U.S. Crypto Investors Are Still Piling Into Memecoins Despite the Huge Risks: Kraken

6 months ago

A survey by the crypto speech showed that 85% of integer plus holders successful the U.S. invested successful memecoins.

Updated Feb 19, 2025, 9:03 a.m. UTCPublished Feb 19, 2025, 3:00 p.m. UTC

Crypto investors are inactive piling into memecoins contempt the outsized risks associated with this benignant of integer asset, Kraken said successful a study connected Wednesday, aft conducting a survey of holders successful the U.S..

85% of respondents said that they invested successful memecoins, and 76% said they believed the "potential rewards warrant the risks."

Somewhat surprisingly, "44% of crypto holders judge memecoins volition amended the credibility of the crypto market," and 42% said they expected them to outperform different cryptocurrencies this year, the study said.

Fear of missing retired (FOMO) was cited arsenic 1 of the apical reasons for investing successful these highly volatile cryptos. Recommendations from friends and family, and the amusive quality of the tokens were besides mentioned arsenic reasons to invest.

Memecoins person been grabbing attraction recently, but for each the incorrect reasons. The evident LIBRA token rugpull has engulfed the Argentinian government. The crypto surged to a marketplace headdress of astir $4.5 cardinal earlier crashing 90%.

29% of memecoin holders said short-term summation was the main crushed they bought these cryptocurrencies, with 23% citing diversification arsenic different crushed to invest.

Women were much apt to bargain these cryptocurrencies than men. 86% of pistillate crypto holders said they invested successful memecoins versus 84% of men, the survey showed.

Kraken surveyed astir 800 crypto holders successful the U.S. connected Jan. 9 2025.

Will Canny

Will Canny is an experienced marketplace newsman with a demonstrated past of moving successful the fiscal services industry. He's present covering the crypto bushed arsenic a concern newsman astatine CoinDesk. He owns much than $1,000 of SOL.