Dog standing on money pile

Meme Coins: Who's Laughing Now

By Myxoplixx | CryptoCurious | 27 May 2024


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The cryptocurrency market has witnessed a curious phenomenon. The rise of meme coins. Yes, meme coins have always been part of the cryptoverse, but not like this. Remember when Dogecoin was just a silly meme about a dog? Well, those days are long gone. Today, meme coins like Dogwifhat and Shiba Inu are serious players in the world of cryptocurrency.  And like it or not, they seem to be here to stay. But why the meteoric rise of social joke coins?  

Get Rich Quick Dreams  

Let's be real, everyone wants to get rich, and preferably, get rich quick. Meme coins play into that desire perfectly. With their ultra-low buy-in prices, they offer the tantalizing possibility of turning a tiny investment into life-changing money. It's like buying a lottery ticket and then having to play Bingo on the winning ticket. This "low-dollar gamble" mentality is super powerful, especially when it feels like traditional markets and "safe bets" (real-estate) are growing more unobtainable for the 99%. Why bother saving pennies for years when a meme coin could supposedly explode at any moment?  

Casino Royale  

Think of the entire crypto market as the largest casino on earth. You've got your blue-chip coins like Bitcoin, Ethereum, Solana, you know, the heavy hitters. Then you've got all sorts of smaller, riskier altcoins. Meme coins hold a special place in this casino, they're like the penny slots. The odds are astronomical, but sometimes someone hits the virtual jackpot. This environment set the stage for the meme coin explosion. When an Elon Musk tweet can send a meme coin skyrocketing, it fuels the whole machine. Suddenly, everyone's jumping on the bandwagon, because...well, what if THEY could be the next person to strike it rich. FOMO is real.

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Multi-Billion Dollar Project Launch  

Further, a growing segment of retail investors are expressing anger towards VC involvement in certain crypto projects, particularly those with low token float and high valuations. They argue that VCs are using these projects to create "exit liquidity," leaving retail investors holding the declining bags. The re-emergence of Roaring Kitty only added fuel to the fire. The drastic valuation downturns of Starknet and Eigenlayer, both VC-backed projects with lofty launch price tags, despite being in the early stages of product delivery, serve as case studies for this sentiment. Retail investors view these projects as unprofitable and overvalued due to VC price influence, leading to a lack of confidence and price corrections.

Proceed with Caution

Of course, it's important to remember that meme coins are highly speculative. Their price swings can be insane, and there's no guarantee you'll ever see a return on investment. A coin that's on top today could be worthless tomorrow. They don't call them 💩 for nothing. But whether you consider them a passing trend or the future of finance, meme coins have undeniably changed the crypto landscape. They've brought in a wave of new investors, exposed people to volatile digital assets, and challenged traditional notions of what "value" even means. They've even spawned some pretty hilarious jokes along the way.      

How do you rate this article?

6


Myxoplixx
Myxoplixx

Just a dude with not so common sense making non-financial observations 😏


CryptoCurious
CryptoCurious

Insight into the cryptoverse, just better than them other jokers 😏

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