Samecoins recently made the headlines, mainly motivated by the launch of the President’s $ Trump coin. Recently, the American sec said that, for the most part, the same are not titles because they do not respond to the Howey test. However, this does not mean that customers will not ask questions about these assets.
So, in today’s crypto for advisers, Janine Graining by Easy Crypto, based in New Zealand, provides ventilation of what is even, how they work and the risks associated with them.
Then, Kieran Mitha, a new generation investor, answers questions about learning the same in Ask A Expert.
– Sarah Morton
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Same: boom, bust and Paris of a billion dollars
On January 17, a new part of memes called $ Trump was launched by the elected president. Its market value culminated at $ 14.5 billion in two days, but quickly crushed by two thirds. The entities behind the medal would have made nearly $ 100 million in negotiation costs in less than two weeks (and even more liquidations). However, hundreds of thousands of everyday investors have lost significant sums. Meanwhile, at the end of 2024, when Trump announced a ministry of government efficiency (DOGE), the Dogecoin cryptocurrency jumped 150%, far exceeding Bitcoin gains.
Moments like these have put parts even firmly on the investment radar. However, fueled by media threshing rather than utility, they create both opportunities and risks for investors, and financial advisers must understand their single market dynamics, because high -content customers are going to inquire about them despite their speculative nature.
Figure 1: Coindesk View of $ Trump which dropped shortly after the launch.
What are the guys?
Samecoins are cryptocurrencies that come from Internet culture, social media trends or jokes. Unlike Bitcoin or Ether, which, over time, has built a case of inclusion in a diversified portfolio, even prosperous on media threshing, community feeling and celebrities approval. Although they often start as a parody or a joke, viral marketing and speculative trading can give them serious traction – although this is generally short -lived.
Why are the coins important
The same has acquired traditional visibility because of their cultural relevance and their excessive short -term gains potential. High -level characters like Elon Musk have fueled rallies with a single tweet, arousing speculative interest. But while merchants are attracted to the possibility of night wealth, memes are high -risk assets with unpredictable price oscillations.
The price of the pieces even can soar or collapse in a few hours, leading to massive gains or total losses, such as “Fartcoin”, a joke token which reached a stock market combination of 2.2 billion dollars purely by a viral attraction before hunting at the exit of anticipated investors. Platforms like Pump. Fun this speculation by allowing users to create and exchange memes parts with a minimum of technical knowledge. This has led to a flood of short -lived tokens that strengthen high risk of the market.
But are they legal?
Ironically, the regulatory position of the Securities and Exchange Commission helped the same to prosper. While the crypto focused on public services faces a meticulous examination and legal obstacles, the same operates in a gray area because they do no promise of financial yields. This fueled their proliferation.
The dark side: the carpet pulls and scams
Unfortunately, the same is a reproductive ground for the “pump-and-digi” diets, where influencers beat a token to increase its price, then remove, leaving daily investors with valuable assets.
A recent example is the personality of the viral internet Hailey Welch, who launched $ Hawk after online infamy. In one day, the market capitalization of the play approached half a billion dollars before collapsing and triggering accusations of fraud. Similarly, the president of Argentina, Javier Milei, inadvertently triggered a scandal when he promoted Balance, who also jumped and crashed, leaving him open to the allegations of market manipulation. These incidents highlight why the same parts are often considered as cryptocurrencies with little intrinsic value or long-term viability.
Figure 2: Coindesk View of Hawk Tau ($ Hawk), which dropped shortly after the launch.
Memecoin investment considerations
Investors must remain cautious because many mecoins lack transparency. For those who are always interested, key risk factors include:
- Liquidity: Low trading volumes lead to extreme price oscillations, making it difficult to enter or output positions.
- Community feeling: Social media pilot prices movements. Monitoring X (Twitter) and Telegram can provide market information.
- Tokenomics: Some guys lead to a rarity, while others have an unlimited diet, diluting the value over time.
- Risk of pump and notch: Aggressively marketed tokens with unrealistic promises often signal a short -term threshing cycle rather than a sustainable investment.
- Early entry against longevity: Going early can be lucrative, but the risk of a sudden crash is high. Some investors prefer the same established with strong communities in pursuit of the latest trend.
Although mecoins can offer fast gains, their volatility and their sensitivity to manipulation make them high -risk assets. Advisers should educate customers about their speculative nature and focus on proactive risk management. In the end, the same is more like the game than traditional investment.
–Janine Granger, CEO, Easy Crypto
Ask an expert
Q: I see that people on social networks are rich in the same … Can I do the same?
A: Although some people have made significant benefits of the same, it is important to remember that social media often highlights successes while ignoring the many who lose money. The same is very speculative and their prices can be motivated by the overhaul, the mentions of celebrities like Elon Musk and the feeling of the market rather than by solid fundamentals.
If you plan to invest, approach it with caution. The timing is everything – many early buyers see significant gains, while those who buy late are often faced with losses when the beateering fades or the carpet is fired. If you are investing, treat it as a high risk bet rather than a guaranteed route to wealth. Never invest more than you can afford to lose and always do your own research before making decisions.
Q. What role does the community play in the success of a same?
A: The community is the backbone of any successful same and supports the global feeling of the project. Unlike traditional investments, where value is often linked to income or public services, the same prosper on the presence of social media, viral trends and basic enthusiasm. A strong and committed community can stimulate adoption and keep a relevant project, but without sustained interest, even popular same can fade quickly. Before investing, check how much the community is activated on platforms like X, Discord and Reddit.
Q: How can I know more about the same before investing?
A: The most effective method for acquiring knowledge concerning the same is to seek in -depth research and active participation in the community. Start following the renowned media of cryptocurrency, examining the whites and engaging with forums such as Twitter, Reddit and Discord, where communities actively discuss real-time projects. Consider factors such as the project website, the roadmap, the engagement of the developers and the Tokenomics.
It is also crucial to understand the risks involved – mecoins are frequently characterized by high speculation; Consequently, familiarize yourself with market trends, trading strategies and potential scams can help you make well informed decisions. Do not only depend on influencers of media or social media; Reasonable diligence is essential.
-Kieran Mittha, Crypto enthusiasm and major communications
Continue to read
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