Crypto | Exploring the MemeFi Reflexive Tokens Narrative...
Crypto tends to move from one narrative to another and right now it seems to be all about Reflexive MemeFi tokens who come with a "small" tax which is used to benefit the token and the holders in some way...
*** WARNING! I'm aways late...
The pattern for me is pretty much always the same, I follow what is happening on the crypto market see a narrative that takes off and where everyone seemingly seems to get rich, I wait a couple weeks and eventually I want to try it out and Fomo in to have myself get dumped on by the ones who were early to lose limited funds which I was willing to lose in the first place.
MemeFi Reflecive Tokens
Enter Memecoins v2.0: The new take on this concept now is to create a memecoin and pair it with something else like a tokenized stock or another crypto coin and take a tax which most of the time gets paid to tokenholders. The first one was Marscoin on BNB which is paired with Spacex Stock and has a 3% buy & Sell Tax (also counts for transfers from what I know) which is used to pay out Spacex stock to tokenholders.
That launch was almost 2 months ago and marscoin has a listing on Binance with a marketcap of 130 Million at the moment.
Some time later, Robinhood Chain which also has tokenized stocks became the hot thing and the platform PONS which facilitates creating these types of coins went from zero to a 500 Million valuation as there were a lot of fees that were used to buy back & burn the token (31.64% of the supply has been burned)
Things have been cooling down a bit though also because the attention gets spread. An equivalent of Pons was created on Solana called STONK which also made a lot of people rich in a short amount of time.
Some of the examples are Marscoin on BNB (130M Market Cap), AI (Artificial Inu) Paired with Nvidia on Robinhood chain (230M Market Cap), & Zcat Paired with Zcash on Solana (70M Market Cap)
The Rise of the FOMO App
Recently (in the last few days) a new platform called Paid was created which has another twist to the same concept. Coins are created with a buy & sell tax and the coin is linked to a twitter account which all the fees are sent to. The idea is to create coins and link famous people to them which then will start earning money from trading fees which gives them an incentive to mention the coin or start building something around it.
This concept created the e/acc coin which is linked to the https://x.com/beffjezos X Account and made some people a lot of money as it went from nothing to 28 Million market cap in a day just to come crashing back down.
Pretty much right now everything is moving super fast and every day there is something new happening whith in reality a handful of people earnings a lot of money while the majority ends up getting rugged most of the time.
My MemeFi Journey
My personal style is one where I prefer to buy and hold while earning some dividends along the way (GambleFi like Sportbet.one) or get some good utility like Hive while keeping the most in something like Bitcoin which I haven't touched since 2017. I don't really enjoy trading and being busy with it 24/7 but at the same time I do take some smaller (or bigger) gambles at times feeling some greed hoping to hit a major jackpot.
It was a month ago when I first heard about the MemeFi narrative which kind of instantly clicked for me as I always like coins that have possible upside price potential linked to possible growing dividends. I felt quite lucky to see a project early from Kevin Svenson named StonkATM and I wanted to try out the buzz around Robinhoodchain. Initially, it paid really good dividends in different tokenized stocks which made me double (triple) down on it understanding and being fine with the risks. Unfortunately there turned out to be some fatal bug in the contract which allowed people to drain the ETH funds that were being build up which killed it early as there is no point in getting into a coin or for anyone to promote a coin with a bug like this.
I also tipped my toe in Zcat which dropped me some zcash but I had paper hands (luckily) and I waited for a pump to dump my bag at a 130M market cap (now 70M). I also tested out The Index buying 10001 coins at a 30 Million market cap which is supposed to the the threshold to get stocks dropped but holding it for over a week I never received any. So on a pump I managed to sell my bag also at a small profit with no intention to get back in.
The one I looked for was a coin which pays dividends in BTC which got me to b-money on Binance Chain initially buying a tiny bit to test at 0.004782$ to add to my position at 0.003998$ and to double down at 0.003354$. I did sell half of my bag into the pump at 0.006$ and using that usdc to buy back at around 0.004$. The price continued to do down a bit more though and I doubled down yesterday at 0.0025$ hoping it catches some attention again.
I like the idea behind it, the top holders are holding strong and importantly it only has a 1% buy & Sell tax which makes it reasonable for traders. Since it's a BNB native coin there is a small chance it gets picked up by Binance for a listing and the payouts are actually working as I received 4.24$ so far mosly holding just 100k-200k b-money.
Here are some daily metrics from https://x.com/Buffaloofnorth
At this point, I'm willing to just sit back and wait it out in worst case seeing the volume and the price completely die down. In case it would pump I'm looking to slowly take out my initial investment (I put around 1.4k into it and hold 513k bmoney)
Where This All Goes...
When it comes down to these coins, I see a major contradiction in that holders want to see good returns while the volume needed for this is getting cut down by the big buy & sell tax which makes it so that traders need to overcome a 6% fee on each trade buying and selling it back. Once these coins go way high in valuation, the earnings simply won't be able to hold up. There is also a treshold before you can get paid out which increases making it harder to reach for small retail investors who eventually will come into the Fomo app since they only see all the big winner stories.
So basically it's a game of getting in very early at small market caps and seeing 9 out of 10 getting rullged with hopefully 1 winner doing a crazy x and paying out a lot of fee money. I'm not willing to play that game so I just will keep following the market while taking 1 or 2 positions as a bit of a lottery ticket that is more likely to lose. I'm quite sure that all of this will end up like the previous flood of ICO's, memecoins, NFTs, Play2Earn, Defi Farming, ... where it's possible to earn some money along the way if you are really locked into it and are able to sell in time.
Conclusion
It's amazing to see how Crypto keeps inventing new narratives and the MemeFi Reflexive tokens at the moment are certainly the hot thing in town. My main aim is not to get further burned of them while putting myself also in a position where I could get lucky. I might give some more updates along the way how things are going and I might deposit some funds to have fun with on the FOMO App. Otherwise, my focus remains more on fundamentally sound projects like GambleFi platforms.