Memcoins: a scam or an opportunity to make money?⠀

Memcoins: a scam or an opportunity to make money?
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New cryptocurrencies are thought to be created for the sole purpose of changing the global financial system and bringing a decentralized future closer. But sometimes developers just want to have fun and create meme coins.

Meme Сoins are cryptocurrencies inspired by Internet memes are called. This is a prime example of a financial asset that has no fundamental value and grows only because of the community.

The very first meme coin, Dogecoin (DOGE), appeared thanks to a meme of Elon Musk with a Shiba Inu dog. Dogecoin traded at $0.0003-7 in late 2013 and reached $0.74 in May 2021.

At the time of this post, DOGE is capitalized at about $11 billion, which means the project is worth more than the U.S. tech company Dropbox.

What are the dangers of meme coins?

• high volatility
• “rug pull”.

Rug pull in crypto is a fraudulent scheme in which developers create a token paired with standard cryptocurrencies like ETH or USDT, place the token on a decentralized exchange and withdraw all funds after purchase by investors.

But is it worth investing your money in meme coins? This is a question for which there is no simple answer. As with all cryptocurrencies, investing in meme coins comes with high risk.