Meme coins are among the most dangerous speculative means. The coin is not based on real value, but on a joke or trend, which makes people buy it without thinking, hoping to profit. But the reality? The losses are much greater than the gains, especially after politics got involved, like what happened with Trump's coin that turned the market into a circus.
Coins that have no project or technology behind them; their entire concept comes from an internet joke or a famous meme. Let's look at some things that distinguish them.
The supply is not limited, like Dogecoin, where 10,000 coins are created per minute! This means it's not rare, and this affects its value in the long term.
Its prices soar and plummet suddenly; a single tweet from a famous person is enough to raise the price suddenly, and then it crashes violently, like what happened in 2021 when Dogecoin soared by 12,800% and then dropped by 91%.
There is no real benefit; most of them have no actual use, but they thrive on the hype and the buzz surrounding the coin on social media.
Trump's coin; politics is playing in the crypto.
In January, a coin called $TRUMP was released, which is the first meme coin supported by a head of state. Within just a few days, its value reached 15 billion dollars, but it quickly dropped to 7 billion dollars, indicating that it is neither stable nor safe. Its main problems.
The company controls the market: 80% of the coin is with them, which allows them to buy or sell at any time and control the market for their benefit.
Linked to Trump himself: Any negative news about Trump, or even a wrong statement, immediately affects the price of the coin. It means it's more mood-dependent than necessary, and according to The New York Times, more than 800,000 people lost about 2 billion dollars after its price collapsed.
Experts warn: Cathie Wood – the director of Ark Invest – said that this coin is a "meme coin" that has no real value and only supports coins backed by genuine projects like Bitcoin.
The government has started to move: Democrats in America have introduced a law called MEME to prevent politicians from using crypto for personal or electoral purposes.
A negative impact on the entire market: with all the noise of meme coins, the serious projects backed by technology have become less visible, and the entire market has been affected, to the extent that XRP alone lost 19 million dollars.
The future..?
Although the SEC is still not regulating meme coins, warnings are increasing:
Most of them fall quickly: 80% of the coins created on the Pump.Fun platform – specialized in creating meme coins – disappeared from the market within days.
Just like bubbles such as ICOs or NFTs, which started with hype and ended in collapse, meme coins are going down the same path.
Is it worth the risk?
Someone might make a huge profit from a meme coin, but the loss ratio is much higher. Especially coins that are played with by politicians like Trump, turning investment into a game of mood and whims.
Focus on coins that have real value and a clear project, instead of chasing a trend that might end in an instant.
