Crypto Traders Discuss Why Memecoins Have Been 2024s Most Profitable Narrative

Journalist and host Laura Shin interviewed crypto traders Ansem and Kel, known on X as blkoiz06 and Kelxyz, for her Unchained Podcast.  They discussed why memecoins had become the most profitable crypto trade this cycle and what the future might hold for the sector. Related Reading: Is The PEPE Dream Over? Dissecting The Factors Behind The Meme Coins Price Tumble Is There Value In A Memecoin? To begin with, Shin asked the traders whether there was substance in tokens based on memes, as it has been a big argument against them. To Ansem, people think too hard about the value of memecoins as projects. Moreover, he considers theres no real gain in comparing whether other altcoins deserve or have more value than meme-based tokens. Why Memecoins Have Been 2024s Most Profitable Crypto Trade: Ansem and Kelxyz Dive into the wild world of memecoins with @blknoiz06 and @kelxyz_! Discover how Ansem and Kel trade memecoins, the risks and rewards, and their predictions for the future of memecoins Plus, pic.twitter.com/QovysNwAGP — Laura Shin (@laurashin) May 7, 2024 Ansem further explains that the crypto community is very internet-centered, with its members being internet people since cryptos origin.  As a result, the community is knowledgeable about the financial aspect but is also knees-deep in online culture. The trader believes theres value in memes and culture on the internet. People in the community are “financializing” meme virality and realizing that its a possibility with crypto. Shin jokingly added that if this trend had been popular in 2016, the Drake meme creator would be a bazillionaire by now. The host seemingly referenced the still-popular meme that originated from Drakes Hotline Bling music video. Agreeing with this argument, Kel asserted that, over the last 20 years, many trillion-dollar businesses have capitalized attention as their winning trade businesses idea. All these trillion-dollar businesses () facilitate directing attention and the way theyve done that successfully has been, oftentimes, via memes. One could even make the argument that memes are the core engine of the entire Internet. The Risks And Criticisms Of Memecoin Mania To understand why memecoins have become the narrative of Q1 2024, the traders discussed the risks and arguments against the tokens. One of the biggest criticisms of memecoins is their high-risk nature. Because they are much smaller and not backed by institutional money, they can be riskier and more easily go to 0. Despite this, traders consider that many investors, especially new ones, find memecoins attractive because they have the potential to give 100x to 1000x returns. Moreover, losing money is not exclusive to memecoins. To illustrate his point, Ansem compared the people who bought Doges top to those who bought Bitcoin at $69,000 last cycle before it fell to $15,000. To the trader, how much a token can drop and investors buying the top is part of the general market dynamics instead of a characteristic of memecoins. However, he clarifies that there is better criticism of the sector. Ansem considers the shady behavior behind the projects teams a crucial issue to address. To him, a framework could prevent creators from controlling a large supply of the tokens and dumping them immediately after launch or rug-pulling investors. In the replies to the podcast, a user argued that the reason behind the recent frenzy is driven by the Financial nihilism and the lack of liquidity that the youth has. Adding that investors are Buying a mere coin is like a lottery ticket. It is worth mentioning that trading memecoins like lottery tickets is not an unseen phenomenon. On-chain research platform Lookonchain recently reported a trader seeing 4,906x gains in one day by precisely doing that. This guy won a 4,906x lottery ticket today, so lucky! He trades MEMEcoins like buying a lottery ticket, investing 0.1/0.2/0.3 $SOL for each #MEMEcoins. He invested 0.2 $SOL($30) in $AGORA today, then sold 2M $AGORA for $100K, with 959K $MILK(worth $47K) left. So he turned $30 pic.twitter.com/fnJDQnavfI — Lookonchain (@lookonchain) May 7, 2024 Per the report, the trader invests 0.1/0.2/0.3 SOL for each memecoin. Yesterday, the investor turned $30 into $147,000 by turning 0.2 SOL into 2 million AGORA. Whats In Memecoins Future? When asked what is in store for the sector, both traders concurred that memecoins are not going away. To Ansem, the community behavior towards memecoins is like that of NFTs last cycle. With NFTs, investors felt like they were part of a community and were working towards developing it. The shared experience of relating is another crucial factor in the craze of meme-based tokens, as seen in communities of tokens like Dogwifhat (WIF). Adding to that idea, Kel asserted that all memes will become coins in the next ten years.  Moreover, the trader wouldnt be surprised if the creation of a meme was natively financialized by then, as the trend of financialization of things continues to increase. Ultimately, he believes the sector is in the early stages of this trend as the community tries to capture the moment of a meme and capitalize on it now that crypto has made financialization trivial from a tech perspective. Related Reading: Dogecoin on the Rise: Over 5 Million Wallets Now Profitable As Potential Surge Looms Total crpto market is at $2.22 trillion on the weekly chart. Source: TOTAL on TradingView Featured Image from Unsplash.com, Chart from TradingView.com

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Fetch.AI Soars 14.5% As AI Tokens Surge, Can FET Reach $4?

The crypto market is 5.1% up today, with a total market capitalization of $2.3 trillion. The recent pump has propelled different sectors, with memecoins being 9% up and Artificial Intelligence (AI) tokens increasing 11.2% in the last 24 hours. Related Reading: Crypto Analyst Shares Top AI Altcoin Investments This Month Fetch.AI (FET) is at the forefront of the AI sector with its remarkable 14.5% increase in the past day. Some analysts foresee a bullish breakout for the token soon. Are AI Tokens Taking The Lead? As reported by NewsBTC, many market experts consider Artificial intelligence tokens a contender for the cycles biggest narrative in round 2. Alex Wacy said the artificial intelligence industry is on the brink of a multi-trillion-dollar boom due to the increasing interest over the last year. As a result, the analyst considers the sector could create a market valued in the trillions, reaching $2 trillion by 2030. This week, AI tokens have performed strongly. Altcoin Sherpa pointed out that the sector is looking decent overall, with tokens like Arweave (AR), Ocean Protocol (OCEAN), and Fetch.ai performing the best. Renowned traded Daan Crypto considers the AI sector to be bouncing the strongest on this new market move, while memecoins seem to be the weakest. The trader shared his thoughts on Fetch.AIs recent performance. Daan highlighted the tokens attempt to break above the diagonal trendline. Per the chart, FET is testing the diagonal resistance, with the $2.35 mark being the first resistance level to reclaim. A breakout above this level could be a good start to a further trend change. Moreover, the token broke above the 4H 200MA/EMA already. Per the trader, FET would need to test the $2.5 mark and remain above the $2.35 price range to break the trend and head higher over the next couple of weeks. Similarly, crypto trader Scient considers the token consolidating inside a one-day ascending bullish triangle. His chart highlights the $2.12 mark as support for the diagonal trendline. He forecasted a deviation below the trendline towards 1D 100EMA before reclaiming the $2.12 price range and moving back inside the triangle. If a retest and confirmation of the trendline reclaim occurred, the trader suggested he would long it. Analysts Forecast $4 For FET Crypto analyst World of Charts identified a textbook bullish pennant pattern on FETs chart. The analyst expects an upside breakout soon, potentially leading to a 2x bullish wave. If the breakout is successful, the tokens price could move above the $4 price range. $Fet Formed Text Book Bullish Pennant Expecting Upside Breakout Soon Expecting 2x Bullish Wave Incase Of Successful Breakout #Crypto #Fet #Fetchai pic.twitter.com/Y3c0pqNFgN — World Of Charts (@WorldOfCharts1) May 15, 2024 Moreover, CryptoBoss seems to concur with this forecast. The trader shared a similar chart, signaling a possible breakout that could drive the token to double its price. In the post, he stated, $FET 4$ exe loading… Related Reading: By The Numbers: Over 1 Million New Crypto Tokens Launched Since April In the past 24 hours, the token has surged an impressive 14.5%, going from $2.04 to hover between the $2.3-$2.32 price range. This increase represents 7.5% and 13.2% in the weekly and monthly timeframes. Similarly, FET has seen a rise in market activity. Its daily trading volume increased by 102%, with $354.2 million traded on the last day. Featured Image from Pexels.com, Chart from TradingView.com

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Biden Angers Crypto Traders with Wealthy Tax Cheat Comparison

President Joe Biden has placed the crypto industry at the center of a bipartisan conflict for the second time in as many weeks. 

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Biden Says He Won’t Agree to Deal That ‘Protects Wealthy Tax Cheats and Crypto Traders’ as US Default Looms

U.S. President Joe Biden says he will not agree to “a deal that protects wealthy tax cheats and crypto traders while putting food assistance at risk” as the U.S. faces the risk of defaulting on its debt obligations. “I’ve done my part,” Biden stressed, adding that it is now time for the Republicans to move [...]

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Biden's Budget Proposal Includes Crackdown on Crypto Wash Sales and Doubling of Capital Gains Tax for Certain Investors

U.S. President Joe Biden's fiscal 2024 budget plan proposes a crackdown on crypto wash sales and a doubling of the capital gains tax for certain investors, which could raise $24 billion. The proposed changes to crypto tax treatment aim to reduce the deficit by nearly $3 trillion over the next decade. The budget proposal seeks to eliminate the tax-loss harvesting strategy used by crypto traders, which allows them to sell assets at a loss for tax purposes before immediately repurchasing them. The proposal also aims to raise the capital gains tax rate for investors making at least $1 million to 39.6%. (Read More)

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Bitcoin’s Break Above $20,000 Sees Market Liquidations Cross $1 Billion

Tuesday has proven to be a good day for bitcoin and the crypto market in its entirety as gains have been the order of the day. Bitcoin has finally been able to clear the $20,000 territory even when indicators pointed towards the more sluggish movement for the digital asset. As expected, there have been ripple events from the gains in the market. Liquidations are now the order of the day and short traders are getting the ‘short’ end of the stick. Crypto Liquidations Cross $1 Billion The crypto market has now recorded its worse liquidation trend so far in 2022. Bitcoin’s recovery above $20,000 was swift and the liquidations were just as fast. The result of this is more than $1 billion being liquidated across the crypto market in the last 24 hours. Given the recovery, short traders have suffered the worst of it. Data from Coinglass shows that over 87% of all liquidations recorded in the past day have been from short traders. This means that short traders have lost more than $700 million in a single day. Related Reading: Total LUNC Burned Crosses 24 Billion, But Is It Enough? Amid this, FTX exchange recorded the largest liquidation event in history with more than $700 million liquidated on the crypto exchange. This puts the majority of the market liquidations on FTX (74.7%) with all other exchanges making up about 25% of the remaining figure. 24-hour liquidations cross $1.1 billion | Source: Coinglass Approximately 156,000 traders were caught in the crossfire of this bloody trading day. The largest single liquidation was recorded on the Okex – ETH-USDT-SWAP pair for a total of $3.05 million. Total market liquidation values now sit at $1.12 billion at the time of this writing. Bitcoin Gearing Up For More Bitcoin has landed in the mid-$20,000s after the current rally but the digital asset does not seem to be done yet. The recovery put it firmly above its 50-day moving average, which cements its short-term bull trend. Additionally, the correlation with the stock market remains high and bitcoin is bound to follow the performance of its largest counterpart. If the current positive sentiment across the financial market continues, then it is possible that BTC would test the $21,000 resistance before the close of the trading day on Wednesday. BTC price at $20,600 | Source: BTCUSD on TradingView.com High inflation rates across the world are also triggering investors’ move to bitcoin. Forecasts have put countries around the world at even higher inflation rates going into the end of the year, which could paint a bull picture for cryptocurrencies going forward. Related Reading: Crypto Market Drops To Extreme Fear As Bitcoin Struggles To Hold $19,000 BTC is currently trading at $20,600 at the time of this writing. It is up 6.98% in the last 24 hours and has a current market cap of 396 billion. It has also seen $61.7 billion in trading volume, a 136% increase in the last day. Featured image from ITPro Today, chart from TradingView.com Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…

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Hardware Wallets Sell Off As Crypto Heists Increase

DeFi protocols and other crypto traders are massively acquiring hardware wallets to deal with the wave of hacks.

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Cardano Boost to Over +12%, Traders Hungry for More

Cardano surge a 24-hour growth rate of +12%. Cardano fans hope to see ADA rocket high. Cardano remains to be ...

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XinFin Partners With Tradeteq to Tokenize Trade Finance Into NFT

Tokenized trade finance products will be available via XinFin – Tradeteq partnership. Accelerated Payments originated the first transaction on 20

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Trader Says, BTC Price Top Will Be a “Number You Can’t Comprehend”

Popular trader on Twitter says “BTC bottom is close but the top is likely a number you can’t comprehend.” In

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Binance Ends Derivatives Services To Australian Crypto Traders

Binance set to halt crypto futures and options following regulations in Australia. Existing Binance users have 90 days to close

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Strategic Exploit: Crypto Traders Harvested $3 Billion From Kimchi Premium?

South Koreas local media, Newsis, recently reported the case of certain crypto traders who had sent about $3 billion overseas in a bid to profit from the Kimichi Premium. Interestingly, the court found 14 out of 16 of these traders not guilty despite their alleged actions.  Related Reading: Bitcoin Bears Brewing: Analyst Predicts A Pullback Before Halving How This Group Of Crypto Traders Operated These crypto traders are said to have sent these sums of money through local banks under the guise of these transactions being foreign exchange remittances. However, this was allegedly not the case, as they would then use the funds to purchase virtual currencies abroad and send those crypto assets back to domestic exchanges, where they eventually offload them.  This was done to allegedly profit from the Kimichi Premium. This phenomenon occurs when crypto assets are more expensive in South Korea than overseas due to the country’s particular regulations. This has created an arbitrage opportunity that crypto traders have sought to exploit. Meanwhile, the Korean government has tried to prevent traders from doing so.  That is why the prosecution charged 16 people, including someone referred to as Mr. A in the news report, with violating the Specific Financial Information Act. Mr. A and others were accused of illegally transferring foreign currency worth 4.3 trillion won ($3 billion) overseas between April 2021 and August 2022 to exploit the Kimichi premium allegedly.  The prosecution believes these crypto traders made a market profit of as much as 210 billion won ($158 million). In their defense, the defendants argued against any wrongdoing since they werent precisely the ones facilitating the foreign exchange business but the bank. The traders argued they were platform users, not virtual asset business operators. The bank involved also tried to absolve itself from the case as it claimed it carried out the transaction based on the “false evidence” the defendants submitted.  Court Finds The Defendants Not Guilty The court agreed with most defendants arguments, acquitting 14 (including Mr. A) out of the 16 persons charged. A local Judge who ruled over the case opined that their actions didnt violate the objective of the Foreign Exchange Transactions Act and, therefore, could not be punished under that law.  The Judge added that there was “nothing to suggest that the defendants operated as virtual asset business operators.” If the reverse was the case, they could have been punished for not registering their business or making certain disclosures as required by the law.  Related Reading: Crypto Drama Unfolds: Ethereum Co-Founders 22,000 ETH Transfer Sparks Price Speculation Interestingly, Judge Park further distinguished the current case from a Supreme Court precedent as he noted that the highest court did not explicitly judge the issues in this case. The prosecution already submitted an appeal, dissatisfied with the courts ruling.  Chart from Tradingview

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Stablecoins Interest Spikes As Traders Look To Exit Market

Data shows there has been a large spike in interest around stablecoins recently, a sign that investors of Bitcoin and other assets may be looking to exit. Stablecoins Have Observed A Sharp Rise In Social Volume Recently According to data from the on-chain analytics firm Santiment, there has been a major uptick in the social volume of the stablecoins recently. The “social volume” refers to an indicator that measures the total number of social media text documents that are talking about a certain topic or term. The social media text documents here have been collected by Santiment and include a variety of sources like Reddit, Twitter, Telegram, and other internet forums. Something to note about the metric is that it only tells us about the unique number of such posts that are mentioning the given term at least once. This means that even if a thread includes several mentions of the topic, its contribution towards the social volume will still remain only one unit. The social volume can provide insight into the degree of attention any particular coin is getting on social media platforms. Whenever this indicator’s value goes up, it means that the general interest in the asset among investors is rising currently. Now, here is a chart that shows the 7-day change in the social volume for the various assets in the cryptocurrency sector (including the stablecoins): How the metric's value has changed for the different coins in the market during the past week | Source: Santiment on Twitter As displayed in the above graph, the social volume of a lot of the volatile assets has registered a negative 7-day change, implying that there is a lesser amount of discussion happening related to them right now as compared to a week ago. Related Reading: Bitcoin Tweets Surpass Dogecoin Despite Meme Coin Craze Some of the assets like Bitcoin have seen a positive 7-day change in the metric, but the increase has only been minuscule for them, implying that their social volume is relatively unchanged. Interestingly, while the volatile assets may have seen decreasing or sideways-moving social volumes, the stablecoins have seen a completely different trend with the metric; their social volumes have sharply surged in the past week. USD Coin (USDC), which is the stablecoin second only to Tether (USDT) in terms of market cap, has seen an extraordinary rise of more than 300% in terms of this metric. This suggests that discussions around the coin have increased by more than 300% during the past week. Tether itself has observed a positive 7-day change in the social volume of more than 30%, which, while much lesser than USDC’s, is still quite significant nonetheless. Related Reading: This Week In Bitcoin And Crypto: Key Dates That Will Impact Prices Generally, investors use stables whenever they want to escape the volatility associated with the other coins in the sector. So, since the interest around these tokens has surged recently while the volatile cryptocurrencies have been seeing a red period, it would appear that holders may once again be seeking the safety of this stable form of digital assets. BTC Price At the time of writing, Bitcoin is trading around $27,300, down 2% in the last week. Looks like BTC has seen some recovery | Source: BTCUSD on TradingView Featured image from iStock.com, charts from TradingView.com, Santiment.net

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ZachXBT claims there is an uptick in thieves targetting crypto traders offline 

Online platform GitHub has a list of at least 15 recorded incidents of in person crypto theft in the last year, around 17 in 2023, and 32 in 2021. 

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Traders bag millions as Trump team confirms launch of Solana memecoin

US President-elect Donald Trumps Solana-based memecoin, TRUMP, sparks a trading frenzy fueled by high-profile trades and notable whale activity.

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Bitget Unveils Martingale AI: The AI-Infused Trading Tool for Crypto Traders

On June 7, 2023, Bitget, a Seychelles-based platform for crypto derivatives and copy trading, announced the launch of Martingale AI, an AI-infused trading tool. The new feature enables novice crypto traders to utilize strategies developed by AI. Bitget’s Martingale AI: A New AI-Centric Tool for Crypto Traders Artificial intelligence (AI) has been a significant topic [...]

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