New Investors Were Drawn In, but Many Are Leaving the Crypto Market
A recent study has revealed that politically themed memecoins, such as TRUMP, LIBRA, and CAR, have attracted a large number of new investors to the crypto space. While some saw short-term gains, the majority ended up in losses, leading to massive disillusionment among first-time buyers.
One in Five New Investors Quits Crypto Due to Memecoin Losses
A study conducted by Chainplay and Storible, surveying 1,066 investors, found that nearly 80% of them invested in politically themed memecoins like TRUMP, LIBRA, and CAR. Around 37% of these investors entered the crypto market for the first time due to the political hype and viral marketing surrounding these tokens.
However, reality hit hard—as many as 21% of these new investors decided to quit crypto entirely after their experiences with these coins. The study highlights that rather than encouraging long-term engagement, these memecoins led to significant disillusionment, which may slow down the broader adoption of digital assets.
"High volatility, rapid pump-and-dump cycles, and a lack of sustainable value have likely driven many newcomers away," the report states.
Two-Thirds of Political Memecoin Investors Are in the Red
Despite the initial hype, these tokens plummeted in value, leaving many investors with severe financial losses. The study found that 66% of memecoin investors ended up at a loss.
🔹 TRUMP Memecoin
52.3% of investors suffered lossesNearly 545,000 investors lost up to $10,000287 investors lost over $1 millionTotal investor losses for TRUMP reached $3.6 billion
🔹 LIBRA Memecoin
75% of investors ended up in lossesMore than 101,000 investors lost up to $10,00026 investors lost over $1 million, while 36 investors made over $1 million
🔹 CAR Memecoin
66% of investors suffered lossesOnly 0.07% of investors made more than $100,000
Political Memecoins: High Participation, But Even Higher Risk
The final report highlights that memecoins tied to political figures have the power to attract mass participation, but they also expose investors to extreme risks.
A large portion of first-time investors had a negative experience and completely distanced themselves from the crypto market, which could impact the overall adoption of digital assets.
"This is an alarming trend, as widespread negative experiences could slow down broader adoption and trust in cryptocurrencies," the study concludes.
#PoliticalCrypto ,
#memecoins ,
#CryptoNewss ,
#CryptoRisks ,
#blockchain Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“