Meme Insider
Crypto investors in the U.S. are continuing to pour money into meme coins, even though these digital assets are known for their high risks. This is according to a recent report from the crypto exchange Kraken, which surveyed U.S. crypto holders.
The survey found that a whopping 85% of respondents have invested in meme coins. What's more, 76% believe that the potential profits from these coins are worth the risks involved.
Interestingly, 44% of crypto holders think meme coins will actually boost the credibility of the crypto market, and 42% expect them to perform better than other cryptocurrencies this year.
Why the Meme Coin Craze?
So, what's driving this meme coin frenzy? One of the biggest reasons is FOMO, or the "fear of missing out." People are worried they'll miss the next big thing and the chance for quick gains. Recommendations from friends and family also play a role, and let's face it, the fun, internet-culture nature of these tokens is definitely part of the appeal.
Meme coins have been in the spotlight lately, though not always for positive reasons. The recent case of the LIBRA token is a prime example. This token seemed to be a "rug pull," where the developers disappear with investors' money. LIBRA's market value shot up to around $4.5 billion before crashing by 90%, causing significant losses for many.
Short-Term Gains and Diversification
For those investing in meme coins, quick profits seem to be the main motivator. About 29% of meme coin holders said short-term gains were their primary reason for buying. Diversification also plays a role, with 23% citing it as a reason to invest in these quirky cryptocurrencies.
Women Leading the Charge?
In a surprising twist, women are slightly more likely to invest in meme coins than men. The survey showed that 86% of female crypto holders have invested in meme coins, compared to 84% of their male counterparts.
Kraken's survey included nearly 800 crypto holders in the U.S. and was conducted on January 9, 2025. It highlights the ongoing fascination with meme coins, even amidst the well-known risks and volatility in the crypto market.
