The MEME coins are going crazy this time, even the seasoned investors are speechless. Why is this happening?
It's actually not hard to understand. The rise of MEME coins is due to the fact that no one dares to heavily invest in these coins. Moreover, these coins had previously dropped too much, with some falling more than ten times since last year, and they hardly moved during the rebound phase that was supposed to happen from February to early April. Take the recently popular MOODENG Hippo for example; it fell continuously from last December to this April, hardly showing any significant rebound, and suddenly surged nearly ten times this week.
Other MEME coins are pretty much the same, with each one showing more extreme trends than the last. Those who dared to buy and hold indeed profited significantly from this MEME bull market. But for those like Ping Tou Ge, who bought a bunch of MEME coins in mid-April, ended up not holding onto any until now—this kind of operation is far too common in the crypto world.
To be honest, the crypto world is just this absurd, there’s really no way to rationalize it with any “logic.”
The rise of MEME coins relies on a few points: they had previously dropped too badly, very few people are buying them, and even fewer can hold them; once retail investors finish liquidating their positions and sell off, a wave of price increase can attract a large number of short sellers to enter the market, which could then trigger an unexpectedly huge price surge. Of course, most MEME coins will eventually drop back to zero, so don’t hold any illusions about that.
