New Under-The-Radar Polkadot Memecoin

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26 May 2024

Get There First
With memecoins, as with any altcoin investment, arriving early is 90% of the victory. Micro-caps have a way of taking off without any prior warning. Memecoins can often behave similarly. These, of course, are the most speculative investments within the Crypto space. Memecoins carry the most significant risk, as there usually needs to be more utility regarding an actual project, protocol, or use case.
Micro-caps are a different story. Some of the most prominent blockchain projects were once undiscovered gems within the micro-cap space. One of my altcoin picks from the final quarter of 2023 was a memecoin with a $24 million market cap which has since grown to a market cap above $3 billion. Here is a link to the article I published in October of 2023. As depicted in the screenshot below, I identified BONK before the frenzy and the hype.

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Anyone who invested $1000 would have realized $67K had they sold the peak. I am not saying that a similar outcome is awaiting today’s memecoin. However, I am drawing attention to the fact that the early discovery of memecoins can be an incredibly lucrative practice. In this particular instance, the market cap is low, making it less of a gamble, and one with a good risk/reward ratio.
Dogwifdots
Memecoins are one of the best ways to leverage the layer 1 effect. A memecoin rally will inevitably accompany any layer 1 blockchain that experiences a seasonal rally. Memecoins within a particular ecosystem perform phenomenally well alongside such an event. Dogwifdots is yet to be discovered by memecoin traders. This is primarily due to WIFD not being visible on Dexscreener.

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As a result, the project remains hidden with a market cap of only $44K at the time of writing. These are the memecoins you want to own when Polkadot’s price begins to reflect the recent partnerships, adoption, and technical improvements. The best performing Polkadot memecoin has been PINK, which reached a market cap valuation of approximately $12 million. If WIFD enjoys community adoption, it could produce some decent gains for early investors.
The current holders of WIFD are primarily Polkadot community members. This particular memecoin is yet to be discovered by Polkadot holders. Due to the market cap valuation and positive sentiment regarding the Polkadot ecosystem, Dogwifdots offers a relatively attractive risk/reward ratio, especially regarding memecoins. This is a risky asset class.

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Final Thoughts
Due to the inherently high risk associated with memecoins, one should invest only what they are willing to lose. Memecoins can create fortunes. However, they can also destroy fortunes. Effective risk management is key, and should never be sacrificed regardless of how good an investment opportunity may appear. I am expecting an initial run for WIFD. However, I expect a significant rally once Polkadot (DOT) begins to rally.
Always remember to conduct your own research before entering a trade. DYOR is at the heart of prudent altcoin investments. I am keen to see how the community responds to WIFD. After the DED debacle, it might be what’s needed. Anyway, that’s it for this one. See you next time!

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Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.