Crypto Investors Continue to Embrace Memecoins Despite Risks
According to a recent report from Kraken, crypto investors in the U.S. are increasingly investing in memecoins, even amid the substantial risks associated with these digital assets. The survey revealed that 85% of participants reported having invested in memecoins, with a striking 76% believing that the potential rewards outweigh the inherent risks.
Interestingly, 44% of crypto holders indicated that they believe memecoins could enhance the overall credibility of the cryptocurrency market. Additionally, 42% of respondents expressed optimism that memecoins would outperform other cryptocurrencies in the upcoming year.
The phenomenon of Fear of Missing Out (FOMO) emerged as a primary motivator for investing in these highly volatile assets. Alongside this, many investors cited recommendations from friends and family, as well as the entertaining nature of these tokens, as key reasons for their investments.
While memecoins have recently garnered significant attention, the spotlight has not always been positive. A notable incident involving the apparent LIBRA token rug pull has drawn scrutiny, particularly affecting the Argentinian government. This particular memecoin initially surged to a market cap of approximately $4.5 billion before experiencing a dramatic crash of 90%.
Among memecoin holders, 29% stated that their primary motivation for purchasing these cryptocurrencies was the pursuit of short-term gains, with 23% citing diversification as another key reason for their investments. The survey also revealed interesting demographic insights; women were found to be more inclined to invest in memecoins compared to men, with 86% of female crypto holders indicating they had invested in memecoins, in contrast to 84% of male investors.
Kraken conducted this survey with nearly 800 crypto holders in the U.S. on January 9, 2025, highlighting the evolving landscape of cryptocurrency investment behavior.
