Analyst: Ignore the Hype, Trade the Momentum of AI Memecoin
GOAT’s success has triggered a new phenomenon: AI memecoin. Whether this is going to be a permanent trend is not well recognized. There are however many speculations about making possible profit from it. Be it as it may, this is a development nobody actively involved in the crypto space can’t ignore.
For now, nothing is even similar to GOAT that recently extended weekly gains to nearly 200%, and Truth Terminal. As David Zimmerman says in his K33 analysis, the real test for GOAT and its sister tokens would be beyond this initial significant selloff. The market is in price discovery, and social media conversations about this developing narrative are highly active.
However, for Zimmerman and K33, the longevity of AI memecoin per se, is not the key. They primarily view tokens featuring cute animals, new DeFi projects, or LLM-associated themes as one crucial concept: momentum-trade opportunities.
The crypto market always creates original stories, but they boil down to momentum or volatility. At GOAT, there have been extreme price movements with substantial trading volume, especially for reasonably small on-chain tokens.
When it comes to raw data, there’s quite a way for AI coins to go before they challenge established names such as DOGE and PEPE. For Zimmerman, the view is simple: skip the chaff and get down to hard facts.
He said that if the optimistic promoters of such tokens are right, and this really is the start of a promising season similar to the DeFi Summer of 2020, the nascent sector could provide opportunities that last for several months. Unless that rosy outcome comes true, investors should be sure not to be holding the bag of inferior AI coins.
Community following and market trends are also significant in understanding the best opportunities within this shifting space.
Singularity Tokens or a Coordinated Fantasy?
This overview thus evidences the rapidity in the rise of AI coins. Most of the activities are happening within X accounts operated by LLMs shilling related tokens. For now, these products are very rudimentary, and it’s not clear if future iterations can live up to the lofty ideals many have had.
After the recent major selloff, the main talk of the crypto-town GOAT, and related tokens will be resistant to the market price discovery.
For one camp, certain AI memecoin is a representative of a new secular paradigm, with GOAT at its helm. Something similar as how DOGE was to an ‘old’ version of memecoins. Enthusiasts have even referred to these as “singularity tokens” or “sentient memes,” predicting a future where AI, markets, and memetic influence combine.
On the other side, the critics argue that the LLMs are actually not real. They claim there is a coordinated narrative by insiders leading into a fantasy.
The takeaway, if anything, is simple. The underlying substance may mean less than the momentum that is thereby created. Be it cute animals, obscure DeFi project, or AI memecoin, the very essence of such assets more often than not boils down to providing volatility-based trading opportunities.
A look at GOAT shows rather wild price swings and high trading volumes-a sure sign of speculation, at least in the crypto space.
The post How to Profit from the AI Memecoin Trend? appeared first on CoinGape.
Earn more PRC tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://parrotcoin.net0
PRC Comment Policy
Your comments MUST BE constructive with vivid and clear suggestion relating to the post.
Your comments MUST NOT be less than 5 words.
Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.
Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.
Constructive REPLY to comments is allowed