Memecoins: An Investment Trend Amid Risks

Crypto investors continue to invest in memecoins despite their inherent risks, according to a recent Kraken survey.

Key Findings

• Participation: 85% of surveyed U.S. respondents had invested in memecoins.
• Risk vs. Reward: 76% believe the potential rewards justify the risks.
• Credibility Boost: 44% think memecoins will improve the credibility of the crypto market.
• Performance Expectations: 42% expect memecoins to outperform other cryptocurrencies this year.

Motivations for Investing

• FOMO: Fear of missing out is a significant motivator.
• Recommendations: Input from friends and family also influences decisions.
• Entertainment Value: The fun aspect of memecoins attracts investors.

Recent Developments

Memecoins have recently made headlines for negative reasons, particularly the LIBRA token incident which resulted in a dramatic market cap loss from approximately $4.5 billion to a 90% crash.

Holder Demographics

• Investment Goals: 29% of holders aim for short-term gains; 23% seek diversification.
• Gender Insights: Women are more likely than men to invest in memecoins (86% vs. 84%).

Survey Details

Kraken conducted this survey on January 9, 2025, involving nearly 800 crypto holders in the U.S.

Read more: LIBRA Apparent Rug Pull Is Latest ‘Sordid Episode’ Emerging From Solana’s Memecoin Complex: Galaxy