Many memecoins have produced staggering returns since the start of 2024, but their lack of utility and the proliferation of scams have raised questions about their long-term stability.
Despite the recent craze surrounding Bitcoin (BTC) — which saw the digital asset hit an all-time high of $73,600 in March — the memecoin sector has been the most profitable crypto narrative so far in 2024, registering average returns of over 1,300% across the top tokens by market capitalization.
Several memecoins have seemingly taken the market by storm overnight, with newly launched offerings, such as Book of Meme (BOME), Brett (BRETT) and Cat in a Dogs World (MEW), shooting up the rankings to become top 10 meme projects in a matter of weeks. Amid this frenzy, many traders have managed to turn small investments into life-changing sums.
For example, one investor turned $13,000 into over $2 million in just an hour by investing in the Donotfomoew (MOEW) token shortly after its initial decentralized exchange (DEX) listing on April 3. According to reports, the trader first purchased 499.9 million MOEW for four Ether (ETH) minutes after its debut. Less than an hour later, the trader sold 111.65 million MOEW tokens for 99 ETH, worth around $328,000 at the time.
