For investors looking for outsized gains relative to the overall market, moving out on the risk curve is usually a required activity. Meme coins are cryptocurrencies generally defined as tokens tied to projects with little to no utility, outside their enthusiastic communities. With little to go on other than hype and excitement from those involved in the project, these tokens see price swings tied to speculation, leveraged derivatives bets and momentum traders from time to time.
Of course, my view remains bearish on this group as a whole, and I’m skeptical of the entire space. But I’m also realistic. Some of these meme coins can provide lottery ticket-like gains — that’s why they’re so popular among certain investors.
Like buying a lottery ticket, investors are best “investing” money in these meme tokens they would be fine with lighting on fire. Most such projects will eventually go to zero, but a few may deliver moon-shot returns over the next year.
For those willing to speculate and can handle the volatility, here are three possible meme coins set to shoot to the moon.
Dogwifhat (WIF-USD)
Perhaps the “coolest kid” on the meme token block is dogwifhat (WIF-USD). As its name suggests, dogwifhat is a meme token representing a dog with a hat. It’s really that simple, and that appears to be all it took to take this endearing crypto with a compelling logo to current levels.
The team behind dogwifhat focused their efforts increasingly on marketing, to spread the word about their community. Supporters have crowdfunded enough funds to have the project’s iconic meme logo displayed on the Las Vegas Sphere. The venue, with a capacity exceeding 18,600, offers a massive display panel for rent at $450,000 daily.
The token has shown its ability to post massive surges in short amounts of time, perfect for speculators and those looking for quick wins. In recent days, surges of 20% in a matter of a few hours have become commonplace.
At a market capitalization of more than $3 billion, WIF is now a top-50 cryptocurrency that’s only gaining more steam. For those looking for momentum, this token certainly has it right now.
Pepe Coin (PEPE-USD)
Meme coins remain favored among both retail investors and smart-money traders. Pepe’s (PEPE-USD) price surged 11% to $0.0000084 on Tuesday, reclaiming a market capitalization of $3.5 billion, ranking it as the 3rd largest meme coin. Analysts anticipate further gains, with Andrew Griffiths noting a bullish breakout potentially leading Pepe toward its all-time high.
Pepe’s technical indicators suggest a bullish trend will likely continue, as strong demand propels this token higher. The token’s eventual listing on Coinbase (NASDAQ:COIN) could lead to the next leg higher, at least according to the pundits who follow this token.
Listing announcements and other marketing-related news is what most meme tokens thrive on, at least early on. Pepe has done a good job of creating a supportive community, but we’ll have to see if more such announcements are on the horizon. If speculators time it right, and a surge of news leads to waves of buying activity, PEPE is certainly a token with the ability to go much, much higher in no time at all.
Bonk (BONK-USD)
Bonk (BONK-USD), a Solana (SOL-USD)-based dog-themed coin (and the inaugural meme token on this network), has garnered attention for its thematic appeal, strategic approach and visionary outlook. Solana-based meme tokens are now proliferating but Bonk remains among the top options traders continue to focus on due to its current standing in the meme token rankings.
Notable volume increases have allowed Bonk to take off, with a record high 187,000 daily trades noted in early March. However, trading volumes have been volatile, with anywhere from 20,000 to 200,000 trades taking place in a given day. Daily trader engagement may be peaking — a risk to speculators at current levels. But if a new peak is seen in the coming weeks, it could be game-on for this investor favorite.
On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
