Liang @ degencast.wtf 🎩
@degencast.eth
From perplexity: People buy meme coins for several reasons: 1. Potential for high returns: Some investors are attracted to meme coins due to their potential for explosive price growth in a short period. The success stories of early Dogecoin or Shiba Inu investors have fueled this perception[1][3]. 2. Low entry barrier: Meme coins are often very cheap, allowing investors to purchase large quantities for a small amount of money. This can be psychologically appealing, especially to younger or novice investors[1]. 3. Community and entertainment: Buying meme coins often means joining a vibrant online community. Many investors enjoy the shared experience, humor, and sense of belonging that comes with participating in meme coin culture[2][4]. 4. Speculation and gambling: Some treat meme coins as a form of gambling, hoping to profit from short-term price movements driven by hype and social media trends[3].
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Liang @ degencast.wtf 🎩
@degencast.eth
5. FOMO (Fear of Missing Out): As meme coins gain popularity and media attention, some investors buy in due to fear of missing out on potential gains[3]. 6. Celebrity endorsements: High-profile figures like Elon Musk have promoted certain meme coins, attracting more investors[1][4]. 7. Simplicity: Compared to other cryptocurrencies with complex use cases, meme coins are often seen as more straightforward and accessible to understand[4]. 8. Learning experience: Some use meme coins as a low-stakes way to learn about cryptocurrency trading and blockchain technology[5]. However, it's crucial to note that investing in meme coins carries significant risks. They are highly volatile, often lack fundamental value or use cases, and can be subject to manipulation. Many meme coins have lost substantial value after initial hype periods, leaving late investors with significant losses[3][5]. Potential investors should approach meme coins with extreme caution and never invest more than they can afford to lose.
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Liang @ degencast.wtf 🎩
@degencast.eth
Citations: [1] https://www.business.rutgers.edu/business-insights/thought-leadership-why-are-meme-coins-so-popular-understanding-how-they-work-and [2] https://www.fool.com/investing/2024/04/23/confused-by-or-afraid-of-investing-in-memecoins-tr/ [3] https://www.forbes.com/advisor/investing/cryptocurrency/what-are-meme-coins-are-they-worth-investing-in/ [4] https://www.coindesk.com/markets/2021/12/30/the-psychology-of-meme-coins-from-actual-investors/ [5] https://www.investopedia.com/meme-coin-6750312
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Aaron｜183Aaros.eth🔵🔴
@183aaros.eth
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@franksolcoin
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