Memecoins
Here’s Why Meme Coins Remain a Top Choice for Investors Despite High Risk
In a recent interview with Coindesk, Switchboard co-founder Chris Hermida shared his thoughts on what influenced the cryptocurrency markets over the weekend and into Monday morning. He began by expressing a general tendency to underestimate weekend market movements. Chris said the recent selloffs were driven by news related to Mount Gox and the actions of the German Governmentwhich led to a general decline in market sentiment.
Asked about the current impact of the Mt. Gox news, Chris noted that the situation has been known for a long time, with people buying claims on Mt. Gox as early as 2017. The main question now is how many of those claim holders will choose to sell their assets.
Chris explained that It is unlikely that all security holders will immediately liquidate their holdings. While some selling is expected, he does not anticipate a massive selloff involving 50% or more of security holders. The current selling pressure is compounded by the German government’s liquidation activities and the negative sentiment in the cryptocurrency market.
Why are investors attracted to Meme Coins?
He added that many people find meme coins easy to understand and fun. Compared to others, it is an interesting coin for a wide audience within the market.
“I think a lot of it is because they are easy to understand and fun for a lot of people. Compared to other narratives, it’s a narrative that appeals to a broad audience within the ecosystem — not just speculators and builders, but also those who may not have been exposed to crypto before. It gives them a way to participate and find enjoyment in it,” he said.
On sustainability, he expressed uncertainty, but acknowledged that meme coins are attracting a new audience to cryptocurrencies. The hope is that they come for the memes and stay for all the other benefits.
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