Some of you might have come across mind blowing stories of how an investor turned few dollars into millions of dollars, simply by buying memecoins such as DOGECOIN, SHIBA or PEPE when they've not really gain popularity and later sold at a big marketcap. While this may seem very tempting to some persons, the bitter truth is that these investors fail to tell their audience how many times their hands were burnt and the losses they suffer.
When successful people come out to address the audience on how they became rich, if they don’t always add the struggle path of it or where the whole stuff got messy for them, there’s some untruthfulness in their claim. Nothing good comes that easy and if it happens, it’s based on luck and it doesn’t come over and over again after getting it the first time.
Few days ago, a memecoin investor invested a whooping $1,000,000 dollars in MBAPPE coin and within an hour, his investment was brought down to $9,200 dollars when the scammer removed liquidity causing the price to plummet. Now, this is just one of many sad stories of investing in memecoins.
Any coin that even has to do with any influencers name or portray anything looking to any popular influencer, that should immediately be a sign of red flag to you and should be avoided by all means. It’s either the influencer wants to profit from its fans since they can convince them to invest in the project or maybe someone is portraying them and trying to profit from their fans.
Imagine if the investor had invested in Bitcoin, no matter how deep the chart gets it will surely bounce back and there's certainty that he'll get his money back as well as some profit, but in this case his investment is gone and gone forever. My advice to newbies is that you shouldn't be carried away by memecoins because of the price swings. They are dangerous, not worth it and the risks outweigh the gains.
Some of this risks are done by people who are not saturated enough about the market, don’t know how the market operates and just want to get rich overnight. It’s very sad to see people losing money in crypto to scammers, it portrays a bad name to crypto. It doesn’t even matter if it was crypto investment or not, when investing, you should do your diligence research about the project before putting your money into it.
