Matrixport top manager compared investments in meme tokens with a lottery

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Matrixport Head of Research Markus Thielen (Markus Thielen) compared investing in meme cryptocurrencies to playing lottery games.

In an interview with Cointelegraph, MarcusThielen noted that meme tokens have seen a huge surge in recent weeks. At the beginning of the month, the capitalization of the PEPE memecoin, dedicated to Pepe the Frog, exceeded $1 billion, and sales of collectible Milady tokens grew by more than 2,000%, fueled by a tweet from Tesla CEO Elon Musk. Thielen noted that despite the stunning jumps in the rates of such tokens, they have no practical value.

"Many people from low social classesplay the lottery - in this way they try to get out of the bottom and increase their well-being. They take risks in lotteries to make money at lightning speed, and this is very similar to meme cryptocurrencies,” Thielen said.

Thielen noted that many usersespecially young people buy memcoins for entertainment. They are betting on their popularity, which undermines the principles underlying long-term investing. The value of meme tokens depends on the sentiment of the community, so their price is almost impossible to predict.

Matrixport top manager warns investorsfrom investing in memcoins, the development team of which is unknown, and there is no project roadmap. Thielen noted that when trading such tokens, you need to save your investments in time and leave at the right time, so when buying high-risk assets it is important to set a stop loss.

Let us recall that recently the cryptocurrency exchange Coinbase also spoke poorly about meme cryptocurrencies, in particular about PEPE. This caused a wave of outrage in the crypto community.