Source: Cointelegraph
Original: “The 'Fart' Storm on the Solana Chain: Fartcoin Ignites a New Peak in the Meme Coin Market”
This Tuesday (May 13), Fartcoin launched on the decentralized exchange (DEX) Hyperliquid, adding fuel to the already booming market for Fartcoin. Before its launch on Hyperliquid, the coin was trading at around $1.25, and after the announcement, the price surged to $1.47. Although by Thursday afternoon at 3 PM, the price had retreated to $1.27, the coin has seen a 37% increase since the beginning of the year. In contrast, the three more well-known meme coins—Dogecoin, Shiba Inu, and Pepe—have seen declines of 28%, 29%, and 35% respectively this year.
From "stink" to soaring—The legendary rise of Fartcoin in just a few months
Fartcoin was launched on the Solana chain at the end of last year as an AI-generated experimental project. Despite its comical name, it delivered an impressive performance during the early bull market in the crypto space. In the first three months after its launch, Fartcoin skyrocketed from its issuance price of $0.003 in October last year to a historical high of about $2.74 in mid-January this year.
This three-month surge propelled Fartcoin to become one of the highest market cap meme coins on the Solana chain. However, Fartcoin also experienced extreme volatility, with its price plummeting over 90% in the following months, dropping to the $0.2 to $0.4 range in March, before recently rising again with the rebound in the meme coin market, now ranking among the top three meme coins by market cap on the Solana chain.
Fartcoin price trend this year. Source: TradingView
Will the next move ignite the market?
Although Fartcoin has maintained an upward momentum, it recently encountered resistance around $1.42, indicating that the upward momentum may temporarily slow down, and the market may enter a phase of consolidation.
The key support level to watch is $1. Since the price strongly broke through this level and formed a clear engulfing bullish candle, this area has yet to be retested. This engulfing candlestick has left behind what is widely considered a "market inefficiency zone" on the chart, which is a trading range that was skipped over during rapid price increases and often has a demand for retracement.
If the price falls back into this range, it could constitute a natural technical correction while forming a new higher low within the current bullish structure, accumulating momentum for subsequent upward movement.
Additionally, the continued upward movement of the daily moving averages approaching the $1 support area further strengthens the technical support at this level. If Fartcoin's price retraces to this key range, it is expected to gain technical rebound support and provide the market with an opportunity to reorganize its rhythm and accumulate momentum for a subsequent breakthrough of the $1.42 resistance.
Key technical points:
Wall Street's "Fart" Theory
With the rise of meme coins like Fartcoin, seasoned investors on Wall Street have issued warnings, believing that the market is caught in an unprecedented speculative frenzy.
David Einhorn, a famous hedge fund manager who accurately shorted Lehman Brothers in 2008, criticized meme coins like Fartcoin in a letter to investors this January, stating that they lack intrinsic value and are driven solely by hype and speculation. He bluntly stated, "These products are destined to fail, and over time, they may exhaust capital."
He even said that rather than investing in Fartcoin, he would prefer to buy an abstract painting, as at least that painting "would still be something people would want to hang on the wall."
Cliff Asness, founder of AQR Capital, expressed a similar viewpoint. He believes that the cryptocurrency market is currently in a bubble phase and needs to develop practical application scenarios that go beyond "speculation and crime" to gain broader recognition.
Owen Lamont, a researcher at Acadian Asset Management, sarcastically noted in a report titled "The Fartcoin Phase of the Market": "However, I disagree with the claim that Fartcoin is 'useless.' Its purpose is precisely to annoy and demoralize those of us who have spent decades studying financial markets, thinking we are doing serious and useful work." He also pointed out that the characteristics currently included in the "Fartcoin phase" are nihilism, attention-seeking, and foolishness.
From "laughing stock" to focus, the political game behind meme coins
Despite many meme coin projects repeatedly being exposed as scams, pump-and-dump schemes, or other unethical promotional projects, they still attract many "gambling-type" speculators hoping to seize short-term hype for quick profits due to the seemingly easy path to profit they offer.
However, this year, a series of token launches by the Trump family has thrown meme coins into a political maelstrom.
On January 18, former President Trump suddenly announced the launch of the official personal meme coin $TRUMP and promoted it on his social media platforms Truth Social and X, attracting a large number of supporters to buy in, sending the cryptocurrency market into a frenzy. Just two days later, his wife Melania's personal meme coin $MELANIA debuted on the day of the presidential inauguration, with price increases comparable to "Trump Coin." However, both of these meme coins experienced significant declines after a brief surge.
In April, after a period of stagnation for Trump's personal token, he issued an invitation for a dinner for TRUMP token holders, stimulating another rise in the TRUMP token market.
The MGX fund, operated by the brother of the UAE president, utilized a $2 billion stablecoin issued by "World Liberty Financial," supported by the Trump family, to invest in the cryptocurrency exchange Binance. This move sparked allegations of fund misappropriation, and related issues quickly evolved into legislative attention and action.
This series of events indicates that meme coins are no longer just an online joke; they are gradually evolving into a new battleground intertwined with politics, capital, and public opinion. In a context where regulation is still inadequate, the involvement of political forces not only exacerbates market speculation but also raises higher demands for transparency and compliance across the entire cryptocurrency industry.
Especially for investors, the risks and manipulations hidden behind the hype are far more concerning than the "get-rich-quick myth."
Related: Dogecoin traders predict: If Bitcoin (BTC) continues to rise, DOGE price will increase by 180%
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