Cryptocurrencies are in their moment of splendor in Argentina. More and more users are encouraged to invest part of their savings and, beyond their fluctuation with Meme coins, both Bitcoin and Ethereum grow every day in terms of adoption. The trend seems unstoppable.
So far this year, the digital currency with the largest market capitalization has set eight new all-time records : the first was on January 3, when it reached $34,608; and the last one happened on October 21 when it passed the $66,000 mark .
This upward momentum also inflated the expectations of local crypto savers , who are looking for a shelter against rising inflation and as an option to the successive obstacles to the purchase of foreign currency. According to an analysis by Atlantic venture capital, Argentina stood out last year as the country in the region with the highest volume of transactions in crypto assets .
For now, a large number of people not only bet on volatile currencies (such as Bitcoin and Ethereum) and stablecoins (with fixed prices, such as DAI and USDT, which are worth one dollar), but also on the famous meme coins . Although the latter are a worldwide trend, that does not mean that they are recommended for all types of investors.
What are they?
Santiago Di Paolo, Head of Community Growth & Research at Lemon , assures iProUP : " Meme coins are born as a joke and many do not have a solid technological project behind them. They arise driven by campaigns on social networks and are usually a risky investment for those who they are just entering the crypto world.”
AgustÃn Abraham, Marketing Manager (CMO) of Let'sBit , expresses to iProUP that they are born to criticize projects, as a sort of parody , but "they are more 'smoke' than anything else. They are there to remind us that anything can rise from value, with nothing to back it up, and that we have to be careful where we put our money.
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Alberto Vega, CEO of Bithan , tells iProUP that as in everything there are pioneers, and in this segment it was Dogecoin . According to the executive, "this currency became popular as a fun and different investment alternative to Bitcoin . Today there is a long list, mostly created after the Reddit phenomenon last year."
Di Paolo adds that this type of asset is born simply by market speculation and remarks that part of its genesis is explained by the fact that "there is still a lack of financial and crypto education: many people do not investigate the fundamentals or projects behind each currency and only point to have a large profit in a short period ."
" This is how they resort to meme coins . It is important to continue working on this aspect so that everyone can make the best decisions with the best information," he adds.
As a complement, Emiliano Limia, Press Officer of BuenBit , points out to iProUP that these meme coins are used to make a type of investment called pump & dump , that is, to make an asset rise and fall suddenly and with a high price variation , so the risk assumed is very high .
Information of Meme Coins
"There are many forums and advertisements that claim that they are very good bets and that high returns are achieved. The problem is that you can also have considerable losses," he remarks.
The specialist comments that these promotional campaigns attract many retailers. But those who are ultimately more favored are the first investors or the creators of the cryptocurrency , a kind of crypto Ponzi scheme.
"What usually happens with this type of currency is that you have the vast majority of the tokens concentrated in very few wallets . When they see that thousands of retailers are entering and the price increases, they take the opportunity to sell their share and create chaos in which the price falls abruptly ", he points out.
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