TRUMP Coin up 20% in a week? Meme coins have recently started to surge again, but this might be the time when the 'sickle' is the sharpest!

These types of coins are like the 'fireworks' of the financial market — they look dazzling, but once they're burned out, all that’s left is a pile of ash. Take TRUMP Coin, for example; it has no technical support and no real application, solely relying on celebrity effects and community hype to drive up prices. The recent surge is likely the result of market makers playing the old trick of 'pump and dump', making it easy for retail investors to get caught holding the bag when they follow the trend.

How ridiculous is the risk of playing with Meme coins?

First, there's the 'liquidity trap': many small-cap Meme coins have daily trading volumes of less than a million dollars, and when you want to sell, you might not even find a buyer, with prices crashing 30% in an instant being common.

Second, there's 'manipulated schemes': market makers hold a lot of chips, and they can use hundreds of wallets to trade amongst themselves to pump prices or suddenly crash the price to zero. For example, a certain MEME coin surged 500% last month, only to plummet 95% within 72 hours, leaving countless retail investors with nothing.

Third, there's the 'regulatory time bomb': the U.S. SEC has long categorized Meme coins as 'high-risk fraud zones', and they could be classified as securities at any moment. Once an investigation is initiated, a price halving would be mild.

If you really want to dabble, remember these three life-saving rules:

1. Only choose top Meme coins (like Dogecoin, SHIB), with a circulating market cap of at least 5 billion dollars, which is relatively safe in terms of liquidity;

2. Invest with 'entertainment funds', at most 5% of your pocket money to test the waters, and if you lose it all, it won't affect your life;

3. Set a 'stop-loss line', for instance, sell half when it rises 20%, and decisively liquidate if it drops 15%, don’t stubbornly hold on like a gambler. Remember, the essence of Meme coins is a 'fool's game' — you never know if you are the last fool standing.

Let’s discuss the most ridiculous Meme coin hype you’ve seen in the comments! Share this with friends who want to trade coins, follow me for more insights on the 'wealth-building myths' behind the sickle logic!