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In a nuanced critique published on X, a prominent Dogecoin contributor known as @Mishaboar has issued a significant warning concerning the trading of meme coins, especially those that secure listings on cryptocurrency exchanges almost immediately after their release. The contributor, who is a key figure within the Dogecoin community, used his platform to outline the potential pitfalls that unsuspecting investors might face. 
<h2 id="the-risks-of-memecoins">The Risks Of Memecoins</h2> 
@Mishaboar <a href="https://twitter.com/mishaboar/status/1782835678335598620" target="_blank" rel="noopener nofollow">expressed</a> deep concerns regarding the current trend in the crypto markets where meme coins quickly achieve market capitalizations in the millions or even billions of dollars, facilitated by almost instantaneous listings on major exchanges. He stated, “There is an explosion in tokens that go up to crazy market caps, with instant listings (within days) on large exchanges (sometimes in spite of red flags).” This phenomenon, he argued, typically indicates significant backing from <a href="https://bitcoinist.com/bitcoin-crypto-rollercoaster-ride-for-2-years/" target="_blank" rel="noopener ">venture capitalists</a> (VCs) and crypto exchanges themselves. 
According to @Mishaboar, the rapid listing of these tokens is often prearranged through partnerships between token creators and crypto exchanges. “These big players usually hold a large portion of the tokens and may strike deals with exchanges before the tokens launch,” he explained. This arrangement allows them to profit from initial trading surges, while also increasing the nominal liquidity on their platforms at minimal cost. Such practices raise questions about the transparency and fairness of the token launch and listing process. 
He also highlighted the role of influencers in shaping the market perception of these tokens. “Influencers tend to create a narrative around these tokens claiming they are ‘community run’, that they are your ‘frens’, but this is often really not the case,” @Mishaboar noted. He argued that these narratives are crafted to mask the centralized, profit-driven nature of these token launches, misleading the <a href="https://bitcoinist.com/dogecoin-community-doge-day/" target="_blank" rel="noopener ">community</a> about the true character and governance of these tokens. 
Revisiting past controversies, @Mishaboar brought up unresolved questions about potential insider trading activities of BOME, especially regarding how platforms like <a href="https://bitcoinist.com/breaking-binance-founder-zhao-3-years-in-jail/" target="_blank" rel="noopener ">Binance </a>quickly list new and risky tokens. “I have a question regarding Binance’s involvement in the launch of certain tokens. Specifically, does Binance have pre-launch agreements with any of the artists or creators of these tokens?” he asked. This question aims to uncover whether there’s a deliberate strategy to manage risks for users or if the rapid listing process inherently increases the risks for them. 
Expanding on the general risks associated with memecoins, @Mishaboar differentiated between various types of tokens. He emphasized that while some memecoins might have a community aspect, others are “100% VC backed” and are typically those that see instant exchange listings. “Not all tokens are the same,” he declared, urging traders to recognize the high-risk nature of these investments. Dogecoin’s Status And Future Outlook 
Addressing a user’s concerns about Dogecoin’s projects and asset status, @Mishaboar provided reassurances about the ongoing development and stability of Dogecoin’s network. “Dogecoin’s network is chugging along just fine, and 1.14.7 was released a couple of months ago,” he confirmed. He highlighted the continuous efforts of volunteer developers who have significantly reduced technical debt since 2021, improving the overall health of the network. 
He added, “We will have new releases of Dogecoin Core (the reference implementation) and there are companies and organizations and indie devs building stuff for it. As for companies (e.g. like X or <a href="https://bitcoinist.com/dogecoin-gains-momentum-as-musk-hints-at-future-tesla-payments-is-doge-going-to-the-moon/" target="_blank" rel="noopener ">Tesla</a>) integrating it into their platforms, this is really up to these companies and the laws they must comply to. Technically there is nothing missing in Dogecoin that would prevent them from adopting it.” 
In concluding his extensive remarks, @Mishaboar reiterated the importance of vigilance and informed decision-making in the cryptocurrency market. He reminded his audience that despite the allure of quick profits, the volatile nature of memecoins means that trading them is akin to gambling, with risks varying significantly across different tokens and market caps. 
At press time, Dogecoin traded at $0.1615. 
<img loading="lazy" decoding="async" class="size-full wp-image-296388" src="https://bitcoinist.com/wp-content/uploads/2024/04/DOGEUSD_2024-04-24_14-57-07.png?resize=1024%2C472" alt="Dogecoin price" width="1024" height="472" srcset="https://bitcoinist.com/wp-content/uploads/2024/04/DOGEUSD_2024-04-24_14-57-07.png?resize=1024%2C472?w=3628 3628w, https://bitcoinist.com/wp-content/uploads/2024/04/DOGEUSD_2024-04-24_14-57-07.png?resize=1024%2C472?w=640 640w, https://bitcoinist.com/wp-content/uploads/2024/04/DOGEUSD_2024-04-24_14-57-07.png?resize=1024%2C472?w=768 768w, https://bitcoinist.com/wp-content/uploads/2024/04/DOGEUSD_2024-04-24_14-57-07.png?resize=1024%2C472?w=980 980w, https://bitcoinist.com/wp-content/uploads/2024/04/DOGEUSD_2024-04-24_14-57-07.png?resize=1024%2C472?w=1536 1536w, https://bitcoinist.com/wp-content/uploads/2024/04/DOGEUSD_2024-04-24_14-57-07.png?resize=1024%2C472?w=2048 2048w, https://bitcoinist.com/wp-content/uploads/2024/04/DOGEUSD_2024-04-24_14-57-07.png?resize=1024%2C472?w=750 750w, https://bitcoinist.com/wp-content/uploads/2024/04/DOGEUSD_2024-04-24_14-57-07.png?resize=1024%2C472?w=1140 1140w, https://bitcoinist.com/wp-content/uploads/2024/04/DOGEUSD_2024-04-24_14-57-07.png?resize=1024%2C472?w=3000 3000w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1">

Dogecoin Contributor Issues Critical Alert On Memecoins

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