Top 3 reasons why new Crypto investors must ignore Meme Coin allure

The meme coin class is an intriguing a part of the buying and selling trade, and its worth relies on web memes and investor demand. Lately, meme-themed cryptos’ standing has turned from unstable and low-value digital property to worthwhile alternatives as a consequence of their explosive rallies. Nonetheless, the hype appears to settle, and specialists imagine new crypto buyers should ignore them. Why? Let’s focus on this.

Meme Coin Information: Meme Period is Crumbling

The present market state of affairs isn’t favorable to any cryptocurrency. Each digital asset, from Bitcoin to altcoins, is dealing with a downtrend. Nonetheless, the downfall of the meme coin class started even earlier than this crypto market crash.

The worldwide meme cash’ market cap dropped greater than 140% from its $127.26 billion peak in January 2025, a transparent indication of its downfall. Even Donald Trump’s household launched meme cryptocurrencies, TRUMP and MELANIA, which didn’t preserve their efficiency, hinting at main points inside this class.

Elon Musk, who has supported these digital property for years, has warned about them. In The Joe Rogan Expertise podcast, Musk in contrast meme cash to on line casino chips, claiming that wishing for revenue with these cryptos is much like or as unrealistic as hoping to win at a on line casino.

In the event you anticipate to win at meme cash, you’re being silly. You’re not going to win with meme cash. Don’t sink your life financial savings right into a meme coin,” mentioned Elon Musk.

Nonetheless, this is only one half. Analysts imagine the meme coin hype is lifeless. One such important analyst identified three causes for this. Let’s focus on this.

3 Causes Why New Crypto Buyers Should Ignore Meme Coin Attract

In a current X put up, Crypto analyst Flood identified three most important points with meme-themed cryptos: the rising variety of rigged incidents, their efficiency, and hidden charges. General, the dealer has questioned why individuals are nonetheless buying and selling in these property, particularly after realizing all these dangers.

1. The Recreation is Rigged

Flood believes the meme coin market is strategically designed to learn insiders and early movers whereas leaving latecomers with losses. He added, ” The sport is and has been rigged for months,” discussing how insiders management liquidity and fluctuate token costs. Such incidents have left most contributors in loss.

The incidents have grown after the launch of Pump.enjoyable and related launchpads, which have created lots of or 1000’s of meme-themed cryptos day by day. Nonetheless, most failed. January knowledge discloses that just one% of 25,000 created tokens graduated or gained any liquidity.

2. Low Valuation & Uncommon Market Success

Not solely Flood, however many analysts imagine that many of the Pump.enjoyable launched cryptos by no means gained traction. He even claims that solely 4 out of the thousands and thousands of tokens on the platform had a market cap above $100M, not directly alleging it as a cash lure.

Speaking of market cap, even the highest meme cash like Dogecoin or Shiba Inu gained market traction as a consequence of social media hype. Nonetheless, even their restoration is tough to handle after this huge crash.

3. Extravaganza Charges

Flood added that crypto buyers not solely bear losses on their investments but in addition pay huge charges. He claims that over $1.5B has been extracted through charges from merchants making an attempt to purchase, promote, and launch meme cash.

Over $1.5B has been extracted through charges for execution

Though such charges exist for execution, a big portion goes to central entities and insiders, leaving merchants with even increased losses.

Key Factors To Word

Meme-themed cryptos thrived in 2024 amid extra liquidity and speculative euphoria. Nonetheless, actuality is catching up, because the meme coin market cap dropped by almost $74.5 billion in a month and a half.

It alerts that buyers’ pursuits are shifting from these hype primarily based cryptocurrencies. Though this class would face an uptrend with the best situations, buyers like Flood don’t advise this path for brand new buyers.