The “Memecoin” conundrum

Source: Gadgets360

Few things are more exhilarating than the ups and downs of investing in cryptocurrency, at least according to crypto enthusiasts.

Traditional investors will still scoff at the thought of cryptocurrency, but crypto is bigger than ever, and the impact it’s had on the financial world is tangible.

Heavy hitters like Bitcoin and Etherium have seen a massive dip in value, after a slow but steady rise.

That’s the way the cookie crumbles for crypto enthusiasts, it is simply too volatile to be taken seriously, no matter how many millions savvy investors manage to rake in from them each year.

Further adding fuel to the trivial nature of crypto investing in the eyes of the investing world is the presence of “Meme Coins”, a series of cryptocurrencies meant as a joke, but which have taken the internet, and some wallets, by storm.

Take for example the notorious Dogecoin, a coin based on the famous internet meme of a Shiba Inu, the meme community and internet lovingly dubbed, Doge- which started in 2013 by 2 people as a joke, like most memecoins.

Unlike most memecoins however, Doge spiraled into a phenomenon, with values skyrocketing during the crypto bubble of 2017 to 2018, and even the likes of Elon Musk allegedly endorsing it in 2019. Investopedia

If there’s any doubt of the popularity of memecoins, Shiba, a copycat riding on the coattails of Dogecoin has even been officially listed in probably the biggest crypto exchange platform, Binance.

According to an article on Fortune, SHIB, and any memecoin for that matter, may be a novelty today, but experts say that its popularity should not be ignored since it reflects a new growing breed of cryptocurrency traders.

It’s not that cut and dry though, some savvy investors and enthusiasts have their own two cents on the matter.

Lyon Ong, a content creator and crypto investor had some thoughts on memecoins : “To me memecoins are just dumb money. They simply have no significant value.”

And it’s true to some degree, memecoins are even more unstable than established currencies like bitcoin and Etherium.

They might grow to exponential heights and values, but could plummet just as quickly if not quicker, and it’s all down to what most would deem blind fate and not calculated predictions.

Fellow student and forex and crypto enthusiast Shaikh Mohammed Jaseem also noted the value in crypto and the blockchain technologies behind it, but realizes that currently it’s only played for public sentiment.

“These currencies like Doge and Bitcoin are being played by institutions pumping and dumping, and people are falling into that trap and losing tons of money.”

In the case of Bitcoin, Tesla CEO Elon Musk recently announced that they would cease accepting Bitcoin as payment for vehicles, sending the markets into a frenzy and costing people thousands and even millions.

“I really don’t believe that there’s any sense of value for their immense growth.

There’s a saying that 80% of people lose money in trading/investing and that’s totally applicable in today’s world.”

So while Memecoins could yield those daring enough returns, and large ones at that if the past is anything to go by, it’s still far too volatile and holds no inherent value to be considered sound investing.

But maybe to those who dare to dive in, that’s the whole point, the thrill is it’s own reward, and everything that comes after it is just icing on the cake.