Meme coin's rise is often driven by ponzi schemes, where:
New Investors Fund the Increase:
Prices increase only when new investors enter. False Profits: Profits are only enjoyed by initial investors, the rest are trapped in "bagholding".
Mere Hype:
The increase is not due to intrinsic value, but rather momentary hype.
Conclusion:
Meme coins offer the potential for big profits, but come with equally big risks. Conduct in-depth research and manage risks carefully before trading meme coins. Remember, hype is not a guarantee of profit.
Disclaimer:
This information is not financial advice. Always do your own research before investing.