Murad Mahmudov, a meme coin analyst, has put out a data table with nine metrics that are meant to measure how decentralized memecoins are
In a recent X post on November 29, Murad showed off what he calls “the most important meme coin statistics table I have ever put together.” There are nine measures in the table that can be used to judge how decentralized the top meme coins are.
“Checking the level of decentralization of the most popular meme coins from nine different views. “The blockchain is honest,” Murad wrote in his post.
Meme coins like Goatseus Maximus, Popcat, and MOODENG have become very popular in the crypto world. Their market caps range from thousands of dollars to billions of dollars. Many buyers, from experienced traders to people who have never invested before, are interested in these coins.
But there have been many “rug-pulls” in the meme coin circles, where the value of a token goes through the roof in a short amount of time and then falls just as quickly. Traders lose all the money they put into the token when a major user sells it all at once, causing the value to crash.
Murad tries to dispel the crypto community’s mistrust of meme coins by measuring their decentralization. Meme coins are seen as risky investments that can lose a lot of value. If a token is more decentralized, buyers are less likely to be scammed by powerful holders who want to take it away from its value.
How do you measure Murad’s joke coins?
Murad used nine different factors to figure out how decentralized something was. The first measure is Median Holder Rank, which shows the rank of the wallet that holds the token the most often. A lower rank means that holders are more evenly distributed, which means that decentralization is better.
The next index is the Herfindahl-Hirschman Index, which uses a scale from 0 to 10,000 to show how concentrated control is. A smaller score means that things are more decentralized, and a score of 10,000 means that everything is fully centralized.
The third measure is the HolderScan Distribution Score, which rates how well tokens are spread out. Better diversity is shown by a higher score. The fourth, fifth, and sixth metrics show the share of tokens owned by the top 100, 25 largest holders, and 10 largest holders, respectively.
As a percentage and a ratio, the seventh and eighth measures show the share of wallets that hold more than $1,000 worth of the token. The ninth number looks at the percentage of new wallets that were made in the first week after a token went live. A smaller percentage means that decentralization is working better.
How are the measures used with meme coins?
You can use Murad’s measures to figure out if a meme coin is decentralized enough to be worth investing in. Most of the time, coins with low HHI values, few concentrated holders, and a lot of users who have $1K or more are more decentralized.
On the other hand, high HHI values, large clusters among top holders, and high wallet activity in the first week may mean that a few wallets are becoming more centralized and powerful.
SPX6900, which many people think is Murad’s favorite joke coin, has a median holder rank of 181, an HHI of 29, and 16.8% of its holders are at the top. SPX6900 is the best when it comes to independence.
At the bottom of the table is MOODENG(MOODENG), which has a typical holder rank of 19, an HHI of 303, and 33.5% of its holders being top holders. Based on the data Murad gave, this means that MOODENG is more centralized.
