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Why the Memecoin Supercycle Theory Attracts Traders

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2 hours ago


Investor and memecoin analyst Murad Mahmudov's memecoin supercycle theory is gaining popularity among cryptocurrency traders. It suggests that a combination of factors will create an endless supercycle for meme-focused cryptocurrencies.

The Memecoin Supercycle Theory

Mahmudov claims that trust and emotions associated with community can sustain the long-term growth of memecoins. Traders see this model as an alternative to complex technical analyses. For instance, Kyle Kemper, developer of political memecoins, believes that the supercycle represents a shift in metrics for evaluating projects.

Criticism and Skepticism

Despite the theory's popularity, many analysts doubt its sustainability. Jameson Lopp and Crypto Rand point out that memecoins are based on hype and marketing, leading to high volatility. Analysts believe that an economic model founded on illusions isn't sustainable.

Memecoin investors are looking for 24-hour or less returns, whereas a typical venture capital firm has a seven-year outlook.None

Potential Gains and Risks

Some observers point out that Mahmudov may personally benefit from spreading his theory, given his substantial investments in memecoins. However, experts are wary that such investments are based on speculation and may not be sustainable without a real technological foundation.

While the memecoin supercycle theory appears attractive to traders, its sustainability is questioned by experts. It's important to acknowledge that even if such investments can offer quick profits, they don't assure long-term growth and stability.

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