Shiba Inu, Dogecoin and now Pepecoin, Milady… So many memecoins that quickly seduced the world from their birth. If some investors find in themselves a shortcut to wealthothers see onlya mirage. Explanations from Markus Thielen, head of research at Matrixport!
The “memecoin” mirage
Is this the end of Dogecoin and Shiba Inu hegemony in the category of memecoins? Because right now, others mottoes inspired by internet memes burst in. As a special feature, they do not take long to be adopted by crypto investors. Such is the case of Pepecoin (PEPE), one of the assets currently occupying the visible part of the “memecoin” iceberg.
What is surprising with PEPE is its ability to attract investors. Since its launch on April 14, the token inspired by the famous character “Pepe the Frog” has reached a market cap of $1.83 billion. And that’s an understatement.
For Markus Thielen, memecoin investors look like powerball players, an American version of the lottery. Many people play this game in the hope of making a lot of money, and consequently of changing their lives. But, in the end most of them will lose.
” Numerous studies have shown that most people from lower socio-economic classes play the lottery […] because it is their way out of their lower economic class. […] Lottery speculators try to make money at lightning speed, and I think it’s very similar with cryptocurrencies. “, can we read in the lines of Cointelegraph.
It is also ” entertainment »
This idea comes from Anastasia Hronis, a clinical psychologist who specializes in gambling addiction. For her, memecoin fans are motivated by their ” playful and entertaining aspect ». Or quite simply by a desire to identify with a community.
” Memecoins like PEPE can be fun, but they are generally very risky investments and may end up having no intrinsic long-term value. […] Investors essentially gamble on its popularity, which undermines the principles involved in investing “, she specifies.
Brief, volatility does not spare most cryptocurrencies, including memecoins. However, it is clear that the prices of the latter fluctuate according to the feeling of community supporting them.
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