#MemecoinSentiment Memecoins, meme coins, or meme tokens refer to these crypto assets that originate from the world of memes: images, slogans, or jokes circulating on the internet. These cryptocurrencies, like $DOGE or $PEPE , are often viewed as crypto-jokes. As for the term sentiment linked to meme, according to Le Petit Robert 1, 1977 edition, it refers to the collective mindset of investors and the community in general. In the world of cryptocurrency, sentiment can move prices, trends, etc., or reveal unexpected opportunities in the crypto environment.
Indeed, the popularity of memecoins originates from the explosive mix: tweets going viral on social media, a strong community culture, and a taste for risk, particularly in the USA. For example, in 2021, when 124 different memecoins were circulating in the market, it only took @elonmusk, the ingenious, innovative polytechnic graduate and billionaire, to publish a few tweets on Twitter (now X) to propel Dogecoin to the status of a sought-after asset. Since then, memecoins have become powerful indicators of retail sentiment and the behavior of most small cryptocurrency holders.
Moreover, while memecoins are perceived as speculative, some see them as a clear entry point into blockchains, as their low initial cost attracts interest and their growth potential fascinates many, especially since their value is based neither on technology nor on the community's ability to sustain the project, expand it, make it resonate, buzz, and grow!
Additionally, these are niche assets with high volatility that should be used with caution, as they can play a complementary role in a portfolio #Binance:
- Leverage effect on quick gains;
- Trend signal in the market cycle;
- Community catalyst, even stronger than traditional ones.
However, like any asset, risk management remains crucial.
