The Dangers of Trending News Meme Coins

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Should you stay within the US, likelihood is on Tuesday morning you had been struck with information articles (good, unhealthy, ugly – relying in your algorithm) about Kamala Harris selecting Minnesota Governor, Tim Walz, as her working mate.

In consequence, two degen-related issues occurred in crypto:

1. The ~$123M crypto pool of bets positioned on Polymarket for who Harris’ working mate can be was divvied out (which was at simply 4% odds of Walz successful as of Friday final week).

2. Tim Walz meme coins flew up in worth (earlier than crashing proper again down).

   For instance, the one week outdated ‘tem walz’ Solana-based meme coin went all the way in which as much as having a market cap of almost $1M, after which got here all the way in which again right down to a market cap of ~$250k as ‘traders’ sensed a bubble and pulled their cash out.

So, what’s the ethical of this story?

Firstly, crypto is loopy. Even when it doesn’t really feel like actual cash as a result of it’s in token kind, that’s actual cash that’s being performed with on meme cash.

Solana-based meme cash have been one of many massive catalysts for the expansion of the crypto trade as a complete prior to now 12 months or so, and likelihood is, increasingly more meme cash will proceed to be launched about trending information.

However earlier than you get sucked into the lure of these potential inexperienced candles, keep in mind that placing cash into ‘tem walz’ just isn’t a long run funding technique; so be sure you’re solely ‘investing’ what you’ll be able to afford to lose.

It simply would possibly find yourself going to zero.