Everyone is crazy about meme coins.
What they are and why you should be carefulMost people lose money
The main purpose of most meme coins is speculation and gambling. Users create or buy them in the hope that their value will increase so that they can make a lot of money very quickly.
In reality, the vast majority of people lose money because most meme coins are unstable and short-lived. They are also often the target of creating false scarcity in order to artificially increase demand in the short term, and thus their value.
š¢The creators of such coins usually raise a fuss on social media, sell everything they hold after the price reaches a certain level and withdraw. After that, demand drops, and with it the price, and a large number of people are left with assets that they cannot sell even at the price at which they bought them, let alone make any money.
There are several reasons for the increase in interest in meme coins. For example, in January 2024, pump.fun, a platform that allows anyone to easily create them, was launched. And Trump changed tack during the campaign, and now presents himself as an advocate of cryptocurrencies and property.
However, the biggest generator is probably young people, disappointed with the system, who want to get rich quick.
Institutional investors, companies that use strategies that would not be allowed in regular stock trading, make the most money from cryptocurrencies. In short, people who professionally deal with financial transactions.
And Trump? It is difficult to say with certainty what is going through the American president's mind. Some say that his supporters are buying his tokens to express their support. Others indicate that he is the owner of one of the entities that collects trading fees.$DOGE $SHIB $PEPE