Meme coins have seen spectacular growth this year reaching almost $60 billion amidst the broader market rally. But not everyone is a fan. Many experts and market players have weighed in on how meme coins have overshadowed more legitimate projects in the industry.
Even as the industry remains unsure of the latest hype and the flurry of new meme coins that attract attention and drive community-driven engagement, Galaxy Digital CEO Michael Novogratz believes that these tokens have the “most powerful narratives out there.”
Shedding a light on how investors are making fortunes from meme coins, Novogratz said that there are two ways. In a video from Business Untitled, the exec said that the first way is to choose the right meme coin to invest in and the second way is to create one.
“Memecoins – whether you’re a fan or not – have become a cornerstone of the crypto economy… In today’s market, they’re one of the most powerful narratives out there.”
Novogratz’s comments follow a report by Galaxy Digital, which countered the notion that meme coins are just a passing trend and a fad and instead argued that the primary purpose of these tokens is wealth creation.
The meme coin market has grown significantly this year with March seeing $13 billion in spot trading volumes on exchanges. These tokens have even outperformed major blue-chip cryptocurrencies such as Ethereum and Solana.
However, a recent report by CoinShares highlighted the risks associated with investing in meme coins. The firm noted that market manipulation and liquidity issues due to asset concentration among a few holders pose a major threat to the meme coin holders.
Large trades by these whales can cause intense price volatility and liquidity issues, especially if they control liquidity on decentralized exchange platforms.
Furthermore, a high Gini coefficient of 0.8 indicates significant centralization of token holdings.
The post How to Make Money With Meme Coins? Novogratz Chips In appeared first on CryptoPotato.
BitSafe has released new infrastructure for builders launching decentralized financial applications on the Canton Network.…
Clearing a funded challenge, exiting a position in profit, and then losing the account anyway…
XRP traded largely flat on Monday following a volatile week marked by a broader cryptocurrency…
Strategy is back in the spotlight after revealing its Bitcoin treasury could support shareholder dividends…
Recent business collapses of exchanges have brought speculation about whether such crashes could trigger the…
Whale clients are showing renewed appetite for Ether, a development that could benefit crypto customers…