Ethereum

2024

Memecoin

New research by Chainplay highlights a staggering 97% failure rate for meme coin projects since 2024. 
The data shows that meme coins have an average lifespan of just one year, while typical crypto projects last about three years. 
<h2 id="the-mortality-rate-of-meme-coin-projects">The Mortality Rate of Meme Coin Projects</h2> 
According to AlphaQuest, a crypto research tool, an average of 2,020 meme coin projects die each month. 
<blockquote class="twitter-tweet"> 
 State of Memecoin 2024: High Risk, High Reward 
 Memecoins: A rollercoaster of fortunes or a financial minefield? Our latest study of 30,000 projects unveils the shocking realities behind the hype. 
 Key findings: <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/26b0.png" alt="⚰" class="wp-smiley" style="height: 1em; max-height: 1em;">97% of memecoins have died since 2024 <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/23f3.png" alt="⏳" class="wp-smiley" style="height: 1em; max-height: 1em;">Average lifespan:… <a href="https://t.co/rOvHreXq8X" data-wpel-link="external" target="_blank">pic.twitter.com/rOvHreXq8X</a> 
 — ChainPlay.GG (@Chainplaygg) <a href="https://twitter.com/Chainplaygg/status/1820725751437775186?ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank">August 6, 2024</a>
</blockquote> 
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
The research also highlights the varying mortality rates of meme coins across different blockchain platforms. Base leads with a death rate of 66.91%, followed by Solana at 54.03% and Ethereum at 36.59%. 
In addition to their high <a href="https://cryptopotato.com/celebrity-meme-coins-plunge-94-from-peak-values-on-average-data/" data-wpel-link="internal">failure</a> rates, meme coins are often linked to malicious activities, with over half (55.24%) classified as such. 
Despite these risks, these cryptocurrencies remain appealing to investors, especially those seeking quick gains. The research indicates that nearly 60% of investors in this asset class view them as short-term investments. 
The study also shows that these coins have become a significant part of many crypto portfolios, with two-thirds of crypto investors having invested in them at some point. 
<h2 id="investor-and-media-outlook">Investor and Media Outlook</h2> 
The perception of meme coins varies significantly among investors based on their experience. While 54% of all meme coin investors do not view these assets as essential to their portfolios, nearly 58% of new investors—those active for less than six months—consider them crucial. 
In contrast, only a third of investors with over a year of experience regard them as must-have assets, suggesting that increased expertise leads to greater caution. 
The media’s perspective reflects similar caution. The study found that only 13.77% of news reports on meme coins are bullish, indicating a predominantly cautious outlook. 
Chainplay’s research also <a href="https://chainplay.gg/blog/state-of-memecoin-2024/" data-wpel-link="external" target="_blank">emphasizes</a> the importance of thorough research into these assets, especially given the high prevalence of scams. 
They noted that audit reports have proven to be a valuable tool in this regard, correctly predicting whether a meme coin will turn out to be a scam in 81% of cases. 
The research underscored the importance of due diligence for investors navigating the market within this asset class. 
The post <a href="https://cryptopotato.com/a-shocking-number-of-meme-coins-have-failed-in-2024-study/" rel="nofollow">A Shocking Number of Meme Coins Have Failed in 2024: Study</a> appeared first on <a href="https://cryptopotato.com/" rel="nofollow">CryptoPotato</a>.

A Shocking Number of Meme Coins Have Failed in 2024: Study

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