The crypto market is currently experiencing a lot of volatility due to the growing frenzy of meme coins and the accompanying scams. $LIBRA and $TRUMP tokens are two recent prominent examples of this, where political personalities were found to be indirectly / directly involved. (chava, chhava)
What lessons can be drawn from these events?
Meme coins and political participation:
- Javier Millelli’s $LIBRA endorsement and Trump’s $TRUMP token appear to be an attempt to destabilize the crypto market using political influence.
- Javier Millelli’s $LIBRA endorsement and Trump’s $TRUMP token appear to be an attempt to destabilize the crypto market using political influence.
Rug Bridge and Insider Trading:
- There was also a large amount of speculation in the $TRUMP token, where the market value dropped from $14.5 B within a week.
- Tokens worth $107M in LIBRA were sold from insider wallets, causing huge losses to ordinary investors.
Bitcoin vs. other cryptocurrencies.
- Although Bitcoin is considered digital gold in the traditional sense, it is being compared to other cryptos.
- The bitcoin community has always maintained that “crypto” and “bitcoin” are distinct.
- However, such scams make it difficult for ordinary investors to distinguish between Bitcoin and other speculative tokens.
Here’s a guide for you:
- Do your research before investing. Check the Tokenomics, Roadmap and Development Team of any token.
- Beware of investing in meme coins: Investing in meme coins early can yield big profits, but avoid rag pulls and speculative frenzy.
- Prefer Bitcoin: If you’re a long-term holder, Bitcoin or other established projects may be the right choice.
Are you creating a crypto or meme coin project yourself? Are you thinking about investing?
