Meme coins are frequently perceived as merely a speculative asset class rather than an investment opportunity to build wealth.
Meme coins like , however, have potentially created millionaires when timed properly. They may capitalize on the fervent online community support even though meme coins have no intrinsic worth.
SHIB Created Millionaires From Just $12
According to recent research, the best approach to try and strike it rich on meme coins is to purchase them before they become popular. This is because the largest rallies normally occur after social media hysteria kicks off.
This strategy differs from a mere ‘pump and dump’ but is equally risky. CoinGecko highlighted in a recent report that meme coins’ value growth depends on two primary factors: their ability to generate hype and community support.
Take, for instance, Shiba Inu (SHIB). Compared to its 2020 starting price, SHIB saw the highest price increase of the assets included in the study. CoinGecko noted that it reached a massive peak increase of 8,424,202%.
An investor would have needed to invest an average of $66,298.25 to become a meme coin millionaire, according to CoinGecko’s research of 10 meme coin price returns. Shiba Inu required an initial investment of just $12, while ArbDoge AI (AIDOGE) required an investment of $190,585.57 to reach that holding.
Early Adopters of Meme Coins Could Have Benefitted
Many eminent Bitcoin investors who were early adopters or exhibited incredible foresight made a fortune. For instance, venture entrepreneur Tim Draper is one of the well-known Bitcoin investors and cryptocurrency millionaires. Another successful analyst who made the list of top crypto millionaires is Arthur Hayes, worth over $500 million.
As per the report, an investor who purchased Dogecoin on Dec. 15, 2013, would have needed to put in $819.51, more than required to become a Shiba Inu millionaire. However, those who bought these coins only in 2021 would have needed to invest at least $4,507.98 in Floki Inu (FLOKI) to become a millionaire, CoinGecko noted.
The report specifies that an individual could have become a millionaire in 361 days on average. Dogecoin required the longest growth period of over seven and a half years to become a millionaire.
Concerns With Meme Coins
While it’s important to remember that each investor’s risk appetite and objectives are unique, correctly identifying products or timing the volatile world of crypto could be the key. Rajagopal Menon, Vice President of the WazirX crypto exchange, told BeInCrypto that social media buzz and community promotions can sometimes create FOMO (fear of missing out) among investors who don’t want to miss the bus on a trend.
With regard to investing in meme coins, Menon states that a large supply volume makes quick returns enticing but difficult.
He added,
“While many new tokens are emerging in the market, driving on-chain activities on different blockchains, and increasing transactions on blockchain networks such as BTC, ETH, it’s important for investors to do their due diligence and not be completely influenced by what is being promoted online.”
DOGE, SHIB, and PEPE are the only three such coins to rank among the top 100 cryptocurrencies based on market capitalizations of the 179 meme coins ranked on CoinGecko.
