TL;DR
- A new dog-themed meme coin has seen its price explode in the last few days, and its market cap briefly exceeded $450 million.
- Its rapid growth showcases the potential for high profits in the meme coin sector, but the extreme volatility poses significant risks for traders.
Another Rockstar
The meme coin sector frequently spews tokens that become sensations in mere days. The Solana-based Chill Guy (CHILLGUY) is the latest to make the headlines.
The meme originates from a popular illustration of a dog wearing a grey sweater, blue jeans, and red sneakers, smirking with hands in his pockets. The character gained huge popularity on TikTok in 2024.
The widespread interest led to the creation of the meme coin on the Solana ecosystem in mid-November. CHILLGUY’s price was hovering at a mere $0.007 upon launch, while currently (three days later) it is worth over $0.30 (representing a whopping 4,100% increase).
Its market capitalization soared from approximately $20 million on November 19 to more than $450 million several hours ago. Shortly after, the figure headed south, and as of the time of this writing, it stands at roughly $300 million.
CHILLGUY’s exponential pump captured the attention of numerous industry participants and well-known individuals. The X user Crypto Xlio claimed that “momentum is building, and the community is growing fast.” They also assumed that a listing on Binance “is only a matter of time.”
Such a move would most likely result in a further rally for the meme coin since support from the major exchange will increase its accessibility and credibility and potentially trigger an additional capital flow from investors toward the ecosystem.
Numerous memes, including Ponke (PONKE) and Simon’s Cat (CAT), experienced significant price jumps following support from Binance over the last several weeks.
The BTC-loving president of El Salvador, Nayib Bukele, also noted CHILLGUY’s rise. He posted a picture of the smirking dog on his official X account, fueling a wave of comments. Some of the users jokingly suggested that Max Keiser might criticize his interaction.
The popular broadcaster and filmmaker serves as a senior Bitcoin advisor to El Salvador’s President. He has been vocal in promoting BTC adoption within the nation, emphasizing its potential to enhance economic freedom.
Keiser is known as a Bitcoin maximalist, expressing strong criticism toward altcoins and seeing them as inferior to the primary cryptocurrency.
Beware the Risks
Meme coins are notorious for their extreme volatility. On the one hand, traders can use this as a plus and make substantial profits (assuming they jump on the bandwagon in the early days and cash out at the right time).
Conversely, it can result in crucial losses to inexperienced and overleveraged market participants. Those contemplating entering the ecosystem should follow some essential rules to avoid a devastating outcome. For instance, they should conduct proper research before dealing with a certain meme coin and invest only as much as they are ready to lose.
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