Memecoin

Active traders can make memes following equation where its initial market cap is set to $69,420\ \text{USD}$.

Disclaimer

The value of generated memecoins is not promised or guaranteed. Its initial market cap is never promised to keep its number. The primary purpose of memecoins are to encourage community engagement and facilitate participation in a community to trade digital assets.

Memecoin Market Cap and Pricing Formula

Variables

• Market Cap ($M_{kt}$): $M_{kt} = 69,420 \ \text{USD}$

• Target ETH Spent ($E_t$): Amount of ETH allocated for the initial memecoin purchase.

• Total Supply ($M_s$): Total supply of memecoins.

• ETH/USD Price ($P_{eth}$): The current price of ETH in USD.

• Initial Memecoin/ETH Price ($P_{init}$): The initial price of a memecoin in ETH.

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Step 1: Market Cap Condition

The market cap is the total value of memecoins in USD at launch:

$$M_{kt} = E_t \cdot P_{eth}$$

From this, the total ETH spent ($E_t$) is:

$$E_t = \frac{M_{kt}}{P_{eth}}$$

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Step 2: Initial Memecoin/ETH Price ($P_{init}$)

The initial price of the memecoin in ETH is:

$$P_{init} = \frac{E_t}{M_s}$$

Substituting ($E_t$) from the market cap equation:

$$P_{init} = \frac{\frac{M_{kt}}{P_{eth}}}{M_s}$$

Simplify:

$$P_{init} = \frac{M_{kt}}{P_{eth} \cdot M_s}$$

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Step 3: Fully Diluted Valuation (FDV)

The FDV is the total value of all memecoins in USD:

$$FDV = M_s \cdot P_{init} \cdot P_{eth}$$

Substituting ($P_{init}$):

$$FDV = M_s \cdot \frac{M_{kt}}{P_{eth} \cdot M_s} \cdot P_{eth}$$

Simplify:

$$FDV = M_{kt}$$

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Final Equations

Initial Memecoin/ETH Price ($P_{init}$):

$$P_{init} = \frac{M_{kt}}{P_{eth} \cdot M_s}$$

Fully Diluted Valuation (FDV):

$$FDV = M_{kt}$$

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Key Insights

• The market cap ($M_{kt}$) directly determines the target ETH spent ($E_t$).
• The initial price ($P_{init}$) depends on the market cap, ETH/USD price, and total supply of memecoins.
• The FDV equals the market cap because all tokens are effectively valued at the initial price.