If you are a memecoin degen trader, beware of fake memecoins that will pump and dump faster than Elon Musk can think up his next tweet, writes Molly Jane Zuckerman.
It's dangerous to joke in the crypto space.
This week, everyone's favorite dog-coin lover Elon Musk tweeted that he would eat a McDonald's Happy Meal on TV if the fast food chain began accepting Dogecoin.
First off, who really needs to see Elon Musk eating a burger on TV?
But moving on — McDonald's had a response ready, and it was almost as nonsensical as Musk's proposal. McD's would accept DOGE when Tesla began accepting Grimacecoin.
What is Grimacecoin, you may ask? Well, Grimace is "a rotund, purple being of indeterminate species with short arms and legs" in the McDonald's universe.
Financial site Benzinga even published an entire guide into buying GRIMACE, with sections such as: "Is GRIMACE a good investment?"
No, GRIMACE is not a good investment. It. Is. Not. Real.
But McDonald's made it real! And this is not the first time that a big company making a joke about a fake coin led to real people trading it — remember CoinMarketCap's (amazing) 2020 April Fool's joke, when we listed Toilet Paper Token (TPT) as #0 on our homepage? TPTs began trading everywhere!
The lessons to be learned from this are both specific and broad.
1. If you are a company and you tweet about a fake coin, expect it to be traded on a DEX within the hour.
2. If you are a memecoin degen trader, beware of fake memecoins that will pump and dump faster than Elon Musk can think up his next tweet.