Research: Is Memecoin still worth investing in? Will Memecoin boom or crash in the future?

Original: ChainPlay "State of Meme Coin", compiled by Odaily Planet Daily Jessica.

Is MemeCoin still worth investing in? While many of these coins are fun, trendy and hyped, making them potentially highly profitable assets, some MemeCoins can be money traps. But which scenario is more likely?

In order to answer this question, we conducted a survey of 1503 cryptocurrency investors around the world. The main purpose of the study was to assess the potential of these tokens in the market. The survey included investment sentiment, investment ratio and investor profile disclosure, mainly Found the following:

Investing Sentiment

63.9% of investors would buy MemeCoin and 36.1% would not, representing mixed sentiment towards these assets.

1. Only 30% of cryptocurrency investors consider Memecoin to be a safe investment. Most people think these coins are scams, but not in the literal sense. Their point of view leans more towards the unpredictability of the value of these coins. 70% of the investors surveyed believe that Memecoin will generate a lot of profits at first, but then the value will drop significantly, or even drop completely. In fact, 53% believe they can profit from Memecoin before the price crashes;
2. Many crypto capitalists also think investing in Memecoin is like gambling. However, this is the case mainly because insufficient due diligence was done prior to the transaction. According to the survey, 51% of Memecoin investors did less than 60 minutes of research before investing. Such high-risk investments require more thorough research, yet 55% of investors who do little research before investing say they rely entirely on luck when making financial decisions. This explains why investing in Memecoin feels like casual gambling;

3.69% of investors said that investing in Memecoin is for fun;

4. 48% of global investors who buy Memecoin for fun see it as a long-term investment. Hence, such investors spend the most money on these interesting coins. In general though, 79% of investors view Memecoin as a long-term investment due to its potential for long-term gains. These investors acknowledged that the value of tokens could fluctuate once the hype around them fades. However, they believe that these assets will achieve more stable prices over time and even have the potential for long-term gains;

5. When Memecoin investors do their research before buying an asset, they focus on: popularity (41%), social media activity (38%), and community activity (24%);

6. When it comes to Memecoin, concerns exist: scams or rugpulls (64%), high volatility and risk (58%), legit (38%);

7. Investors are highly skeptical about the future of Memecoin. As many as 55.13% of investors surveyed are uncertain about the future of these tokens. This uncertainty mainly comes from the following factors:

Meme Coin Investor Profile

According to the survey, only one-fifth of investors in the world have joined cryptocurrency because of Memecoin. This means that Memecoin is not the only driving force behind overall cryptocurrency adoption; 32% of users have invested in Memecoin for less than a year.

Investment Allocation: Due to the volatility and unpredictability of Meme coins, only 8% of investors invest more than 25% of their cryptocurrency portfolios in these coins, indicating a cautious risk appetite and a preference for diversification.

Investment research: 51% of investors do less than 60 minutes of research before investing

Will Memecoin boom or crash in the future?

The future of Memecoins is uncertain, mainly due to their undetermined practical use cases. 32% of investors said that Memecoin could have some real use cases, but its impact is limited. Another 30% of investors believe that Memecoin has no real use case and will eventually disappear. However, only 28% were critical, arguing that Memecoin lacks intrinsic value and is vulnerable to market manipulation and scams.

Key drivers for MemeCoin growth in 2023: adoption and application of AI; more practical use cases or real-world applications; growing popularity among younger generations; overall rise in the cryptocurrency market.

People are skeptical about AI-generated Memecoins and their future potential.