The Hidden Dangers of Buying Meme Coins You Need to Know | Global News Avenue

The coin has grown from Internet jokes to hundreds of billions of dollars assets. From leisure investors to major financial institutions and current US presidents have attracted everyone. Once the playful imitation, the explosion of tokens related to celebrities, politicians, and virus trends has turned them into “highly fluctuating and speculative assets”, “” “” “” Anwar SheluchinThe doctoral candidate of the University of McMatt’s research on financial governance and digital currency told Investopedia.

Sheluchin suggested that many traders have not caught up with the major transformation of the industry in the past ten years. She said: “The cause coin is still inspired by the Internet culture and trends, and has been supported by the online community (and) speculation cycle.” But “the surrounding speculation seems to be shorter than before.” She pointed out many coins For example, a coin of the so -called “Hawk Tuah Girl”, and according to her 2024 virus reputation, “rose in a few hours instead of a few days and weeks.

Below, we quickly take you to some dangers of these assets.

What is the cause coin?

Coin It is a crystal speculation in social media hype, Internet culture and community participation-there is no Internal value Or use in addition. Therefore, they are more like a casino chip than regulatory investment.

Originally created as a so -called joke or imitation, they attracted attention due to speculative interests. Dogecoin (Doge) Lead. Some, like it Shiba Inu (Shib) And Floki Inu (Floki) won a strong follower, most of them have not yet.

Merchants coins and crimes

The director has been emphasizing the main criminal risks related to alumin coins for a long time. For example, in October 2024, the US authorities accused 18 and major encryption companies accusing various fraudulent behaviors to daily investors. These schemes depend on the central participants of the industry (so are called “businessmen”). Cleaning transaction Establish fake transactions and propose more buyers’ interests to be highly wary of investors.

Experts such as Sheluchin say that market manipulation is not the only problem in the industry. This is also full Pump and downside schemeAmong them, the price of artificially expands before major selling, making the late investors lose money.

Joshua Levy, an active US prosecutor, said that the allegations in 2024 “is” the degree of being alert to online investors and the assignment before the digital frontier. “” Considering cryptocurrencies at cryptocurrencies People who invest in the industry should understand the working principles of these scam so that they can protect themselves. ”

Other major risks

It seems that this is not enough. This is the well -known harm of investing your money into these coins:

• Extreme fluctuation: The cause of the coin has undergone unpredictable price fluctuations, leading to potential returns or huge losses.
• Lack of basic value: Most cause coins lack realistic applications, strong development teams or long -term survivability.
• Uncertain supervision: Future legal suppression or re -classification may affect its liquidity and market existence.
• Risk: You have to related coins to hackers and other criminal operators.
• Liquidity problem: Many coins have a low transaction volume, so they sell their holdings at the expected price.

Bottom line

Traders should be very cautiously exposed to coin, which is more similar to gambling and entertainment, rather than investing in investment portfolios. Sheluchin said: “The speculative nature of coins, plus their vulnerable to fraud (pumping plan). Retail investorEspecially those who have no experience. ”