Solana & memecoins
What is a meme coin?
A meme coin is a token with no cash flow, no product and no claim on anything - its price is a pure function of how many people are paying attention to it right now. That is not a criticism, it is the mechanism, and it explains everything about how these tokens trade: they move violently, they move on narrative rather than news, and the overwhelming majority end near zero.
Why they behave the way they do
A token with revenue has a floor somebody can argue for. A meme coin has none, so there is no price at which it becomes objectively cheap. The consequence is that support levels mean less than they do elsewhere, and 'it has already fallen 80 percent' is not information.
The typical life cycle
- Launch on a launchpad, where early buyers accumulate along a bonding curve.
- Graduation to a normal liquidity pool once enough has been raised, which is when most traders can first enter meaningfully.
- A distribution phase, where attention peaks and early holders sell into it.
- Decay. Volume falls, liquidity is withdrawn, and the chart stops mattering.
Most tokens never finish step one. Of those that graduate, the majority are worth close to nothing within weeks. Any strategy here has to assume that as the base case rather than the bad case.
What separates the survivors
- Holder distribution. One wallet holding 30 percent of supply is a decision waiting to be made against you.
- Liquidity, and whether it is locked or burned. Withdrawable liquidity is an exit for the deployer, not for you.
- Genuine distribution of attention rather than one coordinated push.
- Time. A token that is still traded a month later has passed a test almost none of them pass.
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