Community Sentiment Rallies 70% of Meme Coins’ Success

Meme coins rely heavily on their community backing and support. Roughly 70% of their profits are contingent on community sentiment and only 30% on the meme coin itself. 

On the X platform, Bitcoin Analyst and CIO at Adaptive Capital Management Murad Mahmudov remarked:

But when you’re buying memecoins, you are, first and foremost, betting on people.

Bitcoin analyst, Murad Mahmudov

Murad Mahmudov Believes Meme Coins Depend on Community Engagement

Analyst Murad Mahmudov agrees that a meme’s credibility, aesthetics, and ticker symbols help to bolster its markets. However, he emphasized that the success of meme coins is grounded in community support, noting that the meme coin contributes only a third to its success, while community backing rallies the remaining two-thirds.

He added that “Meme Popularity” doesn’t immediately translate to “Memecoin Market Cap”; otherwise, Wojak, Skibidi, and Hammy would already be trading in the billions. He pointed out that it’s clearly more complicated than that,  with meme popularity being just one of around 50 factors to consider.

Currently, the meme coin market has seen a slight 0.1% rise in overall market capitalization. Dogecoin, Shiba Inu, Pepe, Dogwifhat, Bonk, and Floki are in the lead and have the most public followers.

Tron’s Founder Looks at Social Engagement Before Investing in Meme Coin

Justin Sun launched SunPump, the first Tron’s memecoin launchpad platform, on August 9, which surpassed its competitor, Solana-based Pump.fun. Recently, SunPump generated approximately 3.65 million TRX, equivalent to about $567,000, from 7,531 memecoins launched. This figure outpaced Pump.fun’s revenue of 2,575 SOL, valued at over $368,000, from 6,941 tokens.

With SunPump’s latest success, Justin Sun has been in the spotlight. In a recent discussion on the Crypto Banter YouTube channel, Sun said he would assess meme coins’ genuine social engagement by verifying whether the likes were authentic or inflated. 

He planned to evaluate the contents’ influence and credibility and determine whether people believed them. He also intended to review the founders, their material, and the memes and videos they produced to establish whether the video and social engagement were legitimate before committing to any meme coin.

Meme coins are increasingly community-centric. However, the growing demand and public attention have come with their fair share of risks, including heightened rug pulls and scams, which have affected overall trust levels in the crypto industry.