Memecoins are like Powerball for crypto fans: Matrixport exec
May 11. 2023
By Felix NG
For a lucky few, memecoins can provide a “path to wealth,” but for others, they’re simply a “risky gamble,” Matrixport’s Markus Thielen tells Cointelegraph.
Memecoin buyers are playing the crypto-equivalent of Powerball — with many “playing” in the hopes of scoring “life-changing money,” yet only a few will walk away with the jackpot, says Matrixport’s head of research.
Memecoins have seen a huge resurgence over the last week. Crypto tokens such as Pepe (PEPE) and Milady (LADYS) have boasted staggering price surges despite each having little to no discernable utility.
Speaking to Cointelegraph on May 10, Matrixport’s Markus Thielen suggested some buyers of memecoins bear resemblance to those that participate in the lottery.
“There are numerous studies done on how most people in lower socio-economic classes play the lottery [...] as that is their way to get out of their lower economic class,” he said, adding:
“The people that speculate in the lottery are trying to make money lightning fast, and I think that’s very similar with crypto.”
One memecoin that recently gained the attention of enthusiasts is PEPE, a cryptocurrency cashing in on the “Pepe the frog” meme. It launched on April 14 and hit its peak $1.83 billion market cap only weeks later on May 5.
To read the entire article...Click Here!
