• Recent data suggests that investing in only one memecoin has higher chances of success than diversifying with many assets.
• Savvy investors and NFT influencers have used the recent hype around memecoins to make profits, with most of them focusing on Pepe Coin (PEPE).
• Despite price fluctuations, the now-trending memecoin is still attractive to crypto whales and NFT traders.
The Increase in Popularity for Memecoins
Recently, data revealed that investing in only one memecoin has a higher chance of turning profitable than diversifying with many assets. Savvy investors and Non-Fungible Token (NFT) influencers have used the recent hype around memecoins as an opportunity to make solid profits. Those who made money on such investments mostly focused on Pepe Coin (PEPE). Despite its recent price fluctuations, PEPE is still intriguing for crypto whales and NFT traders. Certain users even sold digital art from the Bored Ape Yacht Collection (BAYC) below the floor price to purchase PEPE.
Investment Outcomes of NFT Influencers
Lookonchain recently revealed how four out of eight NFT influencers did when investing in popular memecoins such as PEPE, GENSLR, KEK, and TURBO. Two of them – “Vince_Van_Dough” and “ohhshiny” – made money after dealing only with the frog-inspired digital asset. The former spent $167,000 worth of Ethereum (ETH) to buy 96B PEPE and later sold the stash for $174K while “ohhshiny” purchased 700B PEPE for 326 ETH ($610K), parting later with 479B PEPE for nearly $1 million while keeping a portion of it. For his part, “Zeneca” made $14K after investing in TURBO – an AI-related memecoin whose price and market capitalization peaked at the beginning of May 2021 but has since then declined significantly.
Potential Risks Associated With Investing In Memecoins
Betting on meme coins could be tricky as it can be difficult to predict their prices since they are still quite volatile due to their low liquidity level. Furthermore, there is no guarantee that those who invested heavily in these tokens will get back their initial investment or even more than that once they decide to sell them off at a later date.
Conclusion
The potential gains associated with meme coins should not be overlooked by investors or taken lightly; however it’s important to remember that any form of investment carries some risk which must be weighed against its expected returns before making any decisions.
References
Lookonchain: https://twitter.com/lookdev/status/1392776372547244032