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Post-Bitcoin Halving Disappointment: 3 Meme Coins on the Verge of Collapse
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Most of the time, the broader cryptocurrency market discussion follows the performance of Bitcoin (BTC-USD). After all, it’s the most popular kid on the block and has much larger use cases than other cryptocurrencies. Therefore, when Bitcoin promises big things and doesn’t deliver, the market as a whole suffers. Recently, this kind of disappointment resurfaced when the hype about the Bitcoin halved the event ended up being unimpressive. Investors began selling everything from altcoins to meme coins to avoid a potential loss.
Many investors bullish on Bitcoin believed or potentially misunderstood that halving mining fees would catapult its value. However, the coin’s overall value has remained relatively stable in the month since the halving, with it back to the new ceiling of $70,000. As a result, many meme coins that depend on the crypto industry’s attention have returned to their usual pumping and dumping cycles. As such, here are three meme coins to avoid as the Bitcoin situation gets complicated.
GME Coin (GME-USD)
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One would think that a meme coin based on GameStop (NYSE:GME) would see a boom considering the recent news about the stock. The story is the same for GME Coin (GME-USD), however, just because the coin spiked on GME news doesn’t mean it has any real value. GME Coin claims that it is the people’s currencyaiming to provide education through its GME University for investors who are just starting out in crypto.
However, the crypto has no discernible applications according to its website, other than being a commemorative coin for the GME meme saga. As such, this project will end up in the trash, leaving anxious investors burned.
Just like the company named after the coin GME, it is nothing more than a tech meme, intended to cash in on the hype and search engine optimization surrounding the GameStop news. 71% drop in the last seven daysThe coin is not worth holding long term, but it is a great gaming machine in times of GME news.
Dogwifehat (WIF-USD)
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The premise of dog with hat (WIF-USD) cryptocurrency is simple – it’s a dog with a hat. More specifically, it’s the crypto world’s favorite dog breed, a shiba inu, which wears a knitted hat. This is it from a technological point of view, since currency is simply a Solana (SOL-USD) network derivative available for purchase on a few different exchanges.
Some analysts went to great efforts to justify its existence, describing it as a community project aimed at addressing the financial nihilism of the current generation. This description certainly has some philosophical merit, given the rising cost of living in the US and stagnant wages in a context of record inflation.
However, from an investment perspective, it is difficult to see WIF as anything more than a social media-driven scheme. Investors beware, just because WIF has seen some big popularity-based moves doesn’t make it a stable long-term investment.
Popcat (POPCAT-USD)
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I confess that this one caught my attention because of its website, which I found embarrassingly amusing. Based on the 2020 Internet meme of a cat named Oatmeal, Popcorn (POPCAT-USD) is a meme coin through and through. In its defense, the site openly states that the currency has no intrinsic value and is subject to speculative changes in value.
Since this coin is not trying to mislead anyone about its prospects, I think it is worth mentioning its website design, which involves a global click competition. People from all over the world are competing to see who can click the most on the cat to make its characteristic noise.
While this does not in any way affect the value of the coin, it is a great way to draw 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 arrives at the station. That being said, you can compete for your country here.
As of the date of publication, Viktor Zarev did not hold (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 Publishing Guidelines.
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.