speculative tools. In a tweet on Sunday, Kang stated that the crypto market may see Ethereum (ETH) prices rise by 50%, but the value of meme coins could increase by 5-100 times. This surge will give rise to a new generation of elite meme coin holders, similar to the whales and early adopters created by Bitcoin (BTC), ETH, and Solana (SOL). Kang likened the meme coin ecosystem to a skill-based global lottery platform where players can choose which brand of lottery tickets to purchase. However, with varying payments and odds, skills are required. Winners of the jackpot are not solely reliant on luck but on skill and strength. This makes everyone believe they can find the next winner.
Kang mentioned that the traditional global lottery industry had sales of around $300 billion in 2020, with half coming from the United States. If funds similar in scale flow into the meme coin sector, their valuation would reach incredible levels. He further explained that the previous bull market was a testing pump phase for meme coins just like Bitcoin went through when it surged from $100 to $1,000.
However, these tokens will truly gain momentum in this current bull market because their product-market fit has been validated earlier along with global acceptance and lifestyle changes.
Kang believes that in this bull market cycle, meme coins will far exceed other cryptocurrencies as most crypto enthusiasts do not care about fancy new technologies offering throughput advantages or be attracted by yet another decentralized finance (DeFi) farm ranked at number 10k; he considers them "self-referential Ponzi schemes" aimed at retail traders who lack understanding. At the same time,Kang points out significant risks associated with DeFi projects and layer one tokens in today's bullish environment.
