I’m a crypto skilled – right here is the coin I would not go close to and why it may very well be harmful for YOU
The world of cryptocurrency has long been a mystery to many people but now a new trend is taking over: memecoins.
Memecoins are cryptocurrency named after supposedly humorous character, individuals, artwork or trends.
Examples include Dogecoin (DOGE), which was set up as a satirical payment system to make fun of cryptocurrencies, and features a cartoon version of a cute Japanese Shiba dog called Kabosu that internet users found funny and cute.
Others include memecoins based on cartoon frog Pepe (PEPE), Peanut the Squirrel (PNUT), an orphaned squirrel euthanized by New York officials and MOO DENG, which is based on a pygmy hippo from Thailand that went viral because of her cheeky energy.
Yet while these are incredibly risky investments, their creators could make millions. The market cap for memecoins is in the billions. At the time of writing, DOGE’s market cap alone is $61bn. PEPE’s is $16.9bn. PNUT is $1.2bn.
Their value and popularity has shot up since the election of Donald Trump – but now a leading cryptocurrency lawyer has warned against the dangers of buying into the peculiar trend.
James Ramsden KC, a leading voices on crypto and digital asset litigation and a founding partner at law firm Astraea, called memecoins a ‘dangerous illusion’ and a ‘complete con’.
He told MailOnline: ‘I wouldn’t go anywhere near them. It’s an illusion that’s quite dangerous.
Memecoins have seen a surge in popularity since Donald Trump won the US election
Memecoins are cryptocurrency named after supposedly humorous character, individuals, artwork or trends, such as this Shiba dog that inspired the Doge meme
Two-month-old baby hippo Moo Deng (pictured) has also inspired a memecoin
‘They can be hugely popular for a while, I get that.
‘It’s just a very speculative financial punt which is almost completely at the mercy of the people who have put it out there.
‘I think this is a complete con. It has no value or purpose. I’m as worried of those as any digital asset.
‘I don’t think you can call them that at all. It depends on algorithmic social media interaction.
‘It’s a very flimsy way of approaching value to anything.
‘It’s not the memecoins that attract people to a site, it’s what is funny, what is interesting.
‘Memecoins just measure the number of hits [a site or idea] gets.’
Anyone can create a memecoin and unlike more traditional cryptocurrencies like Bitcoin, they cannot be mined. Instead, a finite number are released with the owner keeping a certain amount.
James Ramsden KC (pictured), a leading voices on crypto and digital asset litigation and a founding partner at law firm Astraea, called memecoins a ‘dangerous illusion’ and a ‘complete con’
There was a surge in the number of people buying memecoins since the announcement of the creation of the Department of Governmental Efficiency (DOGE), headed by Elon Musk (pictured)
This is what the Dogecoin looks like, as inspired by the real-life Shiba dog from Japan
Pepe the frog is a cartoon character that has inspired a memecoin which has a market cap in the billions
This squirrel, which was euthanized by New York officials, also spared a memecoin
If they surge in popularity by going viral, then the owner can sell their memecoins, generating income for themself – although this in turn could wipe out the value for investors.
One of the most recent social media stars to suggest starting a memecoin is Hawk Tuah Girl Hailey Welch, who went viral after a making a very risqué gesture during an interview on a night out.
As well as discussing bringing out merchandise, this could be a way for her to make money.
Ramsden added: ‘The people who think this is a good thing will say, ”If you have millions of people following, then it’s inconceivable that someone would take it down”. But look at [Elon] Musk.
‘It’s difficult to see where things go. Either someone stops publishing [content] or they sell [their stake in their own memecoin].’
Ramsden also suggested there could be an issue with who actually owns the idea behind the memecoin.
He said: ‘The intellectual property is highly dubious. A lot of them are derived from other sources.
One of the most recent social media stars to suggest starting a memecoin is Hawk Tuah Girl Hailey Welch (pictured), who went viral after a making a very risqué gesture during an interview on a night out
‘[The creators] will run at the first sign of anyone challenging their right to publish it.’
Meanwhile, digital finance guru Nawab Hussain, the director of Crypto Consultants UK, told MailOnline memecoins were ’emotionally driven’ and that ’80 to 90 per cent are just liquidity grabs – people trying to make a quick buck’.
He added: ‘Memecoins are probably the most speculative in terms of crypto. You need to be careful as an investor.’
Even so, the current trend has seen a huge surge in the number of people buying memecoins, especially since the election of Donald Trump and the announcement of the creation of the Department of Governmental Efficiency (DOGE), headed by Elon Musk.
And while many may see hints of the speculative buys ahead of the NFT market collapse in 2022, the memecoin market is, for the moment, thriving.
