A new report from Binance Research warns of the high risks of the meme coin market, showing that 97% of meme coins fail or become inactive shortly after launch.
The report also reveals widespread manipulation, where organized groups orchestrate plans to pump up the price of coins and then sell them off, leaving everyday investors with most of the losses. Although meme coins promise high returns, the report warns that these volatile assets are often full of pitfalls.
The report attributes the surge in meme coins' popularity to economic pressures, especially among younger generations facing stagnant wages and rising living costs. However, the appeal of high returns is misleading because most meme coins lack intrinsic value or technological innovation, but instead rely on internet virality and speculative hype.
The report concludes that the explosive growth of meme coins may distract people from projects focused on advancing blockchain technology, and projects with substantive technical goals may be marginalized. (CryptoSlate)