Do you know to many memecoins are not good for the crypto industry and this is what currently happening with the crypto market and this is not good, this is directly harming the altcoins. Every famous personality wishes to launch memecoin and this is where the problem is created. According to a poll, politically themed memecoins like TRUMP, LIBRA, and CAR drew a lot of new cryptocurrency investors but also caused disappointment and large losses.
Memecoin losses forced 21% of new crypto investors to leave
Almost 80% of 1,066 cryptocurrency investors surveyed by Chainplay in partnership with Storyable bought presidentially backed memecoins including TRUMP, LIBRA, and CAR. Approximately 37% of these investors were first-time purchasers drawn to memecoins by its viral marketing and political significance. However, following their experience with these coins, over 21% of these investors "have left crypto altogether."
Regarding the influence on the mindsets of novice investors, the research report stated:
This implies that these memecoins have led to a great deal of disillusionment rather than encouraging sustained market participation. Many newbies may have been turned off by the high volatility, quick pump-and-dump cycles, and lack of long-term value.
investors in memecoins that have received presidential approval are losing money
The presidential-approved memecoins have suffered a sharp decline in value relative to the US dollar, resulting in significant losses for holders, notwithstanding the initial excitement surrounding their individual releases. The results show that two-thirds of investors in memecoins that have received presidential approval are losing money.
As of February 19, around 560,000 (52.3%) TRUMP investors had lost money, with roughly 545,000 of them suffering losses of up to $10,000, according to the study's statistics. Over $1 million was lost by another 287 TRUMP investors, bringing their total losses to $3.6 billion. According to the data, over 101,000 LIBRA investors lost up to $10,000, and three-quarters of investors experienced losses. Remarkably, the data indicates that around 36 LIBRA investors profited more than $1 million, whilst 26 investors lost more than $1 million.
first-time buyers have completely shunned cryptocurrency due to its high risk
The study report concluded by pointing out that the results demonstrate the potential for widespread participation in memecoins linked to political figures. These, however, expose investors to the market's speculative nature, and a sizable percentage of first-time buyers have completely shunned cryptocurrency due to its high risk.
The study came to the conclusion that "this is a worrying trend, as widespread negative experiences may slow widespread adoption of and trust in digital assets." Your opinion matters a lot that is why you should speak up in the comment area below the post. Loving my content and wanna show some support? please share this on scoial media and also upvote and donate on this content thanks a lot have a good day.
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