What You Need to Know About Meme Coins: Three Steps to Buy CHIIKAWA Meme Coin

Recently, the GYIKAWA meme coin has become popular across the web. The first online player to mention this coin, 0x515151, received over 170,000 views on their post. For those unfamiliar with cryptocurrencies, this article will address your doubts one by one, sharing things you should pay attention to and providing a complete tutorial. All information in this article is for reference purposes only and does not constitute any personal or institutional opinions or judgments, nor does it constitute any investment advice.

What is a Meme Coin? Consensus Generates Value

A meme coin is a unique gameplay in the world of cryptocurrencies. The permissionless and decentralized nature of blockchain allows anyone to issue assets on the chain. However, just because assets are issued does not mean they hold value. Generally, we believe that their value comes from consensus. While value based on consensus may sound like a bubble to some, just like gold does not have as many practical uses, its value is recognized by the masses, which is also a form of consensus. For example, on the Solana blockchain, the mechanism of the coin issuance platform pump.fun is that it will only list on the decentralized exchange Raydium when its token market cap reaches $69,000.

Although many still do not recognize meme coins because they serve no real purpose, numbers speak louder. DOGE, Elon Musk's favorite meme coin, has a market cap of up to $16.4 billion. Tesla even accepted DOGE as a payment method in the past, despite being mostly speculative. However, the market has proven the power of consensus with real money.

Precautions Before Dealing with Meme Coins: Essentially Still PvP

With platforms like pump.fun thriving and the performance of many public chains improving, transactions in meme coins have been hotter than ever this year. However, reality can be harsh. In August, we reported that since its launch, pump.fun has generated around 200 tokens per day, totaling over 20,000 tokens, but only 1.4% of them have reached the $69,000 market cap mentioned earlier. This success rate is lower than that of startups, and due to the low market cap, extreme price fluctuations are common.

With such a low success rate, who is making money? These tokens with low market caps, high chances of becoming worthless, and lack of community management are further categorized as "Tu Dog" coins. Whether it's a managed meme coin or a "Tu Dog" coin, essentially, it's a PvP battle to see who can position themselves at the lowest point and withdraw liquidity when the hype is at its peak. So, is their profit model speculative? Ponzi scheme? I believe it is, but that doesn't stop some savvy individuals from making money. However, over 90% of people lose money here, with only 3% making over $1,000 in profit.

Venture capitalist Adam Cochran: "The meme craze is coming to an end" Data reveals pump.fun's token issuance success rate is only 1.4%

But meme coins are not just a bunch of anonymous individuals cutting each other off; many celebrities and intellectual properties (IPs) also take the opportunity to create meme coins related to themselves. For example, rapper Iggy Azalea's Mother token has a market cap exceeding $80 million. If you don't care about making a profit and just want a keepsake, I personally think it's worth participating because blockchain technology ensures that the records of these assets you hold are immutable, allowing you to forever own your "Giyi Kawawa."

How to Trade Meme Coins: Three Steps to Bring Your Giyi Kawawa, Usachi, and Xiao Ba Home

Next, let's talk about how to trade meme coins since many meme coins are not listed on centralized exchanges like Binance or OKEx, most operations are conducted on the blockchain. Firstly, it's important to understand that on the blockchain, each wallet has a unique alphanumeric address, and each token also has its unique address.

Using the Giyi Kawawa series as an example, all based on the Solana chain:

CHIIKAWA Giyi Kawawa
DHoadXCbf6TcadkcMGJ8kFRdDa2sXPQ1KrgodUDRpump

USAGI Usachi
3QiXih8yiduq6ESbVoLeBrNo4TsLBESpyMvbQxo67WXB

HACHIWARE Xiao Ba
8N97L7hCPLasauFJMJpNEcuVgc9G3PNgaQwekGmypump

What you need to do first is purchase some Solana, but you don't need to buy a lot if it's just for commemorative purposes. You can buy Solana with TWD on an exchange registered with the VASP and with anti-money laundering declarations in Taiwan. Alternatively, you can exchange TWD for stablecoins in a TWD exchange and then transfer to an exchange with better liquidity. Remember that exchanges registered with VASP and have anti-money laundering measures provide more security, so do not trust unknown currency dealers online, as you may end up with illicit funds or fall victim to scams.

Next, using the Phantom wallet as an example, download the Phantom wallet from Google Play or App Store. Create a wallet and set a password specific to this device. You will then be shown a 12-word recovery phrase; make sure to write it down in order on a notebook. In the world of blockchain, ownership of an address is determined by who holds this recovery phrase. For security reasons, it is not recommended to record the recovery phrase through screenshots or copy-pasting it online.

After downloading, open Phantom and click on "Receive," then copy the Solana address. This address represents your account. Proceed to the exchange and click on "Withdraw," select Solana, paste the address you copied earlier, and be cautious not to buy too much. After the withdrawal is completed, click on the token swap page in Phantom, select Solana at the top, paste the token address below. For example, for Giyi Kawawa, copy and paste this address: DHoadXCbf6TcadkcMGJ8kFRdDa2sXPQ1KrgodUDRpump.

If the transaction fails, you can adjust the slippage settings by clicking on the top right corner. During the order review, you can see the tokens you will pay and receive upon completing the transaction. With that, the whole transaction is completed. But before you leave, there are some other things you should know about meme coins.

How to Find the Market Makers of Meme Coins? Experts use NEIROETH to analyze on-chain data to uncover the masterminds behind the scenes

What You Should Know About Meme Coins:

Many meme coin traders will use trading bots, which allow for automated limit buying, profit-taking, and more. While most bots claim to be non-custodial wallets, meaning only the user knows the wallet recovery phrase, private key, or follow smart money, most bots have not undergone audits, so these claims should be taken with caution. Many people promote bot trading not only for its convenience but also for the potential commission earned. Here, I won't judge right or wrong, only reveal the interests involved.

However, we can still use these tools to assist in trading. For example, the Taiwan-based team developed CashCash BOT, which allows you to check relevant information about a token by entering its address.

You can visit websites like Dex Screener, GMGN, and DEXX to view token charts and information. Simply paste the token address to look up the information. Many people decide to enter based on trading volume or the movements of whales. However, these can be easily manipulated. Recently, there have been reports focusing on FBI luring out market-making bots that fake billions of dollars in trading volume, with some companies having partnerships with trending meme coins.

Neiro market maker caught by the US, exposing collaboration with several CEXs and TON game tokens

FBI exposes market makers! Falsified trading volume reaches billions in a single day, selling services to cut losses

But can owning Giyi Kawawa lead to wealth? It's not that simple; otherwise, I would have taken out a loan to invest. Some traders believe that this trend has peaked, mainly because these branded tokens cannot be listed on centralized exchanges. Once again, remember that meme coins have low market values and high volatility, so do not get carried away.

Lastly, the most important aspect is security. If you're not careful, hackers can take away your investment before it even doubles. In computer science, there's a term called a honeypot trap, which on the blockchain is often used to lure victims with seemingly valuable tokens, then exploit vulnerabilities in smart contracts to steal control of accounts.

There's also a term called the "Pixiu Plate," which in simple terms means a smart contract flaw that allows buying but not selling. Therefore, it's common practice to use tools to detect honeypots, Pixiu Plates, or check if the token's creator has renounced minting rights before making a purchase. Remember, collecting meme coins for fun is one thing, but be cautious and stay alert to security issues.

Be cautious with collecting meme coins! Be wary of getting hacked before doubling your investment; security experts: meme coin websites often have security issues