Our Crypto Upvotes experts remind us of meme tokens and explain why they can show growth in medium term.
During Crypto Winter, there are many negative forecasts in market at the moment, high “fear” index of investors and tense situation on cryptomarket, we suggest to focus on tokens with high social resource and low fundamental component in mid-term planning. Assets that fit this category perfectly are “meme” tokens.
What cryptocurrency to buy now during Crypto Winter, our experts offer an asset allocation scheme if you have a few extra dollars that you can risk:
- Dogecoin (DOGE) — 30%;
- Shiba Inu (SHIB) — 25%;
- Floki Inu (FLOKI) — 15%;
- Dogelon Mars (ELON) — 15%;
- Baby Doge Coin (BABYDOGE) — 10%;
- Saitama V2 (SAITAMA) — 5%.
Success of most “meme” projects is that they parasitize on Elon Musk brand. Tweets of this billionaire have repeatedly provoked the growth of traders’ interest in certain cryptocurrencies. And most often these were “meme” tokens. For example, Musk has repeatedly explicitly stated his support for Dogecoin. And his Shiba Inu puppy is named Floki, which developers of these projects successfully speculate on.
Among the negative aspects of such an investment portfolio are only its unpredictability. Because growth of token “memes” occurs suddenly and without reason. Such crypto assets are hardly suitable for long-term investments. But they can be interesting in periods of crypto winter.
We should also not forget about the DOGE-funded launch of a satellite to the moon, the exact date of which can be announced at any time, which is likely to cause a strong price increase.
Another project in our portfolio is Saitama. It is not directly related to Musk brand, but the number of mentions of this token in news has increased lately, which could have a positive effect.
Warnings about risks when investing in meme projects.
It is almost impossible to make accurate predictions about price of “meme” tokens. Their cost depends directly on the hype created by a certain group of investors. Therefore, it is difficult to predict their growth or decline with a high degree of probability. This forecast is based mainly on personal experiences of our experts and empirical data from past investment periods.
“Meme” tokens grow rapidly because retail investors buy them en masse, which raises their price through trivial technical market mechanisms. But as soon as these investors sell their tokens and move on to other assets, the price drops noticeably. In fact, “memes” are often accompanied by “Pump and Dump” schemes and less often the increase in activity yields long-term results. This should be taken into account when organizing a portfolio. You need to constantly monitor the actuality of its price, so as not to miss a good moment to exit.
Two exchange traded ETF funds raised a total of $73.6 million on the eve of their...
In what cases is borrowed liquidity useful in DeFi. And also what dangers it brings....