The rush about meme coins is the most talked about topic in the crypto money world this year. From the launch of these to the latest regulation of Hong Kong, many issues have been on our agenda recently.
A new wave for meme coins?
cryptocoin.com As we have mentioned above, a certain set of tokens has encountered a great demand in the crypto money markets. Binance CEO Changpeng Zhao also took his place in the frenzy after “CZ”’s latest retweet. On April 16, the meme coin PEPE was released. On the other hand, the meme coin craze started in the following days. Its market cap rose from a few million dollars to $567 million on May 1. FOMO and frenzy are on the rise. The market cap of the frog-themed meme coin among meme coins reached $1.8 billion on May 5. This move caused a bullish reaction in the larger crypto markets. On May 5, Binance listed Floki Inu (FLOKI) and PEPE (PEPE). CZ commented in an AMA that same day, saying:
I personally have never really understood the topic of meme coins. There are many successful people who seem to understand them, including Elon Musk and others. So we’re going by users. Anyone who trades a coin, wants it, plays with it, etc. If it has a large number of users, we will most likely list it.
On May 22, China-linked altcoins such as Conflux (CFX), NEO (NEO), and Alchemy Pay (ACH) started to rise. In retrospect, this looked like a pre-news event pump. On May 23, Hong Kong’s Securities and Futures Commission (SFC) allowed registered exchanges to offer cryptocurrency trading to individual investors. On May 24, China Central Television (CCTV) released a video talking about the Solana-based meme coin Samoyedcoin (SAMO) and its NFT. Shortly after, Binance’s CZ retweeted this CCTV video, sparking backlash from crypto enthusiasts.
Understanding market cycles and investor sentiment
Measuring traders’ sentiment is key to identifying market trends. If done correctly, it can be used to identify loop tops and bottoms. In the cryptocurrency space, there is a critical observation that applies to the last two cycles. It is also that meme coins or peak individual investor interest tends to trigger a bull run. However, this may also tend to mark the end of the bull run. Here are a few examples:
- December 18, 2017 – CME opens Bitcoin futures. This event marked the peak of the 2015-2017 cycle.
- September 23, 2019 – Bakkt launches after two delays and 13 months of question marks. This excitement caused the Bitcoin price to depreciate 24% in the next three days and 62% in the next six months.
- May 8, 2021 – Bitcoin price dropped nearly 50% after Elon Musk hosted Saturday Night Live (SNL).
On the contrary, rallies on meme coins also tend to mark the start of a bull run. Shiba Inu price rose 330% from October 4-7, while Bitcoin price rose 15% during the same period. This explosive move in SHIB sparked interest in users, which started a bull run for the larger ecosystem.
Will CZ be the next Elon Musk for meme coins?
Tesla CEO Elon Musk is feeling great interest in meme coins during the 2021 bull run. Therefore, he was an important factor in the bull run. Musk called himself the Dogefather. In addition, his tweets caused great increases in volatility and mobilized the markets. But lately, Musk’s influence on the markets has drastically diminished. It looks like Binance CEO CZ may take the helm after the latest developments. Retweeting images of CCTV mentioning the SAMO meme coin and listing Floki Inu (FLOK) and PEPE (PEPE) is indicative of this.
But unlike Musk, CZ is less reckless and more of a leader in the digital asset space. After the collapse of FTX, Binance CEO represents the crypto community. It launched proof of reserve, which eventually became an industry standard. Therefore, it is necessary to answer the question posed in the title. If CZ wants it, Elon Musk will be the next for meme coins. But it’s unlikely that the CEO will randomly tweet pictures of Dogecoin, Shiba Inu, or other related meme coins.
