Memecoins
Venture capitalists and hedge funds bet big on Meme Coin Mania
Prominent hedge funds and venture capital firms, according to a Nasdaq Report, started investing in meme coins. These digital assets were once ridiculed but are now considered to have strong growth potential.
For example, Stratos, backed by Mark Andresseen of Andresseen Horowitz, and Pantera Capital, a crypto-focused hedge fund, invested in meme coins Dogwifhat (WIF) and Shiba Inu (SHIB), respectively.
Even small investments can yield astronomical returns. According to the report, Shiba Inu has gained a staggering 221% over the past three years during its 2021 bull run, making early investors millionaires overnight for a short period of time. Moreover, the lower the market capitalization of meme coins, the higher the possible profits, such prospects are tempting for wealthy investors.
Nevertheless, meme coins are very volatile and risky; many will likely crash and burn, analysts say. Still, if professional money managers can calculate the risks, the upside potential of these digital memes seems too good to ignore.
In this coin mania craze that has taken over the crypto world; institutional investors may yet strike gold or chase another big bubble. One thing is for sure though, coin fever is not over.
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