MEME (meme) has always attracted many participants in every crypto cycle due to its accessibility, viral spread, and attractive high-yield potential. The intersection of encrypted digital assets and Internet culture - Meme Coins.
Since May 2024, the Meme Coins market has soared in popularity, and some asset traders are focusing on allocating their investments in Meme Coins that have performed strongly in recent times, such as SHIB, FLOKI, PEPE, and APORK.
Since January 2024, institutional investors have also increased their attention to Meme Coins. According to statistics from the Bybit trading platform, as of April 2024, the value of Meme Coines held by institutional investors on Bybit has increased from US$63 million in January 2024 to US$300 million. The Meme Coins that have attracted the most institutional attention are the more liquid Doge Coin (DOGE) and SHIB.
As the encryption market comes out of its trough, various emerging Memes, cultures, ideas and ecosystems are emerging. Meme Coins is one of the few subdivisions that has always maintained activity (transaction volume, market value appreciation, social attention), and it has shown a significant warming trend recently.
While Meme Coins present opportunities, their risks should not be ignored. Many Meme Coins are prone to attracting users who are looking to get rich quickly and view investments as buying lottery tickets or participating in gambling.
At the same time, the Meme Coins market frequently sees pump-and-dump scams and market manipulation. According to a recent report by blockchain analysis agency CipherTrace, pump-and-dump scams accounted for 99% of all crypto asset fraud incidents in 2023, causing a cumulative loss of $2.1 billion. Therefore, for Meme Coins, investors should carefully examine its characteristics, such as the status of LP assets (whether they have been destroyed or held in a centralized manner), team allocation ratio, transaction taxes, and whether the smart contract has given up management rights.
Additionally, regulatory rules for Meme Coins remain unclear. In June 2021, the Thai Securities and Exchange Commission banned a group of digital assets that lacked a clear purpose or substance and whose prices were susceptible to manipulation by social media trends and influencers.
Another major concern is that Meme Coins could die out from a simple lack of interest, attention, and awareness, rather than from malicious attacks. Such investment losses could cause the community of holders to become hostile or indifferent.
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