Understanding the High Failure Rate of Meme Coin Projects
A recent study by Chainplay has revealed a shocking 97% failure rate for meme coin projects since 2024, with an average lifespan of just one year compared to traditional crypto projects lasting around three years.
- The Mortality Rate of Meme Coin Projects:
- According to AlphaQuest, approximately 2,020 meme coin projects perish each month.
The research also highlights the different mortality rates of meme coins on various blockchain platforms, with Base leading at 66.91%, followed by Solana at 54.03%, and Ethereum at 36.59%. Additionally, over half of meme coins (55.24%) are associated with malicious activities.
- Investor and Media Outlook:
- The perception of meme coins varies among investors based on their experience, with 60% viewing them as short-term investments.
- New investors, especially those active for less than six months, consider meme coins crucial, contrasting with experienced investors who exhibit greater caution.
- Media reports on meme coins are predominantly cautious, with only 13.77% being bullish.
The Importance of Thorough Research for Investors
Chainplay’s research underscores the significance of conducting thorough research into meme coin assets due to the high prevalence of scams. Audit reports have been particularly effective, accurately predicting scam projects in 81% of cases. This highlights the necessity of due diligence for investors navigating the volatile meme coin market.
For more information, you can refer to the original study by Chainplay by visiting their website: Chainplay Website
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