In the hopes of making big money in a short period of time, investors turned at-scale micro-cap coins into high-risk. It abruptly increased the prominence of SafeMoon, Shiba, and Australian Safe Shepherd in the cryptocurrency industry. The sudden rise of dog and Elon Musk themed coins in a volume built many online memes in the market that gained a huge trading rate regardless of its small market caps that can be volatile for many investors.
Ethereum-Based Meme Coins
Ethereum-based meme coin Dogelon (ELON) is one concrete example of the buoyant nature of micro-cap coins. Ethereum-based coins managed over 40,000% in a single day even before going through a major modification or correction. The substantial rise in the digital assets after Ethereum-based coins were implemented was due to the tribute for Elon Musk and dogs led to the continuous increase of Dogecoin popularity along with the skyrocketing levels of trading volume attached.
Shiba Inu
Shiba Inu drastically increased its popularity in a matter of six months. It gained so much attention that it resulted in being listed in Binance, a reputable exchange listing in the cryptocurrency industry. However, buyers deserted the coin that led to a 58% drop in three days.
The increasing number of meme-based coins entering the market captured the attention of crypto investors who wants to earn a significant amount of digital assets in a short period of time. Investors are comparing the penny stock craze which is big on Wall Street. On a different note, the real question is, how can the rise of micro-cap coins influence the landscape of crypto and how can investors assess the risks of investing in something volatile?
The Impact of the Rise of Crypto Gambling
It is somehow perceived that investing in cryptocurrency is a gamble and however also an investment. There is a thin line between gambling and investing in cryptocurrency despite its buoyant nature. Crypto gambling is not merely just taking the risk of investing money in digital assets. It has a longer timeframe in contrast to gambling in a casino or online games. Crypto investment does not give you instant result compared to betting on a poker game or roulette wheel. Additionally, there is no constant or solid amount of losses or winning in crypto investments. Due to its volatile nature, value is always prior to change.
Crypto investment has a continuous data flow that investors can access to make wiser decisions in their digital asset investments. While some micro-cap coins have a sole and valid purpose for NTF which leads to new innovations and projects that give more opportunities for investors, some meme-based coins exist only for either making or breaking the deal.
Mainstream Backlash Crypto Versus Meme Coins
When Vitalik Buterin, the creator of Ethereum donated a large amount of meme coin collection shares amounting to $1.5 billion to non-profit organisations globally. Additionally, Buterin donated around $1.4 billion to India Covid-Crypto Relief Fund.
Buterin’s dog-themed coins appear as the leading name in the world of crypto, the large number of unsolicited donations from various investors around the world significantly made a large impact on specific micro-cap coins such as SHIB. This resulted in a 42.5% price decrease in a matter of 24 hours.
Many thought of Buterins mass sell-off meme tokens as a backlash against the growing number of micro-cap coins. Shiba Inu and DOGE popularity triggered Ethereum to increase fees leaving investors wanting to access their coins crushing the meme coin market.
The cryptocurrency market is continuously growing and gaining more interest from many. Despite its volatile nature, conducting thorough research earns investors more profit. It all depends on how investors play the game and flowing with the timing and ever-changing nature of crypto.