Behind the Meme Craze: A Look at How the Memecoin Ecosystem Is Profitable

Memecoin has always been a hot spot in the blockchain world, attracting the attention of many traders. The dream of getting rich overnight and the mentality of short-term speculation have driven many people to rush in one after another.

$PEPE, which was born in April this year, was so lightning-fast that it took only 19 days to complete an increase of hundreds of thousands of times and was listed on Binance, becoming the fastest token in history to reach a market value of 1 billion US dollars. The emergence of $PEPE also detonated another wave of Memecoin Season in the encrypted world. The various local dog tokens on the chain of Memecoin Season soared, and the Gas Fee soared. New coins with an increase of dozens of times appeared every day. This trend has continued for nearly For two months, it was not until the end of June that things calmed down.

From the name of the token or the meme attributes and community culture of the avatar itself, to the influence of social media, celebrity endorsements, and the nature of low market capitalization and high volatility, Memecoin is an attractive choice. But at the same time, it is accompanied by ultra-high risks. High volatility means that in addition to rising, it is common to fall or even disappear. In addition, factors such as celebrities shouting orders, and large investors' control information are incorrect, making Memecoin an easy to participate but difficult to master. field.

So as a retail investor, without investing in Memecoin itself, which projects are worthy of our attention? Since the development of the Memecoin field, in addition to many tokens, there have also been many projects serving Memecoin, forming a unique Memecoin ecosystem. These projects are not subject to VC investment. Most of them started from community projects and generally have humble backgrounds. , but has persisted until now and has become a stable customer source and a profitable existence.

Today, DODO Research takes you to know five tools or platforms that many project parties or retail investors who rely on Memecoin will use when participating in Memecoin, and analyze their sources of profit.

1. Pinksale

Project Introduction

Pinksale is a pre-sale platform. The pink pre-sale that is often mentioned in the Tugou community refers to Pinksale. Its main feature is that everyone can issue coins and set pre-sale rules. It provides the most basic Technical support, with Pinksale, the project party only needs to focus on community management and community marketing, and can complete one-click coin issuance without any code foundation.

In addition, for the projects pre-sold on Pinksale, the platform guarantees that liquidity will be deployed, and there will be no situation where the pre-sale money will run away, which also makes many retail investors only willing to participate in the pre-sale activities initiated on Pinksale.

Profit Model and Analysis

The main profit method of Pinksale is to charge minting fees of 0.01 ETH / 0.2 BNB and 5% of the total funds raised for pre-sale tokens in ETH / BNB.

We analyzed its payment address 0x4b04213c2774f77e60702880654206b116d00508. In the six months since 2023, Pinksale has made a total profit of nearly 8M USD (ETH on the left and BSC on the right). They brought 6.4M USD of it. It can be seen that the quality of Memecoin's market has a huge impact on its protocol revenue, and the analysis of the two chains of ETH and BSC shows that Memecoin, which was launched on the platform pre-sale, is more popular on BSC than on the Ethereum mainnet. The reason may be Most Memecoins on the Ethereum mainnet choose fair launch or self-built pre-sale channels.

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In addition, Pinksale also issued the governance token $PINKSALE. The official documents only have unlocking information for this token, and it is stated that 20% of the profit will be used to repurchase tokens and burn them every quarter, but there is no official information on the repurchase and burning. Any announcements made, this token is more like a useless governance token with no value capture function, and there is no mechanism for sharing profits between token holders and project parties, resulting in Pinksale despite making a lot of profits in the first half of 2023 It is also not reflected in the token price.

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2 UNCX Network (原 Unicrypt)

Project Introduction

UNCX Network, formerly known as Unicrypt, is usually called Green Horse in the Chinese circle, and the services provided are mainly lock pool services. Generally speaking, Memecoin tokens will choose to deploy liquidity in AMM DEX. Liquidity is the only basis for the value of tokens. Therefore, whether liquidity can be removed at any time is a major point of consideration for traders, which also makes UNCX’s lock pool Services are a must for almost every Memecoin.

When the liquidity of the project party is not locked, few people will take risks to trade, and UNCX, as the first to propose the concept of lock pool in the market, is also the most famous lock pool platform adopted by most projects, which naturally becomes the reference standard for retail investors One, and therefore the project party would rather give up other cheaper solutions on the market and choose to pay to lock its liquidity on UNCX.

Profit Model and Analysis

The main income of UNCX Network is 0.08 ETH / 0.3 BNB charged when the pool is locked and 1% of the locked liquidity.

According to the analysis of its receiving address 0x997cc123cf292f46e55e6e63e806cd77714db70f, the profit has exceeded 4.5M USD since the beginning of 2023 (the left is ETH in the figure below, and the right is BSC). In the past quarter, affected by the Memecoin Season, the profit has reached 2.5M USD.

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In addition, UNCX has issued the same-named governance token $UNCX and reward token $UNCL, but there is no inkling on the token model and value capture, only the old-fashioned pledge mining and repurchase token burning mechanism, burning even There has been no record since April 2021. The project’s profit cannot effectively benefit the token holders, which also caused the price of the governance token $UNCX to not change with the increase in the project’s revenue.

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3. Dextools

Project Introduction

Dextool is a K-line website and aggregation trading platform. In addition to the line-watching and trading functions, it also provides descriptions of various information about tokens, including project introductions, community links, etc. Kanban for banner advertising. The Memecoin project party can pay Dextools to update the token information, and post hot searches or advertisements to provide project visibility.

Although there are many alternative and free platforms on the market, Dextools, as the oldest watchline aggregation trading website in the market, still maintains its leading position. For Memecoin players, paid Dextools is a way to judge whether a project has intentions for marketing Therefore, the project party will still choose to pay for Dextools to update token information in order to attract people.

Profit Model and Analysis

The main profit of Dextools is the fee of 1300 DEXT, 3 BNB or 0.5 ETH required to ask the project party to update the token information. Unlike Pinksale and UNCX, the Dextools token $DEXT has a stronger value capture capability, and Dextools uses the token $ The dynamic adjustment of the DEXT payment method ensures that it remains the cheapest payment method, and this part of the income paid in DEXT will be destroyed regularly to permanently deflate.

Based on the analysis of the Dextools charging address 0x997cc123cf292f46e55e6e63e806cd77714db70f, we have obtained a total of about 6M USD worth of income (ETH on the left and BSC on the right) from the beginning of 2023 to the present, and since the Memecoin Season detonated by $PEPE in April, Then nearly 4.7M USD was harvested.

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Nearly 1/3 of the income is paid through $DEXT, benefiting from its deflation mechanism (about 15k $DEXT is destroyed per day on average), $DEXT has increased by up to 6 times this year, and it still has a 4-fold increase after the current correction, which is A token that will perform quite well in 2023.

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4. Maestro

Project Introduction

Maestro is a Telegram chat room robot that provides retail investors with the functions of quickly buying coins and various stop-profit and stop-loss orders. Users can recharge money into the wallet address provided by Maestro, and then they can talk to the robot on TG to realize buying and selling coins. Trading, due to its high volatility characteristics, the transaction speed has a considerable impact on the income. Therefore, the faster the transaction or even the immediate purchase of the project as soon as the liquidity is deployed, it can often benefit a lot. Maestro is for professional A tool designed for Memecoin players.

**However, users need to be very careful when using this type of tool, and should not invest large sums of money to avoid losses due to concerns about private key leakage. **

Profit Model and Analysis

Maestro's profit model is to draw 1% of the user's transaction fee income from the amount of each transaction. When the user's accumulated handling fee reaches 0.01 ETH, it will be automatically transferred from the address to the Maestro receiving address.

From the data of Defillama, it can be seen that its cumulative income in 2023 is close to 12M USD, and the Memecoin Season has quickly recorded about 10M USD in the past three months. It can be said that it is one of the most profitable projects in this quarter.

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Although Memecoin has been relatively extinguished this month, Maestro still ranks eleventh in the Defillama fees and revenue Kanban, surpassing many famous Defi protocols such as Metamask, Compound and Curve, etc., and even public chain projects such as Arbitrum, Optimism, Avalanche and Polygon can only come close.

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5. Unibot

Project Introduction

Unibot and Maestro have the same business content and are both TG trading robots. There is no difference in product functions. The only difference is that Maestro does not issue tokens, while Unibot has its own token with the same name and a token dividend mechanism. Retail investors have the opportunity to share and share The project parties share the value captured by the agreement, and Unibot has a recommender system, so it has a relatively high visibility in the Twitter community. The next stage of product updates in the team roadmap will be to cooperate with GMX and Dopex, and TG robots will be able to use GMX's perpetual contracts and Dopex's option products.

Compared with the above four projects, Unibot is relatively young. It was just launched in May this year. The products and tokens were launched at the same time, and its tokens were launched in a fair way, with a maximum increase of 400 times. It can be said that this quarter Divine coins.

Profit Model and Analysis

Unibot's profit model is the same as that of Maestro, which takes 1% of the user's transaction amount as a handling fee, but benefits from the Unibot token mechanism, $Unibot itself is a tax-included token, and a 5% fee is required for buying or selling in transactions Tokens are used as taxes, and this part is also regarded as project party income. Since the launch of the project, the cumulative income has exceeded 1630 ETH, about 3M USD, of which 166 ETH (300K USD) comes from the fee income.

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And two weeks ago, 6/14 began to implement dividend rewards. 40% of the project income will be distributed to token holders. The cumulative dividend has been about 200 ETH (about 380K USD), and $Unibot has also benefited from the good news. 3 times.

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Summarize

The five projects introduced above seem inconspicuous, without a strong background, and without a refreshing innovation mechanism, but their income is amazing. When the Memecoin market on the chain is good, the income of these projects is even higher. It can far exceed many Defi and even public chain projects, and the amazing profitability is a common feature of these five projects.

However, it should be noted that a good product is not necessarily a good investment target. From the above several project tokens, it can be seen that the project has high profits but does not have a good token model, and it is impossible to divide the project income into Giving profit to token holders will not help, but on the contrary, if it has a token mechanism designed for profit sharing and a project with such strong profitability, it is very likely to be a good investment target.