Memecoins are like Powerball for crypto fans: Matrixport exec
For a lucky few, memecoins can provide a "path to riches", but for others they are simply a "risky bet ", Markus Thielen of Matrixport tells Cointelegraph.
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Memecoin buyers are playing the crypto equivalent of Powerball – with many 'playing' in hopes of winning 'life-changing money', but only a few will walk away with the jackpot, says the Head of Matrixport Research.
Memecoins have seen a huge upsurge over the past week. Crypto tokens such as Pepe (PEPE) and Milady (LADYS) have shown staggering price increases despite each having little to no discernible utility.
Speaking to Cointelegraph on May 10, Matrixport's Markus Thielen suggested that some memecoin buyers are similar to those entering the lottery.
"There are many studies on how most people from lower socio-economic classes play the lottery [...] because it is their way out of their lower economic class", a- he said, adding:
"People who speculate in the lottery are trying to make money very quickly, and I think that's very similar with crypto."
One memecoin that has caught the attention of enthusiasts recently is PEPE, a cryptocurrency that benefits from the "Pepe the Frog" meme. It launched on April 14 and hit its peak market cap of $1.83 billion a few weeks later on May 5.
The token's price fell almost as fast as it rose, however, dropping 57% from its peak in just five days, according to CoinGecko, which puts its market capitalization now well below $1 billion. dollars.
Pepe token price since its launch on the 14th april . Source: CoinGeckoThe "entertainment" factor of buying memecoins should not be overlooked, however.
Dr. Anastasia Hronis, c...
For a lucky few, memecoins can provide a "path to riches", but for others they are simply a "risky bet ", Markus Thielen of Matrixport tells Cointelegraph.
Interview
Join us on social networks
Memecoin buyers are playing the crypto equivalent of Powerball – with many 'playing' in hopes of winning 'life-changing money', but only a few will walk away with the jackpot, says the Head of Matrixport Research.
Memecoins have seen a huge upsurge over the past week. Crypto tokens such as Pepe (PEPE) and Milady (LADYS) have shown staggering price increases despite each having little to no discernible utility.
Speaking to Cointelegraph on May 10, Matrixport's Markus Thielen suggested that some memecoin buyers are similar to those entering the lottery.
"There are many studies on how most people from lower socio-economic classes play the lottery [...] because it is their way out of their lower economic class", a- he said, adding:
"People who speculate in the lottery are trying to make money very quickly, and I think that's very similar with crypto."
One memecoin that has caught the attention of enthusiasts recently is PEPE, a cryptocurrency that benefits from the "Pepe the Frog" meme. It launched on April 14 and hit its peak market cap of $1.83 billion a few weeks later on May 5.
The token's price fell almost as fast as it rose, however, dropping 57% from its peak in just five days, according to CoinGecko, which puts its market capitalization now well below $1 billion. dollars.
Pepe token price since its launch on the 14th april . Source: CoinGeckoThe "entertainment" factor of buying memecoins should not be overlooked, however.
Dr. Anastasia Hronis, c...
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