🚨 Memecoins and New Investors: A Cautionary Tale
📉 A recent survey conducted by Chainplay and Storible revealed that politically-themed memecoins such as
#TRUMP ,
#libra , and CAR attracted many first-time crypto investors but also resulted in significant losses and disillusionment. Nearly 80% of the 1,066 crypto investors surveyed purchased these president-endorsed memecoins, with about 37% being first-time buyers drawn by their political relevance and viral marketing. However, approximately 21% of these investors quit crypto altogether after their experience with these coins.
This suggests that, rather than fostering long-term engagement in the market, these memecoins have led to significant disillusionment.
📉 Despite the initial hype, the value of these memecoins has plummeted, resulting in steep losses for holders. The findings indicate that two-thirds of president-endorsed memecoin investors are losing money. As of February 19, nearly 560,000 (52.3%)
$TRUMP investors were at a loss, with almost 545,000 losing up to $10,000. Additionally, 287
$TRUMP investors lost over $1 million, totaling an overall loss of $3.6 billion for these investors. Three-quarters of LIBRA investors were also at a loss, with over 101,000 losing up to $10,000. Interestingly, while 26 LIBRA investors lost over $1 million, about 36 made over $1 million.
📉 The study also showed that 66% of CAR investors were at a loss, while 0.07% made over $100,000. The report concluded that while memecoins tied to political figures can attract mass participation, they also expose investors to the speculative nature of the market. The high-risk nature of these investments has pushed a significant portion of first-time buyers away from crypto entirely.
This is an alarming trend, as widespread negative experiences could slow down broader adoption and trust in digital assets.