- According to a survey, most investors invest in meme coins for fun while others do so due to their potential for massive price gains.
- The report further mentions that adoption and real-world use cases are part of the factors for future growth.
Meme coins like Dogecoin, Shiba Inu, and Floki have gained massive popularity this year with the likes of PEPE creating millionaires overnight. However, others think the assets are designed to only enrich the creators. A global survey of 1503 crypto investors was, therefore, conducted to ascertain the potential of these coins in the market.
Per the results, 70 percent of the respondents think meme coins are scams. This means 30 percent of respondents believe that the asset class is safe for investment. The report explains that the majority of the respondents only find the coins profitable at the beginning, but later loses all of their gains.
Also, 73 percent of investors think that investing in these coins is more or less like gambling. 51 percent do little research on them before investing.
Many crypto capitalists also believe that investing in meme coins is like gambling. However, this is mostly the case because many meme coin investors don’t do enough due diligence before purchasing the tokens. Our survey revealed that 51% of meme coin investors only research for less than 60 minutes before investing. Such high-risk investments require more thorough research, but 55% of investors who do little research prior to investing say they rely solely on luck when making financial decisions. This explains why investing in meme coins feels like casual betting.
More Details on Investor’s Perception of Meme Coins
Another interesting discovery was that 69 percent of the respondents invest in meme coins for fun. 64 percent of these respondents admitted that high-profit potential is their main reason for purchasing these assets. 61 percent also claimed they invested out of curiosity. Another observation was that 48 percent of those who invest for fun also consider coins like Dogecoin as a long-term investment.
According to the research, investors consider some factors before they invest in meme coins. 41 percent said that they consider its popularity. 24 percent said they consider its community activities and 38 percent consider social media activities. The respondents also spoke about their fears about investing in the coins.
64 percent of them raised concerns about too many scams and rugpulls. 58 percent are also concerned about high volatility and risk. 33 percent also raised concerns about a lack of trust in meme coins as a legitimate investment. 55 percent of the respondents admitted that they doubt the future of meme coins.
The report further establishes that the future of meme coins is not clear.
The leading cause of the ambiguity surrounding meme coins is their unspecified use cases. According to 32% of investors, meme coins can have some practical use cases, but their impact will be limited. Another 30% of investors believe that meme coins have no practical use cases and will eventually fade away. However, only 28% are most critical, stating that meme coins lack inherent value and are prone to market manipulation and scams.
For now, the crypto market is gathering momentum ahead of Bitcoin halving next year and could stage a rally by the end of the year. The coins could likely respond to the positive growth of the entire market. However, the degree of their growth may depend on some factors such as practical use cases, adoption, and the explosion of the crypto market in general.
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