What You Need to Know:
- A Kraken survey of U.S. crypto holders reveals that 85% invested in memecoins.
- FOMO (Fear of Missing Out) is cited as a major motivation for investing in these volatile currencies.
- 42% of respondents believe memecoins will outperform other cryptos in 2025.
Crypto investors are increasingly investing in memecoins despite the inherent risks. According to a report from Kraken based on a recent survey, 85% of respondents indicated they hold memecoins, while 76% assert that the potential rewards outweigh the associated dangers.
Interestingly, 44% of crypto holders feel that memecoins will enhance the credibility of the crypto market. Additionally, 42% expect them to surpass other cryptocurrencies in performance this year.
Recommendations from peers and the enjoyable nature of these tokens also contribute to investment decisions.
In recent news, memecoins have made headlines, albeit for negative reasons. The LIBRA token incident has raised concerns among investors. After experiencing a surge to a market cap of around $4.5 billion, it subsequently collapsed by 90%.
Among those who invest in memecoins, 29% cite short-term gains as their primary motivation, while 23% mention diversification as a key factor.
The survey conducted by Kraken on January 9, 2025, revealed that women are more likely to invest in memecoins than men—86% of female investors compared to 84% of male investors.
For further reading: LIBRA Apparent Rug Pull Is Latest ‘Sordid Episode’ Emerging From Solana’s Memecoin Complex.
