Yonathan Lapchik, CEO of blockchain and crypto business SUKU, encouraged the crypto community to pay attention to meme coins that began as jokes, such as Pepe Coin (PEPE) and Dogecoin (DOGE).
PEPE's rise from a joke to a semi-established project perfectly captures the excitement and unpredictability that comes with this type of digital asset. These coins may pique the interest of many individuals, but they may also damage the general public's knowledge of cryptocurrency.
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Meme currency, which was first popular as a hilarious asset, is now functioning as a portal for companies to enter the world of Web3 technology, which is democratizing the crypto industry. This lack of utility, along with the possibility of market manipulation, raises questions regarding long-term viability and the influence on public perception.
The attractiveness of meme currency, which combines online and gambling humor in order to appeal to a diverse population while promising large rewards. In this sense, meme coins level the playing field for people who were previously uncomfortable with the cryptocurrency market. This is not to say that investing in meme currencies is a good idea.
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The unfortunate downside of meme coin is that its price is mainly affected by hype rather than technological progress or practical application, resulting in dramatic price volatility and potentially massive losses for investors.
The fundamentals of these assets are frequently called into doubt. Unlike traditional blockchains like Bitcoin or Ethereum, many Meme Coins have no intrinsic value or defined use cases, therefore their price is mostly determined by frenzy rather than technological innovation or real-world utility.
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The lack of regulation also allows for pump-and-dump scams, in which significant influencers and investors intentionally boost prices before selling their holdings, causing ordinary investors to suffer.
Meme coins' lack of utility raises concerns about their long-term viability. Many doubters see it as a speculative bubble with the potential to undermine the legitimacy of the entire cryptocurrency sector.
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If meme coins continue to garner attention, it may give a justification for regulators to enforce stringent rules, stifling the expansion of the crypto industry.