Memecoins
Solana’s new memecoin: what is POPCAT?
A meme depicting the cat “Oatmeal” in various expressions has evolved into a meme 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 meme coin based on the viral Popcat meme on the Solana blockchain.
Popcat ($POPCAT) has rapidly increased in value, rising from an initial market capitalization of $200,000 to $600 million. This surge ranks Popcat as the third most popular meme coin on Solana, behind only Bonk and Dogwifhat.
Popcat Yearly Price Chart (Source: CoinMarketCap)
Viral origins: from meme to cryptocurrency
The Popcat meme originated in October 2020, featuring a cat named “Oatmeal” in two distinct facial expressions: one with its mouth closed and the other wide open in an “O” shape. Creating a crackling sound through switching these images has earned Oatmeal a cult following on the Internet.
The meme’s popularity has transcended social platforms, evolving into a digital currency on the Solana blockchain, exemplifying the profound influence of internet culture on the cryptocurrency industry.
Tokenomics by Popcat
Popcat’s tokenomics structure is simple and avoids complex mechanisms such as transaction fees or taxes, which can often discourage potential investors.
A total supply of 979,974,293 $POPCAT tokens was initially issued, of which 93.1% was placed into the liquidity pool and then burned to affirm the decentralized ethos of the project. The remaining 6.9% of the supply is protected in a multi-signature wallet, reserved for strategic uses such as facilitating stock market listings, building blockchain bridges and increasing liquidity, measures aimed at ensuring the sustainability and attractiveness of the token.
Community dynamics and challenges
Despite the token’s rapid rise, it has faced significant obstacles. By Christmas 2022, $POPCAT had reached a market capitalization of $50 million, an impressive feat for a community-based token without substantial institutional backing or centralized exchange listings.
However, tensions boiled over when the original developer attempted to sell 3,000 NFTs for 1.5 SOL each, sparking a dispute with the community. This conflict was eventually resolved when the community purchased the token upgrade authority from the developer for $35,000 in USDC.
While initially perceived as a bullish development, this led to a decline in prices, with $POPCAT stabilizing around a $5 million market capitalization as the memecoin market entered a bearish phase.
During the crisis, the resilience of the Popcat community became evident. Moderators, content creators and enthusiastic members played a vital role in supporting the project, laying a solid foundation for future recovery.
Their efforts have recently paid off, with $POPCAT seeing a notable 3600% price increase over the course of the year, spurred by renewed interest and the broader “cat coin” narrative within the ecosystem Solana.
Investment Risks and Considerations
Potential investors should be aware of the inherent risks associated with meme coins like Popcat. The value of the coin is primarily determined by social media influence and community involvement, lacking 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 put a strain on its long-term legitimacy and market presence.