Former Meta employee jumps into the "crypto rabbit hole": A guide to investing in chaos in Meme

Author: BitpushNews

Resigned from the Internet giant Meta, Justin has devoted himself to the crypto field full-time. As an entrepreneur and Crypto Degen (a fanatic), he not only successfully bet on popular targets such as PEPE, Degen, and TRUMP, but also accumulated rich results, but also Reasonable experiences and lessons have been learned from the market fluctuations.

In this exclusive interview with Bitui, Justin shared his story from Meta to Crypto, and deeply explored the investment strategies, market status and future trends of Meme coins. This article contains a lot of practical information, whether you are a novice or a veteran player of Meme coins, you can get inspiration from it. Recommended reading!

Part 1: Employees from major manufacturers jump into encrypted "rabbit

hole"

What are your family or friends reacting to meme and Crypto when you quit from Meta? What do they think of meme coins?

Justin: I am more like a Crypto degen than a "person who quits his job and starts a business from a big factory." Before joining Meta, I decided to work hard on Crypto for a long time, but felt that I needed more technical and teamwork experience, so I went to Meta. At that time, Meta also had a Crypto team, and many bigwigs were veterans of the Libra project, and Move language development team was also among them. Instagram even had an NFT business. As a result, not long after I entered, the bear market came, and Meta cut off all blockchain-related businesses and focused on the meta-universe and AI.

At that time, while earning wages in Meta, I exchanged most of my income and stocks for cryptocurrencies, and in my spare time I also tossed with various DeFi, NFT, SocialFi and Meme projects in Crypto. In 2023, as Chinese, we held the first Blockchain + AI conference in New York with a scale of 1,000 people, and invited many celebrity projects. These experiences have helped me a lot in my future business.

My family actually "are not understanding, but full support." My dad even searches for news by himself. Every time he sees Doge and Trump coins appearing out of the circle, he comes to ask me, "Do you buy it?" It's quite cute.

Do they support you All in Crypto?

Justin: At first, I was a little hesitant. After all, it is quite risky to give up such good treatment as Meta to go to an "uncertain" industry. But life is a choice. You can’t just have to keep your salary stable and want to seize the Alpha opportunity. I talked to them about Crypto’s long-term certainty, and they eventually respected my decision, and my dad even asked me to help him save some bitcoins.

Have you made or lost money in meme currency investment? What do you think about it?

Justin: Overall, it makes money, but the Meme coins that lose money are more than those that make money. The core strategy is: if I am optimistic about a certain Meme, I will place a heavy bet, such as Pepe in 2023, Degen in 2024, and Trump in 2025. In this way, even if most of the Memes are zeroed, the bets are enough to turn the tables.

I have seen many friends "showing a wide net". If you buy a little bit of each hot spot, you may indeed bet a hundred times the coins, but because the positions are too scattered, the final returns are average, and there are a bunch of zero-return coins in your wallet.

Have you ever stepped on a pit before you entered the meme track?

Justin: Meme Investment is a "comprehensive discipline". You must understand hot topics, emotions, culture, investment, and also understand yourself, which is linked together. What I have learned the most in the past two years is that the market can make you lose money, much more than you think.

Part 2: Discussion on the Current Situation of Meme Coin

CZ Dogs BNB Chain Meme, what do you and your friends around you think?

Justin: CZ saw the trend of on-chain trading volume and hoped to take advantage of the trend to push up the activity of BNB chain, but the community response was not very good. Because he did not clearly state which Broccoli was the orthodox version, hundreds of them appeared in the market instantly, cutting off many retail investors and dispersing liquidity.

This operation was very successful in marketing and indeed attracted the popularity of the BNB ecosystem. But the problem is that the sentiment of retail investors is determined by whether they make money or not. Many people lose money and naturally complain. This model creates topics in the short term, but in the long term, it may damage user trust.

Does the BNB ecosystem have any chances of becoming popular?

Justin: Of course there are opportunities, but the road is still long. The infrastructure of the BNB ecosystem cannot keep up with Meme's trading needs, such as transaction speed, infrastructure, stability, etc. Solana and Base also experienced many polishings to get the silky experience today. BNB obviously wasn't ready this time. Pancake and Binance Wallet had severe lags, high slippage, poor stability, etc., which led to many users' trading difficulties.

In addition, BNB needs to find its own burst point instead of simply copying other chain successful experiences. Solana has Pump.fun to standardize Meme issuance, aggregate liquidity, and drive the trading tool ecosystem. BNB also needs a similar breakthrough. I think AI may be a direction, especially AI applications. Chinese people are very good at this field. If they can incubate the "Pump.fun" of the AI ​​era, they may revitalize the entire ecosystem.

Argentine President Mile brought a single Meme coin, and then Rug Pull left. What do you think?

Justin: Mile may have seen the popularity of Trump and other celebrity coins, and thinks that it can combine Crypto to promote the Argentine economy and raise funds for private enterprises. Perhaps the KIP team also provided him with some profit sharing. But he probably didn't expect that he would be cut in the future, resulting in a collapse in the currency price and an explosion of social media public opinion, so he immediately deleted the post and cleared the responsibility.

How do Crypto traders or VCs around you evaluate this?

Justin: Many experts and Founders on the chain have lost money, with a total of at least US$10 million. Everyone was very angry at Milai's deletion because the endorsement of national leaders made them dare to take large positions. But Crypto is a casino, and every piece of information affects decision-making. The key is whether you can predict and deal with new information, such as when Mile deletes the push, do you choose to cut your losses or increase your position?

The most important thing is that traders should not develop a "loss aversion" mentality because of losses and think about buying at the bottom to make up for the losses. Instead, they should calmly analyze whether to increase positions or stop losses like they saw Milai tweet. The essence of trading is to pay for your own decisions.

Will "national-level order shouting" become the new normal of Meme coins?

Justin: If 3 to 4 national-level Meme coins are all "spent-up-pulsation-return to zero" mode in a short period of time, this gameplay will not be played anymore. Those who have lost money will not get on the bus again, and later countries will also I won't dare to play.

If it is to be established for a long time, it is necessary to find an economic model and gameplay that can continue to operate, otherwise it will collapse like NFTs, which will be popular for a short time and then collapse.

Part 3: How should ordinary users play meme?

Many meme coins investors say that they "know they are gambling, but they just can't help but rush." ​​What do you think of this mentality?

Justin: Meme coins give people a sense of "grassroots counterattack", which is similar to the attractive mechanism of casinos, but Meme's rise and fall far exceeds that of casinos, and even makes the casinos look a little boring. Although most people lose money in the end, the story of getting rich a hundred times or a thousand times will still make people believe that "the next person who turns over may be me." Even if you lose money, you will continue to rush because the FOMO mentality is at work.

But if you rush back and rush back, you can only live longer if you rush strategically. Real traders will carefully select targets with winning rates, rather than just rushing to see a Meme. At the same time, set a clear stop-profit and stop-loss strategy so that you will not be led by market sentiment.

If I were an ordinary investor, how should I judge which meme coins have potential and which ones are purely cut off?

Justin: Due to time reasons, I rarely sit in front of the computer, continue to pay attention to the newly opened memes, and participate in the internal trading stage. Therefore, I prefer to choose medium- and long-term memes with a life cycle of more than a few hours, which requires judgment on the narrative, chip structure, profit-to-loss ratio, and whether they have the explosive power of social communication.

Narrative

In terms of narrative judgment, I think there are two key points: the number of people covered and the depth of resonance. First, it depends on whether this narrative can reach enough people; second, whether it can impress these people and resonate with them. If the narrative is too niche, although it may not be bad, the ceiling is limited and it is difficult to spread on a large scale. Some IPs that are well-known to the public may not be suitable as memes, because everyone’s resonance and sense of identity may not be high. Both of these are indispensable.

Token Distribution

You need to determine whether this project has traces of a bachelor's life. Generally speaking, the dealer's wallet will definitely appear in the Top 100, so you can focus on digging into the address of the Top 100, and pay special attention to the fact that when the second segment is sideways, the dealer is most likely to end up attracting funds.

Market maker wallets mainly look at the number of transactions. Its function is to cash out and distribute at a high level, absorb funds to protect the market, and gradually raise the bottom, while harvesting the chips cut by retail investors and transferring the chips to diamond players and big investors.

Trading volume is also a good way to judge the dealer. I usually use trading volume/market value to judge. If this value remains >1 for a long time, it means that the dealer on this plate is still very strong.

Address library management: Every time I find a dealer, I will save the address and may use it again in the future, similar to the way to track smart money.

Risk-Reward Ratio

You need to set a target price for this token based on narrative judgment. For example, PNUT may be a 1B-level narrative, while Trump is a 100B-level narrative. Based on your current market value and your target price, it can help you determine whether it is worth investing and how many positions you should invest. For example, a narrative Dogshit2 that I am optimistic about recently, I think it can reach a market value of at least 100M, while currently only 2M, which gives me a 50x upside, so I will choose to invest a certain position and follow my judgment.

Virality

You need to quickly judge who is following this token on Twitter, and deduce their communication relationships, and analyze which potential circles or KOLs may pay attention to it in the future. This requires a certain accumulation of the KOL value in the meme core circle. You can use tools such as Katio or The1 to analyze the influence of the call KOL and assist in judging its communication potential.

Many meme experts have summarized many excellent investment suggestions. I suggest you check out the "Meme Operation Guide from 0 to 10 million US dollars" written by GMGN and the experts on the chain. There are many in-depth analysis of the selection of meme targets and corresponding ones. stop-profit and stop-loss strategy. This guide is a very practical reference. GMGN: From 0 to 10 million US dollars Meme Operating Guide.pdf

What would you think of a meme project yourself? Are there any rules for setting "stop profit" or "stop loss"?

Justin: Look at a meme and it is divided into several stages: Obtain information → Evaluation → Investment → Take Profit/Stop Loss.

Obtain information: As many information channels as possible, while ensuring information quality. I will discuss it in some of the players on the core chain, and I will also pay attention to the Twitter and TG groups of high-quality KOLs to ensure that when high-quality projects appear, I can know it as soon as possible. In addition, I will also focus on the signals on the chain and try not to miss potential targets.

Quick evaluation: After discovering a potential meme, you need to make a quick judgment. Twitter mutual friends are a very helpful judgment dimension, which requires your Twitter follower list to be well trained, pay more attention to high-quality KOLs, and continuously accumulate high-quality information sources. This is a magic weapon to judge the quality of the project. Next, evaluate the narrative, chip structure and profit-loss ratio according to the method mentioned earlier, and then decide whether to invest and the size of the investment position.

Take-profit and stop-loss strategy: My strategy is to double or triple the first return to the profit first, and the remaining part will take-profit in stages according to the ideal valuation. Meme changes too quickly, and I will not set rigid stop-profit and stop-loss standards, but will adjust in real time based on market sentiment. For example, the sudden deletion of Argentine President Mile cannot be predicted in advance. When such an emergency occurs, you must stop the loss immediately and do not hesitate.

If you were asked to give meme investors 3 survival suggestions, what would you say?

Justin: 1. Learn to judge the emotions, communication, durability, and whether the topic is cyclical. Whether a meme can become popular depends not only on the narrative itself, but also on whether its emotions can continue to ferment.

2. If you are optimistic about meme in terms of narrative, chip structure and profit-loss ratio, you must dare to take positions and do not blindly diversify your investment. An investment method that is too diversified may prevent you from making big profits, and eventually it becomes "working hard for a long time, but you will earn pocket money."

3. Losses are part of success. Carefully analyze the reasons for each loss, summarize them in depth, and apply them to the next investment. A true master is not not losing money, but being able to learn from every loss and constantly optimize strategies.

Part 4: How will Meme go in the future

Do you think the meme coin hype has reached its peak, or will there be a crazier way to play in the future?

Justin: I think there will definitely be a more crazy gameplay in the future than Pump.fun. Meme culture runs through the entire history. Before the emergence of blockchain, people were already good at playing with memes and culture, which is one of the indispensable pleasures in life. Blockchain gives Meme more efficient creation and dissemination methods, making it possible for an IP to become popular quickly, which is impossible to achieve the efficiency of traditional culture communication.

I think social, news and Meme will be more closely integrated in the future. If every news and hot topic can correspond to a Meme, what kind of scenario would it be? Perhaps the future Meme ecosystem will not be just a transaction, but will become a consensus carrier for some kind of news hotspots, allowing people to participate in it in a more intuitive way. This will be very interesting and may also be the next big opportunity.

If you were asked to predict the meme market in 2025, do you think it will continue to be popular?

Justin: Meme will not only continue to be popular in 2025, but will also run through the entire market for a long time. Meme has become a way of expression of news, hot topics and culture for a new generation, building consensus through currency prices.

Hot topics will continue to appear, trendy culture will continue to evolve, and popular people will emerge one after another, but the trends will be different every year. Therefore, if you want to seize opportunities in the Meme field, you must be sensitive to world hotspots, including technology, culture, trends, politics and other fields.

Each field will have its own leading Meme. Investors can choose the direction they are good at, give full play to their advantages, and dare to seize opportunities when the right Meme appears.

Do you think the meme ecosystem can become a "valued long-term asset"?

Justin: To understand the essence of Meme, it is actually a kind of information with dissemination attributes. Whether Meme can become popular depends on whether the information it carries (culture, memes, news, popular figures, etc.) can accumulate enough attention and communication effects in the short term. This is similar to the hot search mechanism, the difference is that Meme is measured by trading volume and market value, while hot searches are judged by post popularity and views.

Then, to judge whether a Meme has long-term value, it depends on whether the information it carries has the ability to disseminate long-term or periodically. For example:

Doge is mentioned by Musk from time to time, and at the same time, it is linked to the US government's efficiency issue and has long-term discussion value, so Doge has become a long-term Meme.

PNUT Meme has extremely strong real-time explosive power, but it is difficult to predict whether it will have a suitable scenario to detonate again in the future, so its long-term attributes are weaker.

From the current perspective, only a few Memes have long-term value, and most of them are still short-term hot spots and do not have the ability to explode again. The life cycle of these Memes is like fashion trends, with new trends every year, and old Memes are gradually being eliminated. Therefore, the Meme ecosystem will continue to evolve, but only a very small number can truly become long-term assets.