The Dangers of Trending News Meme Coins
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In case you dwell within the US, likelihood is on Tuesday morning you have been struck with information articles (good, dangerous, ugly – relying in your algorithm) about Kamala Harris choosing Minnesota Governor, Tim Walz, as her operating mate.
In consequence, two degen-related issues occurred in crypto:
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The ~$123M crypto pool of bets positioned on Polymarket for who Harris’ operating mate could be was divvied out (which was at simply 4% odds of Walz profitable as of Friday final week).
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Tim Walz meme cash flew up in worth (earlier than crashing proper again down).
For instance, the one week outdated ‘tem walz’ Solana-based meme coin went all the best way as much as having a market cap of almost $1M, after which got here all the best way again right down to a market cap of ~$250k as ‘traders’ sensed a bubble and pulled their cash out.
So, what’s the ethical of this story?
Firstly, crypto is loopy. Even when it doesn’t really feel like actual cash as a result of it’s in token type, that’s actual cash that’s being performed with on meme cash.
Solana-based meme cash have been one of many massive catalysts for the expansion of the crypto business as an entire up to now 12 months or so, and likelihood is, an increasing number of meme cash will proceed to be launched about trending information.
However earlier than you get sucked into the lure of these potential inexperienced candles, do not forget that placing cash into ‘tem walz’ will not be a long run funding technique; so be sure you’re solely ‘investing’ what you may afford to lose.
It simply would possibly find yourself going to zero.
