Meme coins have carved a unique niche in the crypto ecosystem. One notable figure in this arena is Justin Sun, founder of Tron, whose insights into meme coin investments are highly regarded.

During a discussion on the Crypto Banter YouTube channel, Sun outlined the key factors he evaluates before investing in meme coins. Consequently, these factors might provide a valuable framework for investors.

Sun prioritizes attention in his investment strategy. Inspired by Elon Musk’s view that those who control memes control the universe, Sun emphasizes meme coins’ ability to capture and sustain public attention.

“Today’s economy is about attention. So memes actually capture all the attention, right? If you get attention from everybody, you can actually control the universe,” Sun emphasized.

Read more: 7 Hot Meme Coins and Altcoins that are Trending in 2024

This approach is evident in the evolution of meme coins, from Dogecoin’s (DOGE) inception in 2013 to recent entrants such as Pepe (PEPE) and Dogwifhat (WIF).

Secondly, Sun assesses how effectively a meme coin’s developers engage their community. He looks beyond quantitative metrics like social media followers, seeking a deeper, genuine connection.

“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? Also, I will see the founders, see their material, and see the memes they made and the videos they made. I will see if this is the right video and the right social engagement,” Sun elaborated.

The third point is to evaluate whether the team puts effort into developing meme coins. Contrary to common misconceptions, Sun argues that creating a successful meme coin requires effort. Additionally, he compares the efforts to developing major crypto platforms, such as a layer-1 blockchain or a crypto exchange.

He emphasizes that meme coin development involves strategic narrative building, community engagement, and continuous innovation.

“Lots of people are thinking that meme coins are just launched by one click, and somebody is getting lucky, and then the whole thing can pump to $1 billion, and everybody gets rich. I don’t think this way, actually. It just takes very different efforts. But it’s not like much less effort compared to doing other things, so that’s why, I believe you also need to pull a lot of effort and lots of things,” Sun stated.

Read more: 7 Best Tron Wallets for Storing TRX

Finally, Sun remains optimistic about the potential of Tron-based meme coins to achieve substantial market capitalization, akin to Dogecoin or Shiba Inu. He once again emphasized that Tron will soon have a meme coin with a $1 billion market capitalization.

Currently, Tron meme coins are challenging the dominance of Solana. As a result, Solana’s meme coin launch platform Pump.fun has seen a 47% decline in new launches, dropping to five-month lows.

The post 3 Factors Justin Sun Considers Before Buying Meme Coins appeared first on BeInCrypto.

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