Why do old investors fear memes, while bosses love them?
Memes were once popular, but their wild price swings have made many veteran investors hesitant.
Let’s dig deeper into the reasons:
Risk vs. Reward:
Of the 30 memes launched by Solana last month, the average decline from their all-time highs was 94%. Even the best performing coins have suffered declines of more than 70%, with some plummeting by more than 99%. This extreme volatility has deterred many “old investors” from getting involved easily.
The appeal of early success:
The original meme, DOGE, was a huge success, sparking a slew of imitators. While these imitators initially performed well, subsequent market corrections caused their value to plummet, leaving investors using highly leveraged strategies facing a situation where their funds were blown up or severely reduced.
So why do smart bosses prefer memes?
High return potential:
In the last bull run, meme coins performed very well, occupying many seats in the list of 100x coins.
Market manipulation:
The current market is mainly controlled by institutions, and Bitcoin and major public chain tokens are considered to have a bleak outlook, so smart investors turn to meme coins with weaker narratives to reduce the risk of being influenced by institutions.
Investment strategy:
Pick potential memes: Not all memes are worth investing in, and those related to specific sectors or major news events are more likely to bring returns.
Follow market dynamics:
Currently, meme coins worth paying attention to include Floki, Bonk, Pepe, and Wif.
I wish you all the right choices! ! !
