Glossary
Memecoin
A token whose value comes from community attention rather than any cash flow or utility.
A memecoin is a token with no designed utility, no revenue model and often no working product. The price is driven by attention, narrative and liquidity in the pool.
That makes the mechanics unusually important, because the value is thin and concentrated. A small holder group, a shallow pool and retained minting rights are normal in this category and often fatal.
It is possible to trade them successfully with strict position sizing and a rule about taking profit. It is not possible to treat one as a long-term holding and expect a product to eventually justify the price.
Related terms
Airdrop
Free tokens distributed to wallet addresses, usually to reward early users of a protocol.
AMM
Automated Market Maker — a protocol that prices assets with a formula instead of an order book.
APR vs APY
APR is the yearly rate without compounding; APY includes compounding and is always higher.
ATH
All-Time High — the highest price an asset has ever traded at.
Bear Market
A prolonged decline, conventionally 20% or more from recent highs.
Bull Market
A prolonged rise driven by new demand, easy credit and rising confidence.