it’s a story repeats itself over and overbut people keep falling for greed and greed make money easily. Mostly when the market is bustling and money is flowing happily, but also weak timesas we have been for months and like what’s left.
We’re talking about the phenomenon. memecoins or shitcoins, possibly the most polluting and intoxicating phenomenon in the cryptocurrency industry, along with hacks. Recently, PEPE, a token created with the image of the popular internet meme Pepe the Froga green anthropomorphic frog with a humanoid body, experienced spectacular price increases attracted the attention of less experienced investors.
He’s not alone. Yesterday my lady (LADYS), another memecoin from the anonymous collection of anime avatars nonfold tokens (NFTs), grew 5250% in just 24 hours. As he has done so many times with celebrities, it happened later. dogecoindoes not improve Elon Musk Promote it on Twitter. And in the last few hours, it has skyrocketed. SpongeBob Coin (SPONGE), with a rally of +4.250%.
The phenomenon of memecoins or shitcoins
In recent years, cryptocurrencies have gone from being a secret to a popular investment phenomenonleads to a large number of digital currencies beyond pioneers such as bitcoin anyone ethereum. In this expanding universe, two categories that are practically anything have generated equal interest and discussion: memecoins and shitcoins.
This memecoins These are cryptocurrencies based on internet memes and have value largely due to their popularity on social media rather than underlying technology or utility. The best known example of this dogecoinwhich started as a joke and now has a market cap of billions of dollars. But there are many more that are of great popularity, for example shiba inu anyone floki.
This shit coinsOn the other hand, refer to these accepted coins or cryptocurrencies in a pejorative way (English is crap). worthless, useless or misleading.
Even though these coins are making big gains in a short time, the volatility and lack of regulation, huge losses for individual investors. One of the most notorious cases of recent years was the token case, which emerged in the heat of the success of the Netflix series.Squid Game“.
like a casino, players can win sometimes, but in the long run, the house always wins. So who is “home” in the memecoin and shitcoin world?
cryptocurrency developers
Developers of these cryptocurrencies are usually from initial coin sales or ICOs (Initial Coin Offerings). By issuing a new coin, the creators of the coin can hold a significant amount of the total supply, which can become extremely valuable. if the currency gains popularity.
However, this can lead to price manipulations and the “pump and dump” accusation (pump and dump), where prices are artificially inflated before being sold for profit.
Exchange owners
The largest exchanges or cryptocurrency exchange platforms Binancethey make money from memecoins and shitcoins whether their value goes up or down.
it is because charge for every transaction are done on their platform, so the more trading activity they have, the more profit they make. They can also benefit from listing new coins by charging the developers’ listing fees. Remember that in the business world, no one does anything for free.
Influencers and Promoters
This influencers Social media and cryptocurrency supporters are another group that often takes advantage of this. speculation around memecoins and shitcoins. Some may take money to promote certain coins to their followers, which can create artificial demand.
Others can buy large sums of cheap currency and then “pumping” its value via promotion to “sell” your coins only when the price goes up.
Individual investors pay for the lot
For individual investors, memecoins and shitcoins may seem like an opportunity to make quick money. In reality, however, the real winners are often the developers, exchange owners, and the influencers who support them. As with any investment, it is very important. do extensive research and understand the risks before investing.
Investors should be especially careful when it comes to Memecoins and Shitcoins. lack of transparency, high volatility and possibility of manipulation from the market.
A high risk investment
It is important to note that: investing in cryptocurrenciesIn general, it should be considered as one. high risk investment. Price fluctuations can be extreme and rapid, meaning that traders can lose all their money in a short time. Next to you lack of regulation and supervision Many aspects of cryptocurrencies mean that it is at a high level. risk of fraud and manipulationand in recent months it examples are more than enough.
Despite these caveats, the lure of possible quick wins may be irresistible to some. However, as with gambling, it is important to remember that: The chances of winning big are extremely low and in most cases the real profiteers are the people behind the scenes who promote the currency and profit from hyperbole and speculation.
Could be memecoins and shitcoins exciting and attractive for investors because of its high return potential. But the truth is that these coins are extremely risky and most retail investors more likely to lose Money before you win. Therefore, it is very important for investors to approach these types of coins with caution, do their own research, and fully understand the risks before investing their funds in them.