Memecoins
Solana’s new Memecoin – What is POPCAT?
A meme featuring the cat “Oatmeal” in various expressions has become a coin, reflecting the significant influence of internet culture on cryptocurrencies.
Meme coins have carved out a niche for themselves, captivating investors with their blend of humor and speculative potential. Among the latest to capture the market’s imagination is Popcat, a coin based on the viral Popcat meme on the Solana blockchain.
Popcat ($POPCAT) quickly increased in value from an initial market cap of $200,000 to 600 million dollars. This surge ranks Popcat as the third most popular coin on Solana, behind Bonk and Dogwifhat.
Popcat Annual Price Chart (Source: CoinMarketCap)
Viral origins: from meme to cryptocurrency
The Popcat meme originating in October 2020, featuring a cat named “Oatmeal” in two distinct facial expressions: one with a closed mouth and the other wide open in an “O” shape. Creating booming sound through flipping these images has earned Oatmeal a cult following across the internet.
The meme’s popularity has transcended social platforms, evolving into a digital currency on the Solana blockchain, illustrating the profound influence of internet culture on the cryptocurrency industry.
Popcat Tokenomics
The structure of Popcat’s tokenomics is simple, avoiding complex mechanisms such as transaction fees or taxes, which can often deter potential investors.
The total supply of $979,974,293 POPCAT was initially issued, of which 93.1% was placed in the liquidity pool and then burned to affirm the decentralized philosophy of the project. The remaining 6.9% of the supply is secured in a multi-signature wallet, reserved for strategic uses such as facilitating exchange listings, building blockchain bridges and improving liquidity, measures aimed at ensuring sustainability and attractiveness of the token.
Community dynamics and challenges
Despite the token’s rapid rise, it has faced significant obstacles. As of Christmas 2022, $POPCAT had reached a market capitalization of $50 million, an impressive feat for a community token without substantial institutional backing or a centralized exchange listing.
However, tensions arose when the original developer attempted to sell 3,000 NFTs at 1.5 SOL each, sparking a dispute with the community. This conflict was eventually resolved when the community purchased token update authority from the developer for $35,000 in USDC.
Although initially seen as a bullish development, this led to a decline in price, with $POPCAT stabilizing around a $5 million market cap as the memecoin market entered a bearish phase.
During the recession, the resilience of the Popcat community became evident. The moderators, content creators and enthusiastic members played a central role in the sustainability of the project, establishing a solid foundation for future recovery.
Their efforts have recently paid off, as $POPCAT saw a remarkable 3,600% price increase over the year, driven by renewed interest and the broader “Cat coin” narrative within the industry. Solana ecosystem.
Investment risks and considerations
Potential investors should be aware of the inherent risks associated with meme coins like Popcat. The coin’s value depends primarily on social media influence and community engagement, lacking any economic value or intrinsic utility.
This can lead to high market volatility and unpredictability. Additionally, the lack of an official connection to the original Popcat meme and associated game could call into question its legitimacy and long-term market presence.