Memecoins are a prevalent part of the overall crypto ecosystem. Some memecoins, such as Pepe (PEPE), Dogwifhat (WIF) and Shiba Inu (SHIB), hold a spot in the top 50 cryptocurrencies by market capitalization among Bitcoin (BTC), Cardano (ADA), and other memecoin projects such as Dogecoin (DOGE), which are often in the news.
With such a buzz around memecoins, many may wonder how to create them on blockchain networks like Solana. This Solana token creation tutorial will cover creating a memecoin on the Solana blockchain, discuss the fundamentals of a memecoin, and explain how to market it.
What is a memecoin?
A memecoin is a cryptocurrency with little intended value. Rather than providing financial utility, such as the Ethereum network’s capacity to host decentralized applications, a memecoin exists to capture a moment in popular culture. For example, Shiba Inu’s creator built it simply because the Shiba Inu dog breed is a popular meme.
Memecoins that become popular may eventually gain utility in the decentralized finance (DeFi) space. Many online stores now accept Dogecoin — one of the most popular memecoins — in exchange for goods and services. Coinbase Commerce, a payment processing service, began accepting DOGE in 2021.
While everyone invests for different reasons, users typically invest in memecoins because they start out at a low value or because the investor finds the meme funny. However, investors have fallen victim to memecoin pump-and-dump schemes, losing thousands of dollars in the process. It’s important that investors only invest what they can afford to lose.
Memecoins may be built on existing networks like Ethereum, BNB Chain or Solana, though some projects, such as Dogecoin, have their own blockchain networks.
Can I create a memecoin without development knowledge?
Users can create a memecoin without knowing how to code or develop software. Services like the Orion Tools decentralized application (DApp) allow the creation of coding-free tokens. In the case of Solana, users must abide by the Solana token standards.
Prerequisites before creating a memecoin on Solana
Creating a successful memecoin on the Solana blockchain requires some forethought.
Step 1: Choosing a meme
When deciding which meme to pick to create a memecoin, it’s best to do some research. Is the meme popular enough to warrant a token? Does it have a dedicated subreddit or other online community? Is it referenced by big YouTube videos or used by the general public? If so, it’s probably a good option for creating a memecoin.
Step 2: Utility plans
Is there a larger plan in place? If a user intends for their memecoin to have utility beyond a simple investment, it’s best to create a white paper or website that details its tokenomics and future plans. This validity will help grow a dedicated community, as they’ll have a plan to rally around.
Step 3: Time commitment
Cryptocurrency development can be a lengthy endeavor. Creating the token is just the start. Users must market it, monitor a growing community and eventually create utility. These processes require dedication and, in some cases, a deep understanding of the Solana blockchain development ecosystem.
Step-by-step guide to creating a memecoin on Solana
There are various token creation applications and extensions for creating a memecoin on Solana. Many allow users to avoid smart contract development and build a memecoin without development knowledge. Users should be wary, as a few scam token creation services exist. This guide will cover the Orion Tools Solana token creation platform.
To start, users must acquire a Solana wallet. One of the most popular Solana wallets is Phantom Wallet. Upon acquiring a wallet, head over to the Orion Tools DApp and navigate to their token creator.
The token creator provides some Solana tokenization details to fill out, such as the token’s name, its symbol and its total supply.
After inputting the name, users should input the token symbol and their desired decimal count. Token creators that want a larger token supply should have a lot of decimals.
When listed on an exchange, the symbol provides a memecoin with a ticker for easy identification. Otherwise, Orion recommends having nine decimal points for a meme token.
The next step is to input the desired supply and token image. Token supply dictates how much of a token actually exists.
Then, the user needs to create a token description — a short few sentences describing the token’s use case.
Once the Solana token standards are in place, the token creator must click “Create Token.” A wallet transaction confirmation detailing the transaction and its transaction fee will appear, which must be paid in Solana’s (SOL) token. Users must have the required amount in their wallet to initiate a valid transaction.
Now that the token is created, if a user wants to create a liquidity pool, they must use the “Create a Liquidity Pool” tool below the “Create Token” tool they just finished with. They can simply select the created token and click “Revoke Freeze Authority.” This will cost another transaction fee, but it allows the creator to retain control over their asset. However, liquidity pools are necessary for long-term projects, as they allow traders to acquire the token.
It’s also best to click “Revoke Mint Authority” to secure the Solana token minting process, preventing others from minting the token, which will charge yet another transaction fee. Finally, after the transactions are cleared, the created token will appear in the connected wallet.
Now that the token is created, the creator can build a liquidity pool or market for their asset using Raydium or Invariant or share their token privately with friends. Creating a liquidity pool enables anyone to trade the token and is a popular choice for many involved in memecoin creation.
Marketing a memecoin created on the Solana blockchain
After creating a memecoin, users likely want to build momentum before its Solana token deployment on an exchange. There are a few ways to do this.
Creating a Telegram or Discord channel
Most memecoins have their own Telegram or Discord channel to promote news around the token and make announcements. A Telegram or Discord channel is a free way to bring awareness to a memecoin and serves as a space for users to discuss and ask questions about it.
Promoting the memecoin on social media
Promoting a memecoin on platforms like X or Reddit can help grow its community and inform users of its Solana token issuance date. For example, creating unique memes and posting them on relevant meme subreddits might draw attention to the project.
Influencer marketing
If the token creator has the funding to pay for it, they can promote their memecoin via influencers. Influencers and memes tend to go hand in hand, and if the memecoin is based on a large enough audience, one should have no problem partnering with an influencer or two.
Is it profitable to create a memecoin?
Creating a profitable memecoin is highly uncertain and not specific to Solana’s token economics. While popular memecoins like DOGE have seen success, most do not achieve significant profit.
Profitability often hinges on effective marketing, a strong community and a compelling meme that resonates with a broad audience. The inherent volatility and unpredictability of cryptocurrency markets further complicate the potential success of a new memecoin, making it a risky venture.