“Launched for 3 days, skyrocketing 10 times, then plummeting 90% in the next 3 days!” In 2025, the frenzy and collapse of Meme coins are happening every day. Especially with the explosion of AI Agent Meme projects, nearly a hundred related tokens have been issued, with some projects skyrocketing 300% upon launch, only to retract 80% within a month. Data shows that in Q2 2025, 90% of popular Meme coins experienced a retraction of over 50% within 3 months, leaving many retail investors with significant losses after chasing highs. As an analyst who has witnessed the rise and fall of countless Meme coins, I want to say: Meme coins are not uninvestable, but one must master “risk control techniques,” otherwise, they will merely become the “harvesting tools” for the big players. Today, let's break down the investment logic of Meme coins, the guide to avoiding pitfalls, and participation strategies.
First, understand the 'core value logic' of Meme coins: it is essentially 'community consensus driven', rather than technology or fundamentals. Bitcoin was also a kind of 'Meme coin' in its early days, rising based on the consensus of 'decentralization and digital gold', while most new Meme coins lack real application scenarios, relying solely on social media hype. The explosion of AI Agent Meme in 2025 is essentially leveraging the heat of the AI track to attract retail participation, but the vast majority of projects have no technological implementation, teams are anonymous, and liquidity is not locked; it is essentially a game of 'pulling and dumping'. Many retail investors incur losses because they mistakenly believe that the rise of Meme coins is supported by fundamentals, blindly chasing high prices and being harvested by speculators.
Share 3 'Meme coin pitfall avoidance rules' to help you avoid 90% of scams. The first is 'team and liquidity check': prioritize selecting Meme coins with transparent team backgrounds and liquidity locked for more than 6 months. Check the liquidity locking situation through DexScreener; if liquidity is not locked, or the locking time is less than 3 months, speculators may withdraw funds at any time, leading to token zeroing; check social media to see if the team is real-name verified; projects with anonymous teams carry extremely high risks. The second is 'community quality assessment': quality Meme coin communities have substantial discussions, not just simple spamming and calling out. Check Twitter and Telegram groups; if the group only has 'pulling people into the group' and 'calling out price increases' without project progress or technical discussions, you need to decisively avoid it. The third is 'market cap and price increase control': choose Meme coins with a market cap of less than 50 million dollars and an increase of no more than 200% within 3 days of launch; projects with excessively high market caps and large increases carry extremely high correction risks.
Let's talk about the participation strategies of ordinary people in 'Meme coins', the core is 'small funds, quick entry and exit'. The first is 'funding limit': the funds used for Meme coin investment should not exceed 5% of total funds; even if there is a total loss, it will not affect the overall assets. The second is 'entry timing': avoid chasing high on the first day of the project launch; projects that increase more than 200% on the first day are likely to correct in the next 3-5 days; you can intervene with small funds a week after the project goes live, provided that community activity remains high and liquidity is stable. The third is 'profit taking and stop loss': set strict profit taking and stop loss, with a profit target of 100%-200%, and sell immediately once reached; the stop loss line is 15%, and if losses exceed 15%, decisively cut losses to avoid greater losses.
Also be aware of a common misconception: 'blindly believing in the myth of 100-fold coins'. The so-called '100-fold Meme coins' in the market are mostly promotional gimmicks from speculators, with less than 1% of projects truly achieving a hundredfold increase. Ordinary investors should abandon the fantasy of 'getting rich overnight' and treat Meme coin investment as a form of 'entertainment investment', rather than a primary source of income. My core view is: Meme coins have opportunities, but the risks are extremely high; the premise for ordinary people to participate is to 'understand risks and control positions'. I will update a quality Meme coin selection list and real-time community activity data on Binance Square in the future, follow me @链上标哥 so you don’t lose your way! I will guide you to rationally mine gold in the Meme coin carnival!
