Memecoins are associated with high-risk levels owing to their roots in memes and Internet humour.
Many unqualified investors typically make blunders that lead to hefty losses Despite their immense profit potential.
On-chain data showed that 15 out of 1.7 million meme coins experienced long-term success, with almost all meme coins failing in the long term
It is shocking to learn that 76% of influencers advertise dead meme coins, which are tokens that have lost more than 90% of their value.
According to CoinWire report, 86 per cent of influencer-promoted meme coins saw a 10X decline in value after three months. Additionally, only 1% of influencers have been successful in promoting a meme-coin that has improved tenfold.
Here are some of the Pitfalls
Pump-and-Dump Schemes: Pump-and-Dump schemes pose a danger as they may be used to manipulate the meme coin market.
Coin promoters rely on coordinated buying to encourage people to buy the coin and then sell the coin for a profit leaving people…