The Dangers of Trending News Meme Coins

TL; DR

Full story

In the event you dwell within the US, likelihood is you have been hit Tuesday morning by information articles (good, dangerous, ugly – relying in your algorithm) about Kamala Harris selecting Minnesota Governor Tim Walz as her working mate.

In consequence, two epee-related issues occurred in crypto:

1. The ~$123 million crypto pool of bets positioned on Polymarket on who could be Harris’ working mate was cut up (which was solely a 4% likelihood that Walz would win final Friday).

2. Tim Walz’s meme cash rose in worth (earlier than crashing again down).

   For instance, the one-week-old ‘tem walz‘ Solana-based meme cash went all the best way as much as a market cap of almost $1 millionafter which got here all the best way again to a market cap of ~$250,000 whereas ‘traders’ felt a bubble and pulled their cash out.

So, what is the ethical of this story?

To begin with, crypto is loopy. Even when that is not the case feeling like actual cash, as a result of it’s in symbolic kind, that is actual cash which is performed on meme cash.

Solana-based meme cash have been one of many huge catalysts for the expansion of the crypto trade as a complete over the previous yr, and likelihood is that increasingly more meme cash will likely be launched on trending information.

However earlier than you get caught up within the lure of these potential inexperienced candles, keep in mind that placing cash into ‘tem walz’ will not be a long-term funding technique; So ensure you solely ‘make investments’ what you possibly can afford to lose.

It simply would possibly finish go to zero.