Investor Sentiments and Concerns Surrounding Meme Coins Unveiled in New Study
A new study conducted in May 2023 aimed to uncover insights, perspectives, and outlooks on meme coins from crypto investors worldwide. The study, titled State of Meme Coin and conducted by chainplay.gg, surveyed 1,503 participants to gauge meme coins’ potential in the cryptocurrency market. The findings shed light on investor sentiments, behaviors, and perceptions surrounding these unique digital assets.
The study revealed a divide between investors who have purchased meme coins (63.9%) and those who choose to avoid them (36.1%). Among investors purchasing meme coins, a majority (69%) do so for fun. Surprisingly, 79% of these investors still perceive meme coins as long-term investments with the potential for profit, despite 70% suspecting most meme coins to be fraudulent. Additionally, 73% equate investing in meme coins to mere gambling.
The primary concerns about meme coins, according to nearly 64% of the study’s respondents, are scams and rug pulls. Over half (55.13%) also expressed skepticism about the future of these assets. The study found that 92% of investors dedicate less than 25% of their cryptocurrency portfolio to meme coins. Furthermore, 51% spend less than an hour researching before investing, primarily focusing on meme popularity, social media activity, and community engagement.
Currently, the leading meme coins, based on market capitalization, command a total net value exceeding $17 billion. This week, dogecoin (DOGE) has taken the lead among the top meme coin assets, posting a gain of 9.9% against the U.S. dollar. Shiba inu (SHIB) has also seen growth, although at a lesser rate of 1.6%. However, pepe (PEPE), the third most prominent meme coin, has experienced a downturn, losing 10.9% over the past week. As of July 27, 2023, the meme coin market reported $904.36 million in 24-hour worldwide trading volume.
The study revealed that one in five cryptocurrency investors globally were introduced to digital currencies because of meme coins. Among those purchasing meme coins, 32% have less than a year of experience in the market, suggesting that the hype around meme coins is attracting some newcomers, although it is not the predominant entry point.
Regarding potential growth drivers for meme coins, respondents named celebrity endorsements, partnerships with major brands, and integrated utility as the top factors. However, over half of the respondents expressed skepticism or indifference towards artificial intelligence (AI)-generated meme coins. The study suggests that if the meme coin economy continues to thrive, investors believe it will be attributed to factors such as AI-related adoption and application, practical use cases and real-world applications, popularity among younger generations, and the overall explosive growth of cryptocurrency.
The findings of the meme coin study provide valuable insights into investor sentiments and concerns surrounding these unique digital assets. The study’s results indicate a division among investors, with many recognizing the fun aspect of meme coins while still perceiving them as long-term investments. Concerns about scams and rug pulls remain prevalent, and skepticism about the future of meme coins persists. As the meme coin market continues to evolve, it will be interesting to see how these sentiments and behaviors may change over time.
