Illustration: Small Alpha
In 2021, we knew we could speculate on anything. via NFTsInvestors traded on Emojis, tweets, jpegs and farts. and in Mimi Queen MarketLots of people made a lot of money jokes inside. For beginnersA meme coin is a crypto asset based on a meme or online joke. Unlike other cryptocurrencies, which try to serve a real purpose, most meme coins are not really intended. Act Any thing. Instead, they are mostly vehicles for speculation, and their value is driven by hype. Meme coins generally start at a few cents or less but can quickly rise to hysterical levels, making them beloved by Robinhood rally. Here, a student turned cryptocurrency dealer in his mid-twenties shares his frantic journey through the casino meme and what he had to do. His first million.
I bought Bitcoin for the first time in 2019 in order to buy medicines. I put in $500 and forgot about it, and when I realized at the end of 2020, I had $2000. So I started putting my savings down little by little. I was doing really boring things, just buying coins and keeping them. Then, last August, Visa bought CryptoPunk, a very excellent NFT company, and I thought, Damn, maybe I should look at NFTs. I got lucky – I ended up with the rarest NFT coin, which was worth over $200,000 at its peak.
I was satisfied and decided to put all my crypto money into NFT, which by that time was around $75,000. Half of it was mine – it was basically all of my savings after I crossed my 401(k) limit. He was the other half of my father, and the plan was to split the profits with him. But two weeks later, midway through October, NFT prices fell. And the NFTs are kind of dead.
That’s when I decided to try meme coins. The meme coin is a cryptocurrency that has almost no value and does not offer anything interesting. It is just a currency, like Shiba Inu or dogecoin. Meme coins are basically just cultural currencies, and people trade them because they like memes. For example, there was a congressional hearing on cryptocurrency in December, and Representative Brad Sherman said something like, “Will Mongoose Kill Crypto?” Mongoose coin is not real – he made it. But people thought it was funny. And after about two hours, a coin called the Mongoose was released. Since they have no value, meme coins only pump (meaning the price goes up) as long as people are willing to buy them. Lots of people in crypto hate meme on principle: they think, This thing is stupid. Why is it worth 500 million dollars? But I’m not that perfect. I have no loyalty to cryptocurrency. If you want fast money go for meme coins, I’m in the market to make money.
When I was doing NFTs, I would spend 12-16 hours a day camping on Discord to make sure I didn’t miss a thing. I didn’t sleep much. But when I started making meme coins, it was much cooler. I followed a few meme-coin influencers on Twitter and turned on notifications for them. And recently, all these influencers ended up creating their own groups on Telegram, another messaging app. In Telegram groups, the influencer will post, “Buy this thing” or “Look, this other thing has been pumped 10 times.” Telegram is easier than Twitter because you don’t have to filter for random stuff. I’ve also found some wallets of these influencers, and I have alerts set up so when they make a purchase, they let me know and I can look at them.
I have no idea about these influencers. This is standard: in cryptography, you’ll never want to reveal your identity. Not many coin developers will reveal their Twitter handles. But these influencers have been in meme coins for a long time – I think they all got into shiba inu before it got big. They are really cocky, and they don’t know much when it comes to mainstream cryptocurrencies, but it doesn’t matter: they’re good at memes, which is why I keep them.
I slowly started moving most of the money I had in crypto into meme coins. I will probably buy three to five coins a day, and will be in and out very quickly. Once I bought a coin, and after two hours the price went up fivefold. I sold some of my tokens and then dropped a lot. But the $2,000 I put in is still $5,000, which wasn’t a terrible thing.
At first, the meme-coin thing was a little tricky. I was making some money, but my stuff wasn’t too hot. Then in early November, some developers launched GM Coin. In crypto, there’s something called GM, which stands for “Good morning,” and crypto people always say that as a greeting to each other on Twitter. So someone took that and made it a coin. I bought some GM when their market value was very low, about $300,000. Early on, I saw some signs that GM Coin could do well: I went to my Telegram group for Coin and noticed there were pretty big influencers in it – not just the people I follow but other influencers I got to know from space. Then an hour later, it rose to $4 million USD. Another hour, it slipped to $2 million from market value, doubled in value and bought more. I put about $7,500 in total into GM. When there were only a few thousand GM carriers, I was in the top 30, so I guess that made me a GMO whale. At one point, I owned more GM coins than any exchange, which is crazy.
When my GM coins hit $1 million two days later, I was overjoyed. The first thing I did was send money to some of my friends. They had wallets, so I sent them about $1,000. One of them was a friend I met on Discord – I don’t know him, but I know the address of his wallet. I also helped a friend of mine pay off a loan. She was young and didn’t know how credit cards worked, so she had about $10,000 of credit card debt that was charging 25 percent interest. So I said, “We can make a payment plan, and you can pay me instead of the credit card company.” I didn’t really buy anything else. I once thought, I made some money, so I’ll treat myself to a smoothie. But the juice was $8 and not worth it. I texted my dad and said, “Hey, I’m already a millionaire on paper now.” And my mom was like, “Oh, very good, son.” They were very comfortable about it. One day later, my GM coins were worth $2.5 million.
The next morning, I woke up and saw that a major crypto influencer – a man known for calling scammers – had tweeted that the developers behind GM’s coins had been wronged in the past. It can be hard to tell if posts like this are legit, but the tweet caused the price to drop more than 50 percent in three hours — people were only selling because they were afraid. I was terrified too. So I sold a lot of my coins, then I sold a little more, but I definitely missed selling at the top. I didn’t play it well, but I learned my lesson: the unstoppable meme coin can get rid of it tomorrow, so you have to get in and out. My investment in GM coin went from $2.5 million to $1 million, and I ended up raising about $500,000, now it’s in Coinbase or invested in other cryptocurrencies. (And because I owned a lot of GM, the price was down 10 percent when I sold mine.)
At this point, I definitely play the game differently than people who don’t have a lot of crypto. I often spray and pray: If I see an influencer saying, “You should buy this coin,” and it doesn’t sound like a scam, I’ll only buy $1,000. If you buy ten meme coins and eight are down 50 percent, one goes up ten times, and the other goes up five times, you’re already increasing a lot. I recently made $2000 an hour with one small coin, and two days ago I made $30,000 in 24 hours. I think this is all stupid and absurd. But at the same time, I will not complain – I do not want my life to change much. But if you can make it happen with a lot of money, it will be easier to justify taking on a job that isn’t competitive, rather than feeling the need to work in the most demanding, high-paying jobs. I don’t really want to work hard.
This whole thing is definitely aloof. I spent september doing nothing for school, october was tough too, although i’m fine with grades now. I’ll see friends sometimes, but I don’t always look forward to hanging out because I did once and I missed out on something huge. But I don’t plan to do that much longer. I want to get out of the market slowly before everything crashes again. I would like to go back to normal life. But give me a second – I’m going to something now.