This is how the "Meme Token" arise from that mixture of misconceptions about investment, the use or abuse of social networks and the offer of magic recipes. For this reason, it is very normal to be in a cryptocurrency forum, to meet users asking about the next virtual currency that will rise in price to make their investment move, as if potential network advisors had crystal balls to predict. a future or handle information outside the rest of the market.
That feeling of the social network investor is fueled by
FOMO (Fear of Missing Out, or in Spanish "the fear of being left
out"), since the bombardment of successful stories is so high that even
the least knowledgeable people on the subject of cryptocurrencies, are driven
to invest in any cryptographic asset, even originating from a joke, so as not
to miss the great "opportunity", leaving aside basic evaluations of
risk profile and investment objective, necessary to make decisions on the
convenience or not of an investment.
Also Read: What is Hokk Finance
Information of Meme Token
This impulse motivated only by emotional issues, is further enhanced due to the current reality of a society that, due to the economic difficulty and unemployment generated by the pandemic, pushes people to participate in this type of misleading offers, which promise great benefits and that They proliferate in social networks.
With all these ingredients, it is more and more common to
see crypto-asset projects created with the sole purpose of attracting thousands
of people to buy an asset without value and without a project behind it to
carry out a modern version of "pump and drop", where The creators of
the token use social networks to boost their virtual currency, generating
excessive demand that increases its price exponentially and thus manage to sell
what had no value at all, leaving many people trapped in the "advice"
of the virtual advisor.
schemes and investment
The explosion of fraudulent schemes and investment offers around cryptocurrencies are a reality, which also undermine the confidence of an industry that seeks recognition and acceptance of the global financial system, which needs to distance itself from old practices of scammers who take advantage of the fashion to manipulate thanks to social networks to the unwary and ambitious alike.
Web page evaluation companies have reported more than 400,000 scams created in 2020 and estimate a growth of more than 75% for the current year, confirming that there is a clear correlation between "the increase in scams with the value and popularity of cryptocurrencies".
The Meme Coins and the magical investment proposals with them are just an example that the novelty of the crypto world could be used for scams and is a pending issue in the search for the consolidation of the industry with Hokk Finance Meme Token.
The historical evolution of cryptocurrencies and their development will have to overcome many obstacles, which will be a topic for another time; but the parallel risk of “playing to invest” exemplified by the euphoria of the “Meme Coins” is a matter of immediate attention, not alerting the general public about the risks of investing speculatively, without advice and looking for answers in a social network ; It could, as we have already seen, turn your investment dream into a nightmare.
There is no doubt, playing to invest is not an option, much less when the advice is null or the "advice" in social networks, forums or chats, has the intention that you lose your money.
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