The expert named the main risks of buying memcoins

The main risk of buying memcoins is cryptocurrencies based on Internet memes consist in their high degree of volatility and speculativeness, Evgeny Shatov, a partner at Capital Lab, told Izvestia on March 6.

"The price of memcoins, such as Dogecoin, Shiba Inu, often changes due to hype on social networks, memes or mentions of celebrities, for example, tweets by Elon Musk. This creates "soap bubbles" that can burst at any moment," the expert explained.

In addition, he pointed out the lack of fundamental value. According to him, memcoins do not have a serious technological base, real-world applications, or limited emissions like Bitcoin. Their value is based only on collective interest, which makes them extremely unreliable for long-term investments.

There is also a risk of manipulation.

"Large holders ("whales") can artificially inflate the price, and then massively sell the asset, crashing the market. Small investors are often left at a loss," said Shatov.

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In addition, fraud and scam projects are not excluded. The Capital Lab partner clarified that many memcoins are created as "pumping dump" schemes. Developers can abandon the project after raising capital, leaving investors with useless tokens.

However, there are regulatory risks. Authorities in many countries are critical of speculative crypto assets. Possible bans or restrictions can instantly reset the value of memcoins, the expert noted.

"Memcoins can bring quick profits, but their risks are comparable to gambling. For serious investments, assets with a transparent economy and a utilitarian value should be chosen," Shatov stressed.

Earlier, on March 2, the founder of GBIG HOLDINGS, Rufat Abyasov, told Izvestia that this month the bitcoin exchange rate may return to growth. He did not rule out that this cryptocurrency could exceed $100 thousand.