All the cryptocurrency biggies witnessed a sharp fall in the market cap in the past few days, these meme coins Dogecoin and Shiba Inu are no exceptions, they are experiencing a severe meltdown.
Crypto majors like Bitcoin & Ethereum, halving their value from the peak. Meme tokens including Shiba Inu as well as Dogecoins have plunged more than 70% from their peaks. Cryptocurrency investors who stacked up meme coins are finding this year’s journey so far pretty rocky. The crypto prices have become less breezy, as per the market experts.
What do experts say about Dogecoin and Shiba Inu investment?
Anshu Agrawal, Co-Founder, Flint commented that “Meme tokens were supposed to have certain designated use cases of their own. Unfortunately, these meme tokens have been more associated with online jokes than other software products that are sector originals.”
The performance and fame of these meme tokens depend on influencers’ social media support and hype, he says. The lack of exhilaration adds to the negative sentiments amongst investors. These factors, along with the proposal of a ban from the Central Bank of Russia, combined with the hawkish commentary from the US Federal Reserve are a few reasons that are hurting the sentiments of meme coin investors.
In addition, the United Kingdom, Spain, as well as Singapore regulators have tightened the rules on crypto-asset promotion. All these combined towards the downward trend of meme coins along with the whole crypto spectrum.
Praveen Kumar, founder and CEO for Belfrics Group commented that “When mainstream cryptocurrencies are on a bad run; meme tokens will be going through a much worse downfall because these coins are traded purely on sentiments as well as speculations.”
Other crypto tokens like MonaCoin, Dogelon Mars, DogeBonk, ERC20, Doge Dash, SafeMoon Inu, Dogs Of Elon, and Doggy have lost about up to percent of their value from the peaks.
As per Market experts, there is no guarantee if these coins are a good investment, although they can increase their overall value during the bull market. OR. During the trend events. Investment in them might spurt profits, however, they are highly volatile in nature. If you are willing to take the risk for the profits you can invest in these coins, however, you have to take the highly volatile nature into account, and also should realize that they have no inherent value.
These coins can be really valuable for faster transactions. Meme coins could be good investments if the community and the uses are strong. These coins can become a good bet for investors if they have value.
As per Market experts, meme coins are more of speculative bets, however, they should not be treated as an investment. Crypto coins, for example, Dogecoin, are inflationary coins that have an unlimited supply.
“Though they fundamentally have a meaning, they are just cultural coins as of now. People trade them because they like memes,” Sharma of Flint said.
A huge number of investors are holding as well as trading these tokens. The interest will remain for some time. As per Kumar of Belfrics “Investing in meme coins is not a good choice for long term investors as they do not carry intrinsic values.”
My take
From a personal perspective, I don’t mind investing a sum into cryptocurrencies, as despite the risk, there are profit percentages and returns that feel lucrative. When I mean sum, I don’t mean, taking nearly 50% of your investment money, putting it all into a single cryptocurrency, and hoping for it just rise and provide you returns. Nothing works like that, what I mean is that, as to how the world presently is and how it is going to be constructed in the future, it doesn’t look like crypto will be going out of business for quite some time. So, I would invest only such an amount that if I end up losing all of it, the loss would not leave me stranded and regretting.
That is just my take, I am not any financial adviser or a market expert, I’m just a guy on the internet, who is willing to test the waters.
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