Last week, Bloomberg experts warned holders of “meme” cryptocurrencies that in 2022 the digital asset market may begin to get rid of joke and useless tokens. Mike McGlone, senior commodities strategist at Bloomberg Intelligence, expressed the same opinion in an analytics report, citing the high popularity of “meme” tokens as a side effect of the market overheating in 2021.
RBC-Crypto experts explained what prospects “meme” cryptocurrencies have and whether it is worth starting to get rid of them.
Cleansing of pacifiers is inevitable
The development director of the EXMO crypto exchange agreed with the opinion of Mike McGlone. In her opinion, along with the formation of the cryptocurrency market, its natural purification from empty projects will inevitably occur. However, while the industry is in its infancy, where, with the almost complete absence of regulation, most market participants feel quite free, the expert explained.
As an example, Stankevich cited the situation with Elon Musk and McDonald’s, where after the publication of a fast food restaurant chain on Twitter, a Grimacecoin token was created, the value of which at the moment increased by more than 200,000%.
This comes after McDonald’s announced on Twitter that it was ready to add “meme” Dogecoin cryptocurrency to payment methods if Tesla starts accepting the defunct Grimacecoin token. So the fast food restaurant chain responded to the call of Tesla and SpaceX CEO Elon Musk to start accepting Dogecoin as a means of payment. The businessman said that he was ready to eat “Happy Meal” live if the network starts accepting “meme” cryptocurrency.
“It is difficult to imagine a similar situation in the traditional finance market, which is why most classical traders look at cryptocurrencies as a sandbox where children play,” said Stankevich.
Soon the number of empty projects will really decrease, the expert is sure. However, as long as the cryptocurrency market is not properly regulated, there will always be people who hope for a magical way to make quick money without doing anything, Stankevich added.
Meme tokens don’t stand a chance
The global correction of financial markets, which may have already begun, leaves no chance for growth for the entire crypto market, and in particular for “meme” cryptocurrencies, says Artem Deev, head of the analytical department at AMarkets. According to his forecast, the main market assets — bitcoin and Ethereum — may be in a serious drawdown, and in these conditions, other tokens will decline.
“It’s worth gradually getting rid of “meme” cryptocurrencies, especially since the high demand for them is behind us,” Deev advised.
The analyst also urged not to ignore the fact that the “meme” cryptocurrencies may fall even more if the Fed raises rates. In this case, investors will massively dump risky assets, Deev explained.