- High Risk:
- Pump-and-Dumps: Some meme coins are created to scam investors by inflating prices and then crashing them.
- No Fundamentals: Many meme coins lack real value or utility, making them speculative.
- Volatility: Prices can drop 50% or more in minutes.
- High Reward:
- Explosive Gains: Early investors in Dogecoin and Shiba Inu saw life-changing profits.
- FOMO (Fear of Missing Out): When a meme coin goes viral, prices can skyrocket overnight.