Nikita Zubarev is the lead analyst of Bestchange.ru service, that unites most of the possible crypto exchange options in one place and allows you to choose the one with best rates and most feedback. He has recently shared his thoughts on the current situation and we are pleased to now share them with you.
Nikita reminded us about meme-coins, which aren’t usually taken seriously for some reason. However, his arguments were pretty strong and you might agree with his opinion.
Disadvantages that aren’t that dis
Meme coins differ from the other tokens completely and you can mostly see that if you look at the main reasons they change rates.
Relying on tweets
Even though that could sound somewhat stupid it really is so. Most meme-coins are just scalping from Elon Musk’s success and tend to go up in price, when the main “crypto-guru” declares some new crazy statements as he does the whole time. The community participants seem to have a quick response to all the news/updates and thoughts Musk declares and can always provoke some market movement. We should also remember that those have…
No utility
It might not be taken as a positive aspect in terms of coin success, but meme-coins are somehow still popular and hold their value. All that is due to the social part of those. However, unlike the regular crypto cycle with the most utilised project/ having the most users, social dependent projects are now in the lead because they have no connection to market situation at all.
The real problem
Risk prediction here is basically none because no one knows what Musk will decide on doing next. Whether it’s going to be Shiba promotion using the Moon satellite program sponsorship (a real case) or a project, naming a coin after Elon’s dog Floki and trying to get all the hype from being mentioned by him in Twitter (hello, Floki Inu). Quick reaction is key here.
Overall…
Speaking about middle-term investments meme-coins might be just the right thing. Considering the lack of the so fundamental for most tokens utility these only rely on social activity, rumours and news therefore showing relative stability in terms of liquidity.
