The new $MEME token by Memeland is the talk of the town today. It’s been on a tear since its launch a few hours ago.

Community members who participated in the “Firesale” token generation event (where those on the allowlist were able to purchase $300 worth of tokens each at $0.001) are up a whopping 26X.

Consider that at the current token price of $0.026 , $MEME has a FDV of $1.8B, which is even larger than ApeCoin.

Let’s dive deeper into the tokenomics, and what might happen next

The total token supply is 69 billion tokens. Approximately 11% of tokens are in circulation today.

• 20% of tokens are locked in Memeland NFTs and will be unlocked over the next 24 months

• Another 9% of tokens (Firesale) will be unlocked daily over the next 18 months

• Investor private sales (10%) will start unlocking after 6 months while “contributors” (20%) will start unlocking after 12 months

The inflation schedule for $MEME is pretty nasty

• Almost 90% of tokens will be unlocked within the next 24 months, that’s an 8X supply expansion from today’s circulating supply.

• There are tokens unlocked every day from launch, which will contribute to constant sell pressure.

Memeland got a lot of things right with its launch and it’s not surprising that it’s showing good strength on its launch day. It has rewarded its NFT community handsomely with the firesale and airdrop, launched a farming program to broaden awareness, and achieved a Day 1 list on Binance.

But it’s hard to escape the forces of supply and demand. Once the early hype dies off, I expect the token price to start bleeding down from the constant unlocks. At least, until the next major catalyst.

The purpose of $MEME is still a bit of a mystery. The Memeland team stated that “$MEME IS LITERALLY A MEME COIN. NO UTILITY. NO ROADMAP. NO PROMISES.” — likely in part to steer clear of regulatory scrutiny. Despite that, investor expectations are that $MEME will power an ecosystem of yet-to-be-launched SocialFi projects.

Given that the major event—the token launch—has passed, I don’t see a compelling opportunity in the Memeland ecosystem right now, especially from a risk/reward perspective.

Rather, I believe it is worth paying close attention to NFT projects that have indicated they could be launching fungible tokens in the coming months. Recent token launches have had strong market showings (ZTX, BIGTIME, MEME) and were highly profitable for NFT owners.

Some of these projects include:

• The Grapes (@JoinGrapes)

• 0N1 force (@0n1Force)

• Mittaria Genesis (@Mittaria_Origin)

• Overworld (@OverworldPlay)

Please always DYOR!