Meme coins have plenty of gripping rags-to-riches tales to tell. The ongoing meme coin craze is mostly fuelled by these stories of multifold returns that can inspire even timid investors to take the plunge into crypto.

On the flip side, they have been startling investors with catastrophic overnight losses. It is less heard of, however. The skewed narration of the meme coin pump worsens the situation. Investors need to have a good understanding of the potential risks and downsides of meme coins to make judicious market decisions.

Crypto assets have long been highly volatile. But the market has been moving ahead more or less in a predictable direction this year. The exception is meme coins, which can take wild swings in a matter of hours. Regardless of where the coin is headed, you’re in for a shock.

That’s how explosive the market is.

While seasoned and conservative investors like to keep volatile assets at a distance, there is a new generation of investors who can’t get enough of them. The meme coin craze that wouldn’t die down reveals their fast-growing influence in the market. Their decisions are based on social media trends and sentiments rather than fundamental or technical analysis.

Pepe price overview, 23 May 2023, CoinMarketCap

Some of the biggest meme coin pumps were kindled by Elon Musk’s tweets. In fact, you can expect a bull run in the market every time Elon Musk mentions Dogecoin or any other meme coin for that matter. The recent LADYS and NOMEME pumps are good examples.

The success of meme coins has led to a surge in speculative trading, which is not healthy for the market or its reputation in the long run. Turning trading into gambling will backfire sooner or later. In fact, a majority of investors who dive into the market unguarded have been making more losses than profits from their reckless investments.

Regulations around cryptocurrencies and NFTs are still in the developing phase. Governments are still apprehensive about them. The high volatility of meme coins doesn’t help the situation. In fact, it feeds the negative narrative.

To give you a better perspective, Pepe has lost 63.29% since hitting an all-time high on May 05, 2023. Milady Meme Coin, on the other hand, has lost 72.36% since May 11, 2023. Ben has lost 36.15%. You get the drift.

Established meme coins like Dogecoin and Shiba Inu are in no better shape. Although they have managed to maintain their status as the world’s largest meme coins, they have also struck loyal investors with painful crashes.

While meme coins are excellent tools for branding and building awareness around a project or product, they are risky investments. The reason is quite obvious. Most meme coins come with no utility. In fact, meme coins like Pepe and LADYS are marketed for their lack of utility. Shitcoins, as they are called, are unlikely to get the legal nod.

Moreover, shitcoins won’t stand the test of time without anything solid supporting their value.

That depends on your risk-reward appetite and the utility of the token in question.

If you’re looking to take advantage of the crypto market volatility, it doesn’t get better than shitcoins. They may be useless. But they can get you 1000-5000% returns as the recent shitcoin pump proved. Don’t forget, they can also bring you equally shocking losses.

Meme coins that come with market-relevant utility have lower risk when compared to shitcoins. While they tap into the meme coin hype to go on steep bull runs, they also manage to sustain demand and in turn value if the underlying project is robust.

Two good examples are AiDoge and Copium.

AiDoge is a meme coin that is widely predicted to kindle a Pepe-like explosion soon, judging by its fast-moving presale. You may have come across this token multiple times on social media platforms or crypto news sites. The meme coin went viral within a few days of its project announcement – for the right reasons.

To begin with, AiDoge has its foot in three of the hottest trends of this millennium. That is AI, memes, and meme coins. The AI-powered Web 3.0 platform makes memes for you within minutes based on your text prompts. The native token $AI powers the platform’s credit, payment, and reward systems. As you can see, $AI wouldn’t just be another meme coin with no utility or purpose.  It is underpinned by its integral role in the AiDoge ecosystem.

It’s official #AiDogeArmy!