Meme Coins Face Dual Threat: Market Manipulation and Liquidity Issues

  • 📰 Crypto_Potato
  • ⏱ Reading Time:
  • 56 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 26%
  • Publisher: 51%

Indonesia Berita Berita

Indonesia Berita Terbaru,Indonesia Berita utama

Crypto Blog

Since Dogecoin’s debut in 2013, the meme coin market has seen significant growth, reaching a total market cap of $60 billion by June 2024.

Larger holders or whales can significantly impact the token’s price by making large trades, causing volatility. Furthermore, if a small number of addresses hold most of the tokens, liquidity issues can arise. This is particularly true if the same addresses also control the liquidity provision on decentralized exchanges.

For the uninitiated, this metric assesses the distribution of tokens among different addresses. Such centralization poses risks like potential market manipulation, liquidity challenges, and increased investor caution, all of which need careful consideration when evaluating these “joke” tokens. This shift reflects a recent investor preference toward newer meme coins. There are several factors at play such as growing communities, blockchain ecosystems, as well as the potential for higher returns.Correspondingly, the high futures open interest reflects the massive market footprint of these coins and suggests increased speculative trading. For instance, Dogecoin’s open interest hit a record of $1.8 billion recently, while that of PEPE surged nearly 50% to $850 million in May.

 

Terima kasih atas komentar Anda. Komentar Anda akan dipublikasikan setelah ditinjau.
Berita ini telah kami rangkum agar Anda dapat membacanya dengan cepat. Jika Anda tertarik dengan beritanya, Anda dapat membaca teks lengkapnya di sini. Baca lebih lajut:

 /  🏆 568. in İD

Indonesia Berita Terbaru, Indonesia Berita utama

Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.

Solana meme coins GME, AMC suffer brief decline after GameStop releases earnings ahead of scheduleSolana meme coins GME and AMC crashed by 27% and 36%, respectively, over several hours on Friday after GameStop Corp released lackluster earnings results and announced plans to sell up to 75 million shares.
Sumber: FXStreetNews - 🏆 14. / 72 Baca lebih lajut »