Andrew Kang, crypto trader and co-founder of crypto-focused venture capital firm Mechanism Capital, believes that meme coins will outperform every other digital asset in this bull cycle because the tokens are pure and upfront speculative vehicles.
In a Sunday tweet, Kang stated that the crypto market might see Ether (ETH) soar by 50% from its current price, but meme coins will witness a 5-100x increase in value. This surge will introduce a generation of new money meme coin elites like the whales and old guards created through Bitcoin (BTC), ETH, and Solana (SOL).
Meme Coins to Outperform Everything Else
Kang likened the mem ecoin ecosystem to a Skill-based Global Lottery Platform where players choose which brands to purchase tickets from. However, the payouts and odds are different, hence the need for the skills.
Players who win jackpots do not do so by pure luck but skill and ability. This causes everyone to believe they can find the next winner.
“And the more people that they get to buy the same tickets at them, the more likely they and their friends win – that’s the best feeling – winning together. It’s a mullti player money game with virality built in,” Kang stated.
Revealing that the traditional global lottery industry generated roughly $300 billion in sales in 2020 with half of the United States as players, the trader envisioned the valuation of the meme coin space if a capital injection of a similar scale were to flow into them.
“We are going to reach some serious levels of mental retardation for meme coins this cycle,” he said.
The Real Pump
The Mechanism Capital co-founder further explained that the last bull run was the test pump for meme coins, just like Bitcoin’s test run from $100 to $1,000. However, this bull cycle will see the tokens get a real pump as the last cycle proved their product market fit, increasing global acceptance and how they changed lives.
According to Kang, meme coins will outperform other crypto assets by a wide margin because the crypto masses will not care about fancy new technologies that give throughput benefits, and they will not fall for the 10,000th decentralized finance (DeFi) farm, which retail traders have deemed “self-referential ponzi like house of cards.”
Meanwhile, Kang thinks overweight DeFi and layer-1 tokens are at risk of massive underperformance in this bull cycle.
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