Memecoin buyers participate in the cryptocurrency version of Powerball, with many “playing” in the goal of winning “life-changing money,” but only a select few will win the jackpot, according to Matrixport’s head of research.
Over the past week, memecoins have experienced a significant resurgence. Cryptocurrency tokens like Pepe (PEPE) and Milady (LADYS), despite having little to no discernible utility, have experienced astonishing price increases.
Related: Mastering Meme Coins: Your Ticket to Crypto Wealth or a Risky Gamble?
In an interview with Cointelegraph on May 10, Markus Thielen of Matrixport suggested that some memecoin buyers are similar to lottery players.
“There are numerous studies done on how most people in lower socio-economic classes play the lottery […] as that is their way to get out of their lower economic class,” he said, adding:
The people that speculate in the lottery are trying to make money lightning fast, and I think that’s very similar with crypto.
The cryptocurrency PEPE, which capitalizes on the “Pepe the frog” meme, is one memecoin that has recently caught the interest of fans.It launched on April 14 and hit its peak $1.83 billion market cap only weeks later on May 5.
CoinGecko estimates that the token’s price fell 57% from its peak in just five days, which reduced its market worth to well below $1 billion. The price of the token, however, fell almost as swiftly as it had risen.
