Memecoins
Post-Bitcoin Halving Disappointment: 3 Meme Coins on the Verge of Collapse
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In most cases, the broader cryptocurrency market discussion follows the performance of Bitcoin (BTC-USD). After all, he is the most popular guy on the block and has use cases orders of magnitude larger than other cryptocurrencies. So when Bitcoin promises big news and under-delivers, the market as a whole suffers. Recently, this type of disappointment reared its head again when the hype around the Bitcoin halving the event proved insignificant. Investors have started selling everything from altcoins to meme coins to avoid potential losses.
Many bullish Bitcoin investors believed or potentially misunderstood that cutting mining rates in half would catapult its value. However, the overall value of the coin remained relatively unchanged in the month following the halving, returning around its new ceiling of $70,000. As a result, many meme coins that rely on the cryptocurrency industry’s attention have fallen back into their usual pump and dump cycles. Therefore, here are three meme coins to avoid as the Bitcoin situation gets more complicated.
GME Coin (GME-USD)
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You might think that a meme coin based on GameStop (NYSE:GME) would see an explosion considering the stock’s recent news. The story is the same for GME coin (GME-USD), however, just because the coin spiked on GME news doesn’t mean it has real value. GME coin states that it is a people’s currencywith the aim of providing training through its GME University to investors who are just starting to operate in the world of cryptocurrencies.
However, according to its website, the cryptocurrency has no discernible applications beyond being a commemorative coin for the GME meme saga. As such, this project will eventually end up in the bin, leaving eager investors burned.
Much like the company after which GME is named, the coin is nothing more than a tech meme, intending to profit from the hype and search engine optimization surrounding the GameStop news. Down 71% in the last seven daysthe coin is not worth holding long-term, but it makes for a great gaming machine during GME news periods.
Dogwifhat (WIF-USD)
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The premise of dogwifthat (WIF-USD) cryptocurrency is simple: it’s a dog in a hat. More specifically, it is the favorite dog breed in the cryptocurrency world, a shiba inu, who wears a knitted hat. This is all from a technological perspective, as money is simply a Solana (SOL-USD) network derivative available for purchase on a few different exchanges.
Some analysts have gone to great efforts to justify its existence, describing it as a community project intended to address the financial nihilism of the current generation. This description certainly has some philosophical merit considering the rising cost of living in the United States and stagnating wages amid record inflation.
However, from an investment perspective, it is difficult to see WIF as anything more than a social media-based program. Investors beware, just because WIF has seen some big moves based on popularity does not make it a stable long-term investment.
Popcat (POPCAT-USD)
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I have to admit that this one got my attention along with his website, which I found shamefully funny. Based on the 2020 Internet meme of a cat named Oatmeal, Popcat (POPCAT-USD) is a meme coin through and through. In its defense, the website openly states that the currency has no intrinsic value and is subject to speculative changes in value.
Since this coin is not trying to deceive anyone about its prospects, I think it is worth mentioning the design of its website, which involves global click competition. People from all over the world compete to see who can click the cat the most to make its signature crackling noise.
While this does not affect the value of the coin in any way, it is a great way to attract the internet’s attention to the platform. Despite this, I would put Popcat among the meme coins to avoid, as it won’t grow much unless the hype train hits the station. That said, you can compete for your country Here.
As of the date of publication, Viktor Zarev did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to InvestorPlace.com Guidelines for publication.
Viktor Zarev is a scientist, researcher and writer who specializes in explaining the complex world of technology stocks through a dedication to accuracy and understanding.