A new study conducted in May 2023 sought to uncover insights, perspectives, and outlooks on meme coins from crypto investors around the world. The online survey of 1,503 participants aimed to gauge meme coins’ potential in the cryptocurrency market. It revealed several findings about investor sentiments, behaviors, and perceptions surrounding these unique digital assets.
Meme Coins: Gamble or Investment?
The study by chainplay.gg titled “State of Meme Coin” revealed a divide between investors who have purchased meme coins (63.9%) and those avoiding them (36.1%). Of the investors purchasing meme coins, a majority (69%) do it for fun. Yet, 79% still perceive them as long-term investments with the potential for profit, even though 70% suspect most meme coins are fraudulent. Additionally, 73% equate investing in meme coins to mere gambling.
The primary concerns about meme coins, according to nearly 64% of the study’s respondents, are scams and rug pulls. Over half (55.13%) also expressed skepticism about the future of these assets. The study found that 92% dedicate less than 25% of their cryptocurrency portfolio to meme coins. Moreover, 51% spend less than an hour researching before investing, primarily focusing on meme popularity, social media activity and community engagement.
At present, the leading meme coins, gauged by market capitalization, command a combined net value exceeding $17 billion. Taking the lead this week among the quintet of top meme coin assets is dogecoin (DOGE), posting a gain of 9.9% against the U.S. dollar. Shiba inu (SHIB) has also seen growth, albeit at a lesser rate of 1.6%. Meanwhile, the third most prominent meme coin, pepe (PEPE), has experienced a downturn, losing 10.9% over the past week. As of July 27, 2023, the meme coin market reported $904.36 million in 24-hour worldwide trading volume.
In the study, one in five cryptocurrency investors surveyed globally said they were introduced to digital currencies because of meme coins. Of those purchasing them, 32% have less than a year of experience in the market. This suggests that the hype around meme coins is drawing some newcomers, though it’s not the predominant entry point.
When asked about potential growth drivers if meme coins prosper, the top responses were celebrity endorsements, partnerships with major brands, and integrated utility. However, over half of the respondents were skeptical or indifferent about artificial intelligence (AI)-generated meme coins. The study says that if the meme coin economy “thrives” going forward, investors suggest it will be attributed to four factors.
About 12% of respondents suggest that AI-related adoption and application could be a factor, while 22% believe it will be due to more practical use cases or real-world applications. Meanwhile, 23% attribute it to popularity among younger generations, and 26% stated they expect growth from the overall explosive growth of cryptocurrency.
What do you think about the meme coin study and its findings? Share your thoughts and opinions about this subject in the comments section below.
