Memecoins
Post-Bitcoin Disappointment Halved: 3 Meme Coins on the Verge of Collapse
Source: Zarko Prusac / Shutterstock.com
More often than not, the broader discussion of the cryptocurrency market follows the performance of Bitcoin (BTC-USD). After all, it’s the hottest kid on the block and has use cases an order of magnitude greater than other cryptos. So when Bitcoin promises big news and fails to deliver, the market as a whole suffers. Recently, this kind of disappointment reared its head again when the hype around the Bitcoin halved the event proved unimpressive. Investors began selling everything from altcoins to meme coins to avoid a potential loss.
Many investors bullish on Bitcoin either believed or failed to realize that the halving of mining rates would catapult its value. However, the coin’s overall value remained relatively stable in the month following the halving, returning around its new high of $70,000. As a result, many meme coins that rely on the crypto industry’s attention have fallen back into their usual cycles of pumping and dumping. As such, here are three meme coins to avoid as the Bitcoin situation becomes more complex.
GME Coin (GME-USD)
Source: Shutterstock.com/EchoVisuals
One might think that a coin based on Stoppage of play (NYSE:GME) would see an explosion given the recent news of the title. The story is the same for GME Coin (GME-USD), however, just because the coin has been featured in GME news does not mean it has any real value. GME Coin claims it’s a people’s coinaiming to provide education through its GME University to investors who are new to crypto.
However, according to its website, the crypto has no discernible application aside from being a commemorative coin for the GME meme saga. As such, this project will ultimately end up in the trash, leaving enthusiastic investors burned.
Much like the company from which it takes its name, GME coin is nothing more than a technology meme, intended to profit from the hype and search engine optimization surrounding the GameStop news. Down 71% in the last seven daysthe coin is not worth holding for the long term, but is a great slot during times of GME news.
Dogwifhat (WIF-USD)
Source: Chinnapong / Shutterstock
The premise of dogwifhat (WIF-USD) cryptocurrency is simple: it’s a dog in a hat. More specifically, it’s the crypto world’s favorite breed of dog, a shiba inu, wearing a knit hat. This is all from a technological point of view, because the part is simply a Solana (SOL-USD) network derivative available for purchase on a few different exchanges.
Some analysts went great efforts to justify its existence, describing it as a community project intended to combat the financial nihilism of today’s generation. This description certainly has some philosophical merit given the rising cost of living in the United States and stagnant wages amid record inflation.
However, from an investment perspective, it is difficult to view WIF as anything other than a social media-driven program. Investors beware, just because WIF has seen significant moves related to its popularity does not mean it is a stable long-term investment.
Popcat (POPCAT-USD)
Source: Chinnapong / Shutterstock
I admit that this one caught my attention with its website, which I found shamefully amusing. Based on the 2020 internet meme of a cat named Oatmeal, Popcat (POPCAT-USD) is a coin through and through. In its defense, the website openly states that the coin has no intrinsic value and is subject to speculative changes in value.
Because this piece isn’t trying to fool anyone about its prospects, I think it’s worth mentioning its website design, which involves a global click-through competition. People from all over the world compete to see who can click the cat the most to make its signature noise.
While this has no impact on the value of the coin, it is a great way to attract internet attention to the platform. Despite this, I would put Popcat among the coins to avoid, as she won’t grow much unless the fashion train arrives at the station. That said, you can compete for your country here.
As of the date of publication, Viktor Zarev did not hold (neither directly nor indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publishing Guidelines.
Viktor Zarev is a scientist, researcher and writer specializing in explaining the complex world of technology stocks with a focus on accuracy and understanding.