Analyst says 70% of meme coin success depends on community

Meme coins have become a significant trend in the cryptocurrency world, driven largely by their communities rather than just the memes they are based on. 

According to analyst Murad Mahmudov, 70% of a meme coin’s success comes from its community engagement, while the meme itself accounts for only 30%. 

This focus on community involvement plays a crucial role in determining which meme coins thrive and which fade away. 

Meme coins like Dogecoin (CRYPTO:DOGE), Shiba Inu (CRYPTO:SHIB), Pepe (CRYPTO:PEPE), Dogwifhat (CRYPTO:WIF), Bonk (CRYPTO:BONK), and Floki (CRYPTO:FLOKI) have maintained strong community support, which has been vital to their ongoing presence and growth in the market. 

Despite their whimsical nature, these coins often reflect the emotional highs and lows of market cycles, attracting speculative investors, sometimes referred to as "Degens," who seek rapid gains. 

Mahmudov emphasizes the importance of the community, stating, “When you’re buying Memecoins you are, first and foremost, betting on People.” 

This view highlights that even a well-designed meme coin needs an active and engaged following to succeed. 

The community's role is crucial, as their collective belief, promotion, and defense against skeptics generate the momentum necessary for a coin’s success. 

Crypto executive Justin Sun also stressed the importance of genuine community engagement over mere numbers. 

He said, “I will check on the real social engagement. Are those likes real, or it’s just general bullshit? Do they have lots of influence, and the people really believe them?” 

This statement reinforces the idea that a committed community is more valuable than superficial metrics. 

While meme coins have surged in popularity due to viral marketing and branding, only a tiny fraction succeed. 

According to BeInCrypto, only 15 out of 1.7 million meme coins succeed, reflecting the importance of an active and genuine community. 

The sector also faces challenges such as rug pulls and scam tokens, where creators abandon investors after withdrawing funds. 

These incidents continue to undermine trust in the crypto market, highlighting the risks involved in meme coin investments.