Memecoins are often viewed as a purely speculative asset class rather than an investment opportunity to get rich.
However, a memecoin like SHIB has the potential to create millionaires if the time comes. Even if memecoins have no intrinsic value, they can take advantage of the enthusiastic support of the online community.
SHIB Makes Millionaires From Just $12
According to recent research, the best way to get rich with memecoins is to buy them before they become popular. That’s because the biggest rallies usually happen after the social media hysteria begins.
This strategy is different from a simple “pump and dump” strategy, but it is equally risky. Coin Tiger As highlighted in a recent report, the growth in value of memecoins depends on two key factors: the ability of the community to generate excitement and support.
Initial Memecoin investment of millions of dollars. source: Coin Tiger
For example, the Shiba Inu (SHIB), which has seen the highest price growth of any asset included in the study, compared to its 2020 starting price. CoinGecko highlights that it has achieved a peak growth of 8,424,202%.
According to a study by CoinGecko of the price returns of 10 memecoins, an investor would need to invest an average of $66,298.25 to become a memecoin millionaire. Shiba Inu only requires an initial investment of around $12, while ArbDoge AI (AIDOGE) requires an investment of $190,585.57.
Early adopters of memcoin can benefit
Many famous bitcoin investors who were early adopters of bitcoin or showed incredible foresight have made a lot of money.For example, venture capitalist Tim Draper is one of the Bitcoin investors and crypto millionaires famous. Another successful analyst makes the list millionaire The leading cryptocurrency is Arthur Hayes, who has over $500 million in assets.
According to the report, investors who bought Dogecoin on December 15, 2013 would have to pay $819.51, more than the amount needed to become a Shiba Inu millionaire. However, those who only buy these tokens in 2021 will need to invest at least $4,507.98 in Floki Inu (FLOKI) to become a millionaire.
On average, a person can become a millionaire in 361 days, the report states. Dogecoin has been a millionaire for the longest time, over seven and a half years.
Concerns about memecoins
While it’s important to remember that every investor’s risk appetite and goals are unique, identifying the right product or timing can be challenging in the volatile crypto world, which is the key to success. Rajagopal Menon, vice president of cryptocurrency exchange WazirX, said social media buzz and community promotions can sometimes create FOMO (fear of missing out) among investors who don’t want to miss out on trends.
Regarding investing in memecoins, Menon said that the large supply makes instant returns attractive but also difficult.
“While many new tokens are flooding the market, boosting online activity on various blockchains and increasing transactions on blockchain networks such as BTC, ETH, etc., investors must be careful not to be completely fooled by what is being advertised on the Internet. affected by the content.”
DOGE, SHIB, and PEPE are the only three such coins to feature in the top 100 cryptocurrencies based on the market capitalization of 179 memecoins ranked on CoinGecko.
- From PEPE to BabyDoge: Here’s how meme keywords predicted the top of the market.
- Pepe (PEPE) Leads Meme Coin Season – Will DOGE and SHIB Catch Up?
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According to Beincrypto
