State of
Meme Coin
Unmasking the Hype: Insights and Outlook on MemeCoins in 2023
&
Are meme coins worth investing in? Although many of these tokens have a fun, trendy edge, and are incredibly hyped to make them potential high-profit assets, some meme coins can be money pits. But which case is more likely?
To answer this question, we conducted a global survey of 1503 crypto investors. The main aim of our research was to gauge these coins' potential in the market. We specifically sought insights, perspectives, and outlooks from investors. In the process, we also discovered valuable indicators of the future potential of such assets. This article is a summary of the meme coin truths we unearthed.
Key Findings
With 63.9% of investors buying meme coins and 36.1% abstaining, there are varying sentiments surrounding these assets. Below is a list of some of the most outstanding meme coin insights we gathered during our survey.
At a glance, our key discoveries on meme coins may paint a shaky image of these assets, especially to potential investors. This section will help put these findings into perspective. Let's explain each finding and contextualize it to avoid any positive or negative biases when dealing with meme coins.
KEY FINDING 1
70% of worldwide crypto investors think that the majority of meme coins are scam
The most glaring insight we uncovered was that only 30% of crypto investors believed meme coins were safe investments. The majority perceived these coins as scams, but not in the literal sense of the word. Their perspective leaned more toward the unpredictable nature of these coins' value. 70% of the surveyed investors believe that meme coins generate a ton of profit at the start but later have this value drop significantly, if not completely. In fact, 53% believe they can profit from meme coins before their value tanks.
KEY FINDING 2
73% of worldwide crypto investors think that invest in meme coins is like gambling
Many crypto capitalists also believe that investing in meme coins is like gambling. However, this is mostly the case because many meme coin investors don't do enough due diligence before purchasing the tokens. Our survey revealed that 51% of meme coin investors only research for less than 60 minutes before investing. Such high-risk investments require more thorough research, but 55% of investors who do little research prior to investing say they rely solely on luck when making financial decisions. This explains why investing in meme coins feels like casual betting.
51%
of meme coin investors only research less than 60 mins before investing
55%
of investors who do little research prior to investing rely solely on luck when making financial decisions.
KEY FINDING 3
69% of investors
invest in meme coin for fun
Profits aside, the majority of crypto investors put their money into meme coins because of the fun feeling surrounding them. Meme coins are hype-based cryptocurrencies. They draw people in because of their trendy nature, especially on social media. Here's a breakdown of the main motivations behind meme coin investments.
Reasons to participating in meme coin
For fun
69%
High profit potential
64%
Curiosity
61%
People who put the money in for fun spend the largest amount on meme coins
KEY FINDING 4
48% of meme coin investors worldwide consider meme coin as a long-term investment
48% of meme coin investors worldwide who buy the coins for fun consider meme coins as long-term investments. As a result, this category of investors spends the most funds on these fun tokens.
Generally, though,
79% of investors view meme coins as long-term investments due to the potential for long-term gains.
These investors acknowledge that the coin's value may fluctuate once the hype surrounding it dies down. However, they believe that over time, the assets will get a more stable price and even have the potential for long-term gains.
KEY FINDING 5
Top 3 factors that investors research the most are meme popularity, social media activity, & community activity
When meme coin investors conduct research before purchasing the assets, they make several considerations. Here are the most prevalent Investor research priorities.
Investor priorities unveiled
KEY FINDING 6
Scams and rugpulls dominate meme coin worries at 63.81%
When it comes to meme coins, most investors are concerned with the risk of becoming rug pull victims. However, there are still other fears, as described below.
Investor priorities unveiled
KEY FINDING 7
Over half of investors worldwide
(55.13%) doubt the future
of meme coins
Investors have a high level of skepticism about the future of meme coins. As many as 55.13% of the surveyed investors felt uncertain about what the future holds for these tokens. This uncertainty mostly comes from several factors, as listed below.
Get to know meme
coin investors
General truths aside, what perception do crypto investors have about meme coins, and how does this drive their investments? This section summarizes the surveyed meme coin investors' key perceptions and investment tendencies.
- 32% invest in meme coin less than a year
- 1 in 5 investors worldwide joining cryptocurrency because of meme coin
Our survey revealed that only one in five investors worldwide joined cryptocurrency because of meme coins. This means meme coins are not the sole driving force behind overall cryptocurrency adoption.
- 92% of investors spend less than 25% of their portfolio on meme coin investments.
Because of meme coins' volatile, unpredictable nature, only 8% of investors put more than 25% of their crypto portfolio on the coins. This conservative approach suggests a measured risk appetite and a preference for diversification.
Meme coins die out just as fast as they pick up speed, resulting in a tendency for quick decision-making to keep up with fast-paced investments. As such, 51% of investors only research for less than 60 minutes before investing, and the top three factors that investors analyze the most are as follows
The top three factors that investors research the most are:
- 41% Meme popularity
- 38% Social media activity
- 24% Community activity
Investors often seek this information from unconventional sources and social platforms to inform their investment strategies.
The Ambiguous Future of Meme Coins
It's difficult to predict the future of meme coins accurately. There are several indicators that the industry can thrive or crumble in the days to come. Let's explore what investors think about both possibilities.
The ambiguous future of meme coins.
The leading cause of the ambiguity surrounding meme coins is their unspecified use cases. According to 32% of investors, meme coins can have some practical use cases, but their impact will be limited. Another 30% of investors believe that meme coins have no practical use cases and will eventually fade away. However, only 28% are most critical, stating that meme coins lack inherent value and are prone to market manipulation and scams.
Key Driver for meme coin growth in 2023
If the meme coin sector thrives in the future, the growth can be attributed to several factors, as listed below.
Skeptical outlook on AI-generated coins
There are also mixed feelings about AI-generated meme coins and their future potential. Here are investor views on the subject
This indifference towards the AI aspect of meme coins indicates that it may not be a significant factor in investment decisions.
Methodology and Limitations
In order to gather the data presented above, we conducted a survey among 1503 crypto investors worldwide. Attention-check questions were included to ensure the participants did not mindlessly answer questions. Any unqualified responses were excluded from our results. However, the survey's reliance on self-reporting, telescoping, and exaggeration can influence responses. Please also note that the results of this survey do not reflect our opinions. All information and interpretations contained in this report do not constitute investment advice.
Fair Use Statement
If you know someone who could benefit from our findings, feel free to share this report with them. The graphics and content are available for noncommercial reuse. All we ask is that you link back to this page so that readers get all the necessary information and our contributors receive proper credit.