Binance Research: The Meme Coin Frenzy May Marginalize Projects with Substantial Technical Goals
ChainCatcher news, a new report from Binance Research warns of the high risks in the Meme coin market, showing that 97% of Meme coins fail or become inactive shortly after their launch.
The report also reveals widespread manipulation, where organized groups meticulously plan to pump and dump coin prices, leaving everyday investors to bear most of the losses. Despite the promise of high returns from Meme coins, the report warns that these volatile assets are often fraught with traps.
The report attributes the surge in popularity of Meme coins to economic pressures, particularly among the younger generation facing stagnant wages and rising living costs. However, the allure of high returns is misleading, as most Meme coins lack intrinsic value or technological innovation, relying instead on viral internet spread and speculative hype.
Finally, the report notes that the explosive growth of Meme coins may distract attention from projects focused on advancing blockchain technology, potentially marginalizing projects with substantive technological goals. (CryptoSlate)