- Stratos, a venture capital firm, has seen a 300x return on its investment in Solana meme coin Dogwifhat (WIF), sparking interest from other hedge funds.
- The firm invested in WIF when it was around $0.01 and is still holding onto its stash, which is now trading for $2.76.
- Despite the success, Stratos maintains a cautious approach, focusing on survival in the volatile crypto market.
Stratos, a venture capital firm, has reaped a 300x return from its investment in Solana meme coin Dogwifhat (WIF), sparking interest among other hedge funds in meme coins as a legitimate investment.
Stratos’ Investment in Dogwifhat
California-based Stratos invested in WIF in December when it was priced around $0.01. The firm is still holding onto its WIF stash, which is now trading for $2.76 according to CoinGecko data. Prior to investing in WIF, Stratos had invested in some of the “blue chip” meme coins like Dogecoin, PepeCoin, and Shiba Inu.
Why Invest in Meme Coins?
Stratos’ founding partner, Rennick Palley, explained that the traditional path for saving and investing is no longer viable due to unaffordable housing, rising inflation, and bad governmental policies. As a result, they have turned to alternative assets, with meme coins taking center stage. Palley believes that meme coins as an asset class within crypto are going to be the best performing sector this cycle. However, the firm plans to take a more calculated approach and not increase the amount of risk that it takes on trying to find the next WIF.
The Future of Meme Coins
Despite striking gold with WIF, Stratos won’t be rushing into small market cap meme coins. Instead, it’ll be taking a more calculated approach as it believes the market is currently in a meme coin supercycle. “The key in crypto is survival. So that’s our focus,” Palley concluded.
Conclusion
The success of Stratos with its investment in WIF has sparked interest in meme coins as a legitimate investment. However, the firm’s cautious approach highlights the volatile nature of the crypto market and the importance of calculated risk-taking. As the market potentially enters a meme coin supercycle, it remains to be seen how other hedge funds will navigate this new investment landscape.
