Memecoins
Memecoins would attract hedge funds with massive returns
- Memecoins are back and producing crazy returns that even hedge funds can’t ignore.
- Coins like Dogwifhat and Baby Doge Coin have soared amid bitcoin’s explosive first-quarter rise.
- Some argue that memecoins are here to stay this time around as they transform into something more than a joke.
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Memecoins have made a comeback amid Bitcoin’s big rally this year, and with skyrocketing returns in the highly volatile crypto market sector, some hedge funds have jumped in, Bloomberg reported.
California hedge fund Stratos has launched a fund that holds Dogifwhat, a token whose mascot is a dog in a beanie. The coin helped propel the fund to a 137% return in the first quarter, according to Bloomberg.
Meanwhile, sources told the outlet that Brevan Howard, the New York-based alternative investment manager, entered the memecoin market with a “tiny” investment.
Coins like Dogwifhat and Baby Doge Coin have soared historic records last month amid bitcoin’s explosive rise in the first quarter of the year.
Pantera Capital Crypto Fund wrote in a recent note that joke tokens are here to stay among the opportunities for mind-blowing winnings.
Memecoins are easy to create and trade, with decentralized financial exchanges seeing increased activity in the space, while the tokens have also started to trade more on traditional exchanges like Gemini.
Hedge fund Lekker Capital founder Quinn Thompson told Bloomberg that memecoins are just another chapter in the “retail trading frenzy” saga, akin to GameStop and the meme stock craze on traditional markets.
But Pantera argued that while many memecoins started as a joke, they grew into something bigger, serving as a gateway to a shared belief system or community.