Gotbit, a performance-focused Web3 market maker, supports memecoin projects with tailored market-making strategies and infrastructure to help them thrive in a competitive landscape.
Memecoins are no joke — at least not anymore. What began as an internet novelty has evolved into a significant force within the crypto market, catching the attention of institutional investors and multinational firms alike. The rapid rise of memecoins is rattling the market, demonstrating that these digital assets are more than just a fad.
A recent report highlighted that institutional investors have increased their memecoin allocations by nearly 300%, bringing the total to just under $295 million. The Avalanche Foundation also recently announced a $100 million fund dedicated to memecoins, acknowledging the assets’ high community value driven by engagement, culture and a unique blend of humor and virality.
Moreover, high-profile figures like Elon Musk have weighed in on the memecoin discussion. Musk has pointed out that Dogecoin (DOGE) offers a higher transaction volume capability than Bitcoin (BTC) and lower transaction costs. He also noted that the unlimited supply of Dogecoin encourages spending, making it a more practical payment system.
The initial skepticism from traditional financial institutions, which once dismissed memecoins as a fad, is now being replaced with a more nuanced understanding. Even Franklin Templeton, a United States investment firm with over $1.6 trillion under management, has acknowledged the potential for quick profits in memecoins, despite their inherent volatility.
The Value Between Meme Coins and Their Native Networks pic.twitter.com/LYjQ5HvXHp
— Franklin Templeton Digital Assets (@FTI_DA) March 13, 2024
In an exclusive interview, Gotbit Hedge Fund CEO and founder Alex Andryunin objected to Franklin Templeton’s comments, noting that the market has shown resilience, even during downturns.
According to Andryunin, memecoins are no longer a laughing matter. “Although memecoins, and all altcoins, track with the movements of Bitcoin and are still highly volatile, they are meeting a need that retail buyers have for variety, low-entry points and creativity in expression,” Andryunin said. “Memecoins are a vital and growing part of the crypto space and large and institutional investors are catching on and beginning to ride the same wave.”
Memecoins as a bridge to new audiences
Beyond their market value, memecoins are critical in onboarding new users to the crypto space. As the founder of Gotbit, a company that specializes in market making, Andryunin believes memecoins are an effective tool for introducing Web2 audiences to the blockchain world.
“Memecoins are the bridge to onboard Web2 audiences to crypto,” Andryunin said, emphasizing their role in driving onchain activity and stimulating the use of layer-1 blockchains.
Memecoins also appeal to Web3 traders and investors tired of traditional venture capital-driven projects. These investors appreciate the transparency and community-driven nature of memecoin projects, where success is often determined by the collective effort of the community rather than a small group of insiders.
The complex world of market makers in memecoins
Market makers (MMs) are vital in the crypto ecosystem. Effective MMs work directly with their clients and help them with setting orders, creating launch strategies, helping with crypto exchange listings, networking and marketing. However, the effectiveness of market-making strategies can vary widely depending on the approach taken by the MM.
Gotbit, which has over 500 memecoin clients, including notable projects like Bonk (BONK) and Myro (MYRO), focuses on helping these projects achieve their goals through tailored strategies.
BONK is one of the most hyped meme coins of all time.
— Gotbit Hedge Fund (@gotbit_io) December 19, 2023
We have been collaborating with $BONK since August 2023 - in this thread, we will reveal some of what makes BONK stand out vs the field.
Let’s discover the secret formula pic.twitter.com/gK7ujBsvO0
Alex Andryunin explains that successful market-making requires a deep understanding of the project’s narrative, community structure and roadmap. Rather than applying a one-size-fits-all approach, Gotbit adapts its strategies based on the unique characteristics of each project, using playbooks gained from previous experiences to customize a plan for each project to enhance guidance of their future endeavors.
Although MMs are crucial for ensuring liquidity, memecoin projects must collaborate with firms that share their long-term vision. Gotbit, for instance, focuses on supporting projects by utilizing their token liquidity to achieve strategic objectives without engaging in price manipulation.
In addition to trading services, Gotbit offers assistance with onchain infrastructure, such as technology and algorithms, and helps projects gain exposure on tier-1 exchanges like Binance and Coinbase. Gotbit also produces Gotbit Crypto Spaces, a popular memecoin show on X, which reaches a regular audience of over 300,000 people.
As the memecoin sector matures, it becomes a pivotal part of the digital economy. Initiatives like Gotbit provide the critical support memecoin projects need to thrive in an increasingly competitive landscape. With the proper support, memecoins have the potential to shape new financial paradigms driven by innovative platforms and the communities that power them.
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