$MEW is still climbing the rankings of Solana Meme Coins with its market capitalization currently reaching the 6th spot and its daily transaction volume reaching the 2nd spot compared to others.
Most traders seem to be diving head-first into this meme token without finding out what the token is and how it works. This is why this article will give details about what $MEW is and how the meme token works.
$MEW’s Utility
$MEW is an SPL-based meme token, created on the Solana Blockchain. It was created to bring a new narrative to the meme coin sector which is a cat-themed meme coin among other dog-themed meme coins.
With the dominance of $SHIB and $DOGE, along with other dog-themed meme coins, the team behind $MEW wanted to create a new meme coin to overthrow them.
There is no other goal behind the community aside from dethroning the dominance of dog-themed meme coins.
$MEW has no other fundamentals aside from this, as it solely relies on the community and partnerships to drive positive sentiment toward its price.
The token cannot be used as a governance token as well as a staking token, as the project does not have its blockchain or any product of its own.
However, some decentralized applications on the Solana Blockchain are trying to adopt $MEW as a liquidity farming token, so that holders can lock their $MEW with other cryptocurrencies as a pair to mine liquidity.
Aside from this, no plans are going forward to create their product, as the project does not have its roadmap.
Token Holders Distribution
From the information above, it can be seen that $MEW is a meme token which is why traders love it.
But, with meme tokens or coins there are several risks involved, one of which is the volatility that can be caused by a large holder, holding a huge amount of its overall supply.
Looking at the token holder's distribution of $MEW, it can be seen that some whales are controlling the overall supply.
The top 10 holders currently own almost a third of the overall supply, which can be bad if some of them decide to sell all their holdings.
However, looking closer into the wallets, it can be seen that, out of the top 10 holders, 4 of them are exchanges and the wallets of the creator of the token.
This is still risky as more than 15% of the token supply is held by a group of holders, which can manipulate the price if they want to.
Conclusion
Overall, $MEW is similar to most meme coins and tokens in the market, where it has its whales and its volatility.
This is what makes $MEW interesting to degen traders as the volatility itself can bring significant returns, even if it is tied with significant risks.
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