The world of cryptocurrencies has long been a mystery to many people, but now a new trend has taken over: meme coins.
Meme coins are cryptocurrencies named after supposedly humorous characters, individuals, artwork, or trends.
An example is Dogecoin (DOGE), which was founded as a satirical payment system aimed at making fun of cryptocurrencies and featured a cartoon version of a cute Shiba Inu called Kabosu, which internet users found funny and cute. I did.
Other meme coins based on the cartoon frog Pepe (PEPE), Peanuts the Squirrel (PNUT), an orphaned squirrel that was euthanized by New York authorities, and Thailand, which went viral for its cheeky energy. Examples include MOO DENG, which is based on the pygmy hippopotamus.
Although these are very risky investments, their creators have the potential to earn millions of dollars. The market cap of meme coins is in the billions of dollars. As of this writing, DOGE’s market cap alone is $61 billion. PEPE is $16.9 billion. PNUT is $1.2 billion.
Its value and popularity have skyrocketed since the election of President Donald Trump, but now a leading cryptocurrency lawyer is warning of the dangers of jumping on board with this unusual trend.
James Lumsden KC, a leading cryptocurrency and digital asset litigator and founding partner at law firm Astrea, called memecoins a “dangerous illusion” and a “complete fraud.”
He told MailOnline: “I would stay away from them. That is a very dangerous illusion.
Meme coins have skyrocketed in popularity since Donald Trump won the US presidential election.
Meme coins are cryptocurrencies named after supposedly humorous characters, individuals, artwork, or trends, such as this Shiba Inu that was the inspiration for the Doge meme
Two-month-old baby hippo Mu Deng (pictured) was also the inspiration for the meme coin.
“They may be very popular for a while, I get that.
“This is a highly speculative financial financing and is almost completely at the mercy of the people who did it.
“I think this is a complete scam. There’s no value or purpose to it. I’m just as worried about them as I am about digital assets.
“I don’t think you can call them that at all, it depends on algorithmic social media interactions.
“That’s a very flimsy way of approaching the value of everything.
“It’s not the meme coins that attract people to the site, it’s what’s funny and what’s interesting.
“Meme coins only measure hits.” [a site or idea] I get it.
Memecoins can be created by anyone, but unlike traditional cryptocurrencies like Bitcoin, they cannot be mined. Instead, a finite number is released while the owner keeps a fixed amount.
James Lumsden KC (pictured), a leading voice in cryptocurrency and digital asset litigation and founding partner of law firm Astraea, called memecoins a “dangerous fantasy” and “a complete scam”
The number of people buying meme coins has skyrocketed since the creation of the Department of Government Efficiency (DOGE), headed by Elon Musk, was announced (pictured).
This is what Dogecoin looks like, inspired by a real Japanese Shiba Inu
Pepe the Frog is a cartoon character who inspired a meme coin with a market capitalization of billions of dollars.
This squirrel euthanized by New York authorities also escaped meme coins
If a memecoin goes viral and skyrockets in popularity, owners can sell it to generate income for themselves, but this could erase its value to investors.
One recent social media star who hinted at starting a memecoin is Hawk Tua Girl’s Hayley Welch. She made headlines for making a very risqué gesture during an interview during a night out.
Besides talking about bringing in merchandise, this could be a way for her to make money.
Ramsden added: “People who think this is a good thing will say, ‘If millions of people are following it, I can’t imagine someone deleting it.'” he added. But please take a look [Elon] Musk.
“It’s hard to see how things will go. Will someone stop publishing? or they sell [their stake in their own memecoin]. ”
Lumsden also suggested that there may be a question of who actually owns the idea behind meme coins.
“Intellectual property is very questionable. A lot of it comes from other sources,” he said.
One recent social media star who hinted at starting a memecoin is Hawk Tua Girl’s Hayley Welch (pictured). She made headlines for making a very risqué gesture during an interview on a night out.
‘[The creators] It will be carried out at the first indication that someone objects to the right to publish. ”
Meanwhile, Nawab Hussain, digital finance guru and director of Crypto Consultants UK, told MailOnline that memecoins are “emotionally driven” and that “80 to 90 per cent are just liquidity. It’s a robbery of people trying to make a quick buck.”
He further added that “meme coins are probably the most speculative from a cryptocurrency perspective.” As an investor, you need to be careful. ”
Still, the current trend is that the number of people buying meme coins has spiked significantly, especially since the election of Donald Trump and the announcement of the creation of Elon Musk’s Department of Government Efficiency (DOGE).
And while many may be sensing signs of speculative buying ahead of the NFT market collapse in 2022, for now the meme coin market is thriving.
