- Individuals to launch a memecoin must take note of several necessary actions before the project launch.
- The memecoin sector has shown a surge in new project launches in the past months.
The revolutionary introduction of Decentralization has equipped creators with enhanced tools for development and revenue generation. In recent times, numerous enthusiasts have turned to exploring memecoins to unleash their creative skills. However, DeFi has expanded beyond utility tokens and has become inclusive through memecoins, allowing any creative individual to contribute to the sector.
The past few months have seen widespread incorporation of memecoins within the cryptocurrency sector. Let’s unravel the mystery behind this comical digital asset by understanding how to launch memecoins, and the facets surrounding it.
What was the May Memecoin Mania?
While memecoins have always been on the market, in May 2024 they took over the crypto spotlight. During that time, multitudes of crypto community members released meme tokens and the market saw huge inflows in new tokens.
Additionally, prominent celebrities began launching their own meme tokens. Initiated by popular reality TV personality, Caitlyn Jenner, the memecoin frenzy saw endorsements from popular singers and celebrities across different platforms.
Notably, Caitlyn Jenner launched her memecoin JENNER on May 28. Following her, other celebrities began shelling memecoins. Prominent instances include Iggy Azalea’s MOTHER token and Andrew Tate’s DADDY token dispute. Apart from this, heavyweight champion Hulk Hogan was also involved in the memecoin shellings.
Most of the aforementioned celebrities proceeded to launch their memecoins on Solana’s pump.fun platform. The platform enabled individuals to release their tokens in a simplified manner. However, the May month also saw several rug-pull scams with celebrity tokens. This caused community members to abstain from celebrity-launched memecoins as they suspected scams associated with the tokens.
Furthermore, a new category of tokens called the PolitiFi memecoins have also sprung up reflecting the current US political landscape. PolitiFi memecoins have inspired ways to represent societal circumstances within the cryptocurrency sector which can be expected for implementation in the coming months.
What is the Memecoin Launch Checklist?
A memecoin, similar to any creation, first begins with an idea. When launching your token, it requires a concept that stands as core to the memecoin project. Following this, the individual can begin to design their token, specifying and customizing it according to the concept. The memecoin concept and design must be optimized in order to make it appealing.
Secondly, the creator needs to choose a particular blockchain on which you plan to launch your token. Several blockchains, presently, provide platforms acting as memecoin launchpads. Ethereum, the aforementioned Solana, Polygon, Binance Smartchain, and Tron Network are some of them.
The Operational Checklist – Smart Contracts, White Paper & Tokenomics
Every memecoin requires a smart contract for deployment and transactions within the blockchain. While other steps in launching a memecoin may not require full-fledged coding, a smart contract will need to be coded. In such a case, individuals can employ blockchain developers to prepare a smart contract and get it audited.
Moreover, when you launch a memecoin or any token, it is customary to write a White paper. The White Paper is a documentation outlining all the important facets of your memecoin project. When a project includes a white paper it communicates authenticity and makes it more professional.
Thirdly, and importantly, Token Distribution or Tokenomics – a memecoin or any token’s crucial step before launch, is determining its tokenomics. Tokenomics of a memecoin informs the crypto community about the project’s token allocation. Additionally, the distribution entails your marketing strategies and draws market attention to your memecoin project.
Enhance your Memecoin with a Burn Mechanism
A burn mechanism destroys tokens permanently from supply thus maintaining a limited supply. This ensures a limited token supply thus creating scarcity in the market which helps maintain price levels. One of the leading Dog-based memecoin Shiba Inu (SHIB), is known for its burn mechanism.
Additionally, other memecoins such as PEPE and BONK also have a burn mechanism instilled to alter the supply of tokens. On the other hand, memecoins also have a minting option where new tokens can be minted to be added to circulation.
How Do You Sell Your Memecoin?
A memecoin launch isn’t limited to designing and operational aspects. A key facet of a memecoin launch is marketing and listing the token on exchanges. In order for your token to succeed in the crypto market, you must grab investors’ attention. This requires an optimized marketing strategy that begins with the token idea itself.
Additionally, when designing your token it is necessary to keep in line with the current trends that will garner attention. For instance, DOGE, when it was first launched, was inspired by the trending Kabuso dog and saw massive interest from the crypto community.
Secondly, a community is a crucial element for any memecoin. When deploying your token, initiating and creating an active community will play a prominent role in the success of your memecoin. Additionally, when your memecoin includes a community it will aid in further project expansions both in terms of blockchain and token utility.
Furthermore, a second facet within marketing is getting your coin listed in different crypto exchanges. Every exchange has a particular set of regulations that the cryptocurrency must adhere to for being listed. Some of the prominent crypto exchanges to keep in mind include – Binance, Raydium, KuCoin, CoinBase, and Uniswap.
Once listed the token goes live for investors to begin trading, officially launching your memecoin on the cryptocurrency market.
Challenges that You Might Face When Launching a Memecoin
During the May memecoin frenzy, as aforementioned, several rug-pull scams occurred. This has caused a distrust among community members towards newly launched tokens. This has been one of the major challenges that memecoin creators have faced in recent times.
Additionally, another crucial issue might be the memecoin sector having lost its spotlight over the past two months. Towards the end of June, the community began speculating whether the memecoin season had come to an end. This was due to the reduction in performance as suggested by Dune Analytics data in May and June.
Other challenges might be encountered in technical fronts and garnering attention from the community. Creators often tend to resolve these challenges by adopting required strategies at the time of the problem.
Security & Regulatory Awareness
Finally, one important aspect that you need to keep in mind is your memecoin’s security. Several memecoin wallets and custody hacks have been reported in the past months. Thus when creating a token, the individual must formulate contingency plans and enhance security measures.
Furthermore, once you create a token you must hold a strong knowledge about regulatory compliance to avoid any scrutiny from regional and national regulatory bodies such as the US SEC. Moreover, compliance with regulations also adds to the authenticity of the memecoin project.
Conclusion
In the present cryptocurrency landscape memecoins hold a significant position as digital assets. Apart from witnessing an influx of investors, it has also seen a surge in individuals launching their tokens. Thus, launching a memecoin holds immense scope in current circumstances amid an expanding and diversifying crypto ecosystem.
Disclaimer: The above article curated is for informational and educational purposes only, and is not to be construed as investment advice. TheNewsCrypto advises readers to conduct their own research before investing or making any decisions.
