For Marija Matic, «the market is still captivated by these tokens.» The wind in favor of memecoins will not last forever. Nihilism is a philosophical current that supports the denial of absolute principles and values, such as truth, morality or the very existence of inherent meaning in life. Nihilists believe that life is purposeless per se, that there are no objective truths, and that all belief structures or value systems are human constructs with no transcendental foundation. Transferring the concept to the world of cryptocurrencies and investments, we could say that memecoins are the epitome of financial nihilism because they represent an attitude that challenges and rejects traditional norms of valuation and seriousness in the markets. Memecoins, unlike other cryptocurrencies that seek to solve financial or technological problems, have no clear underlying purpose or obvious utility. It is accepted, as explained in the Cryptopedia (educational section of BitcoinDynamic), that these cryptocurrencies can have value simply because they are popular or fun. Just as philosophical nihilism rejects traditional structures of meaning, memecoins undermine traditional expectations of how a financial asset should function. Marija Matić, an analyst at the company Weiss Rating, explains that – in her opinion – financial nihilism can trace its origins to the financial crisis of 2008. «Emerging from the collapse of public trust in the traditional financial system, financial nihilism represents a mindset in which people view the financial system—including money and investment practices—as lacking real value or meaning,” Matić says. According to the specialist, “traders who agree with this often prefer high-risk, high-reward investments, such as meme stocks and memecoins.” It is for this reason – says Matić – that «memecoins continue to grow and exhibit unique market dynamics during their 'supercycle'.»
«The influence of memecoins is undeniable. Currently, ten of the top 100 cryptocurrencies are memecoins. “This trend underscores its enduring appeal and ability to capture investor interest.” Marija Matić, financial analyst.
According to the author of Weiss Rating, Interest in Meme Cryptocurrencies Likely to Continue as long as the market remains in a phase of low volatility. This is because, in such a context, “memecoins offer leveraged exposure and the possibility of substantial profits,” he says. Matić adds that “investors are already tired of excess supply and venture capitalists who extract value before the tokens are launched” and that is why they go to memecoins, which are often community projects and do not have a company behind them. . But, according to this analyst, the wind in favor of memecoins will not be eternal. “As more serious sectors start to gain momentum, liquidity could shift to them as investors gradually adopt capital protection strategies over time,” he explains. Still, for Matić, “potential profits can still be found in memecoins, if you know where to look.” In his opinion, there is four keys that could be useful to investors to find profitable memecoins. First of all, he points out that it is good to consider those that have bounced the hardest after general market declines. «Often that indicates a robust community and sustained interest,» he says. Secondly, Matić believes that you have to look at the growth of the community. In particular, he finds «tokens with growing social activity and an increasing number of holders» interesting. As a third point, he explains that “the memecoins that are listed—or better yet, that are about to be listed—in major exchanges like Binance and Coinbase “They often gain credibility, attracting more investors and improving liquidity.” Lastly, he suggests «back to basics». She defines this as “prioritizing coins free of internal control, pre-sales, and venture capital influences.” He notes that “tokens that thrive through organic community participation often last.”
Memecoins… Investment or casino?
However, although memecoins can offer big profits in the short term, they are still a highly speculative bet. Their extreme volatility makes them unpredictable assets, where the same thing that can be gained in a short time can also be lost. As with gambling, the longer one stays in it, the greater the risk of ending up with losses. Unlike cryptocurrencies with solid technological or economic fundamentals, memecoins usually have no real utility behind themwhich makes them much more vulnerable to sudden changes in market sentiment. They rise quickly when they capture collective interest, but they can also fall just as quickly when investors withdraw. Ultimately, although some people may find opportunities in this space, It is essential to be aware of the high risk involved. As in any bet or game of chance, most end up losing more than they win.
Clarification: This article was written for informational purposes. It does not constitute an investment recommendation or financial advice.