Prior to his passing, former Berkshire Hathaway Vice Chairman Charlie Munger dismissed crypto as “worthless,” “no good,” “disgusting,” “evil,” and “massively stupid.”
When it comes to the meme coins his death inspired this week, Munger may have been on to something.
The Ethereum-based MUNGER token, which launched within 15 minutes of the finance mogul’s death and quickly pumped some 31,000%, has since crashed 97.6% in value to a current valuation of $0.00000002856, according to data from GeckoTerminal.
The coin’s market capitalization has comparably plummeted to just over $18,000 at writing. Its liquidity, meanwhile, has evaporated to around $13,000.
Market Activity and Volatility
Market activity for the coin, which saw a whopping $3.57 million in trading volume in its first 24 hours, has also collapsed. Just one day later, only $23,000 worth of MUNGER has traded hands in the last 24-hour period. In the last six hours, the coin has only seen 12 transactions.
Such volatile pump-and-dump action is all too common for memecoins like MUNGER, which often inflate wildly on a piece of news or pop culture, only to completely collapse within a matter of days. Here, it took less than 48 hours for the Munger-inspired token to shed the overwhelming majority of its value.
Meme Coins and their Trend
Last week, a freshly-minted CZ token created in the immediate aftermath of Changpeng Zhao’s shocking resignation as Binance’s CEO, pumped 400,000%. It has since collapsed in value by 93%.
Now we’ll just have to see if the fresh crop of meme coins inspired by the death of 100-year-old diplomat Henry Kissinger will beat the trend. Don’t hold your breath—else you might become fodder for a funerary meme coin yourself.
Hot Take: Meme Coins and Their Volatility
Meme coins have gained significant popularity in the cryptocurrency space. They often experience extreme price fluctuations driven by hype, news events, or cultural references. However, these coins are notorious for their short-lived success and subsequent crashes in value.
The recent example of the MUNGER token highlights this trend. Launched shortly after Charlie Munger’s death, it experienced an astronomical surge in value but quickly lost almost all of its worth. Similarly, the CZ token linked to Binance’s CEO resignation followed a similar trajectory.
While meme coins can provide opportunities for quick gains, investors should exercise caution and be aware of the high risks associated with these volatile assets. The unpredictable nature of meme coins makes them a speculative investment that may result in significant losses.
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