Moritz Draht“ “False trench warfare”
Let’s not kid ourselves: the crypto market is a lottery booth. Use case, whitepapers, GitHub entries – all well and good, but those who pretend that these properties play a role in investment decisions are lying to themselves in their pockets. For most investors of ”serious” cryptocurrencies, it is also about only one thing: yield.
And the addiction to memecoins is unparalleled. Short periods in which high profits are made: this and no longer remains the purpose of memecoins – and this is also completely legitimate. If the share price then falls, a “I’ve always said it” sounds from the envy-stricken camp of the omniscient, who never miss an opportunity to flaunt their supposed intellectual superiority over young and carefree investors who turn their horns at memecoins. This is embarrassing, because it is completely clear to everyone: a Shiba Inu is not made for eternity.
One of the rules of the game is that in the end some are richer than before and the rest pay the bill. If you find this reprehensible, don’t want to put yourself on a par with the Reddit swarm or just don’t want to drag your portfolio into the dirt with memecoins, you can’t fill out lottery tickets either. What often goes down: Memecoins not only give everyone the opportunity to fill the wallet in a short time, they also contribute to a wider crypto acceptance than many of the long-established coins do.
What is also often overlooked: Bitcoin would not be where it is today without the meme culture. Or where did the term “hodln” come from again?
David Scheider: “A Game with Fire”
Memecoins are in a bubble – there can be no doubt about that. The market capitalization of the currently largest memecoin, Dogecoin (DOGE), at the time of writing is about $ 9 billion. Nine billion USD! By comparison, this is more than local DAX companies such as Commerzbank put on the scales. In contrast to coins with dogs in the logo, however, these produce social added value. For example, they provide people with loans.
Memecoins, on the other hand, have no use case. They are memes, they are for entertainment. That’s okay. Memecoins also have their entitlement. However, it becomes problematic when more and more people jump on the bandwagon and make so-called “yolo investments”, i.e. bet immense sums on inflating the bubble. Because the bubble will burst – those who have not cashed out by then are smeared.
Bitcoiners invest in the No. 1 cryptocurrency in the expectation that the price will rise over the long term – precisely because of the fundamental properties of Bitcoin: censorship resistance, inflation protection and network security. Dogecoin, Shiba Inu and Co. do not meet any of these characteristics. No one plans to hold these coins for the long term. Everything that people accuse Bitcoin of, memecoins actually embody.
An investment is pure speculation. In other words, if you put your money in memecoins, you are playing with fire.