The Wild World of Memecoins: How to Spot the Next Dogecoin or Shiba Inu | by Allison Brown | The Capital | Jan, 2025

Memecoins are the adrenaline-fueled rollercoasters of the crypto world. What started as a joke with Dogecoin (DOGE) has evolved into a market phenomenon where coins like Shiba Inu (SHIB) and PEPE have turned early adopters into overnight millionaires. But with great hype comes great risk.

If you’re ready to dive into the wild world of memecoins, this guide will show you how to spot promising tokens, avoid scams, and manage your risks like a pro.

Not all memecoins are created equal. Here are the key factors that make some memecoins rise above the noise:

1. Community Hype

A strong and passionate community is the lifeblood of any successful memecoin. Platforms like Twitter, Reddit, and Telegram are often buzzing with memes, jokes, and price speculation.

2. Celebrity Endorsements

Influencers like Elon Musk can send memecoins soaring with a single tweet. Dogecoin’s massive price surge in 2021 was fueled largely by Musk’s constant shoutouts.

3. Low Entry Price

Most memecoins launch with tiny prices, making it easy for small investors to buy millions (or even billions) of tokens. This low barrier to entry attracts degen investors looking for the next 100x.

4. Unique Narrative

The most successful memecoins are backed by relatable or funny themes. For example, Shiba Inu tapped into the Doge meme culture, while PEPE capitalized on internet meme nostalgia.

1. Check the Community

An active and engaged community often signals a project with potential. Look for lively discussions on Telegram, Discord, or Twitter. A dead or inactive community? That’s a red flag.

2. Research Tokenomics

The coin’s supply and distribution matter. Look for fair token allocations and deflationary mechanisms like burns, which help maintain value over time.

3. Study the Marketing Strategy

Good memecoins go viral through clever memes, campaigns, and collaborations. If the project has a solid social media presence and a clear marketing plan, it may be worth exploring.

4. Look for Early Listings

Platforms like DEXTools and CoinGecko help you find newly launched tokens. Early entry often means higher profit potential if the coin gains traction.

• DEXTools: Use this to track new token launches, liquidity pools, and price charts in real-time.
• LunarCrush: Analyzes social sentiment and activity around specific coins, helping you spot the next trending memecoin.
• Token Sniffer: Scans contracts for potential red flags like rug-pull vulnerabilities or unaudited code.

Memecoins are high-risk, and scams are rampant. Here’s how to protect yourself:

• Anonymous Teams: Be cautious if the developers remain unidentified or refuse to share their credentials.
• No Locked Liquidity: Without locked liquidity, developers can withdraw funds, leaving investors with worthless tokens.
• Too Good to Be True Promises: Claims of “guaranteed profits” are a major warning sign.
• Fake Partnerships: Verify any collaborations or endorsements through official sources.

Dogecoin (DOGE)

Launched as a joke in 2013, Dogecoin gained legitimacy through its community and Elon Musk’s endorsements. Early adopters saw massive returns as the coin surged to over $0.70 in 2021.

Shiba Inu (SHIB)

Dubbed the “Doge Killer,” Shiba Inu capitalized on meme culture and ecosystem expansion (e.g., ShibaSwap). Early investors saw over 1,000x gains during its peak.

PEPE

Leveraging the internet-famous Pepe the Frog meme, PEPE exploded in popularity, making its early buyers significant profits despite having no utility.

Key Lesson: Timing, community buzz, and early entry are critical for profiting from memecoins.

• Invest Small: Only put in what you can afford to lose. Memecoins are highly speculative and volatile.
• Take Profits Early: Set profit targets and withdraw your initial investment when the price pumps.
• Diversify: Don’t go all in on one memecoin — spread your bets to reduce risk.
• Stay Updated: Follow project news, social media trends, and influencer activity.

Memecoins are unpredictable, volatile, and fueled by internet culture, but for those willing to take the risk, they can deliver massive rewards. Whether you’re chasing the next Dogecoin or looking to flip the latest meme token, always do your homework and stay cautious.

Remember, in the world of memecoins, fortune favors the bold — but only the smart ones survive the ride. 🚀