Shitcoins and Dopamine: Why it worked

Why did memecoins and shitcoins work so well when they first appeared? Doge, shib, and so on? IMO because they gave you exactly what you are looking for in a financial market. And no it’s not money, it’s dopamine.

1.Price is a fraction, therefore only a few dollars can get you thousands or millions of tokens.

You feel like a big boy in Wall Street, you look at your wallet and you own millions of tokens. Gives you a fake sense of being a whale and surprisingly alot of people (specially when memecoins first start popping off) were not aware of the concept of market cap and total supply.

2.Very low liquidity, extreme price moves.

It’s highly common for the creators of memecoins to provide very low liquidity to the pool at first. After that, they make one big buy themselves, many times over the liquidity they provided. You know what happens?.. You guessed it right, big big green candle. And don’t we all love big green candles.

3.ICO Exclusivity and becoming early player.

This was not the case of doge and shib, but it’s true for MANY that came afterward. Many of these “devs” have an all marketing plan around exclusive access to the ICO. “It’s not for everyone, you have to apply and only a few get accepted”. Well this exclusivity costs money and has a (big) minimum buy of ICO tokens. But boy oh boy, who doesn’t want to be exclusive and have first access to the tokens while they are “cheap”. The big “apply” button is in gold and everything!

4.White paper with graphics and Buzz words.

You “read” it in 5 minutes and you think you have done your research. It has graphics and everything. That’s what investors do right? It makes you feel like you did a wise decision and know what you are getting into. Warren Buffet does read documents after all.

I’m not criticizing people who fell for this. It’s very easy to get addicted to the dopamine these crypto “projects” feed you. Many of us are young and this was our first contact with assets and investment. People fell for very similiar things when stock market was young.

Me myself almost got into an ICO where I was “accepted” to the exclusive elite and had a minimum buy of a few SOL (back when it was 200$). Fortunately, I never pulled the trigger and dodged a big pullet.