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Understanding Meme Tokenomics: The Hidden Dynamics Behind Popular Tokens

DATE POSTED:September 23, 2024

Meme tokens have gained immense popularity, but their tokenomics often involve more complexity than meets the eye. Many meme projects claim that “100% of tokens are launched upfront,” but this doesn’t always tell the full story.

While it’s true that all tokens may be released at launch, a large portion—sometimes over 90%—can be held by the project’s team or insiders. This results in a more centralized token supply than many investors realize. Although centralized ownership isn’t inherently negative, it plays a significant role in how the token’s market behaves.

In low-liquidity markets, where only a small portion of tokens are actively traded, even relatively small trades can have a substantial impact on price. This often leads to higher volatility, especially with meme tokens, which are already driven by hype and speculation.

Centralized ownership doesn’t automatically mean price manipulation, but it’s a crucial factor in understanding how prices move. For investors, it’s essential to consider the distribution of tokens and the available liquidity when evaluating a token’s overall tokenomics.

Does Meme Tokenomics Exist?

Meme tokens are popular, but their tokenomics often go deeper than what’s advertised

Many claim “100% of tokens launched upfront,” but does it always tell the full story ?

Let’s break it down