And actually, in investing, nothing is completely safe. It's just that some have a low risk level and some have a high risk level. Meme coin is the highest level of risk and also the most unsafe. Because everything is driven based on community sentiment and market sentiment towards the meme coin. So we must always be careful if we want to enter meme coin. We can enter it, we just have to have funds that are ready if we have to lose. We have to be prepared for the risks, which are indeed big. but the potential for fast profits can also be another attraction.
Exactly. Some Investors likes taking the risk in investing in memecoin because they can easily get profits from it when it experiences a minor surge. That's why some of these memecoin sometimes experiences dump in the early phase of it's introduction, as no one wants to be on the lossing side. Even though these memecoins are naturally of a greater risk, some investors still go extra length in risking more, thereby Investing larger capital. The reason for this is basically to end up with greater profits if things turns out to be great, i.e if the memecoin turns how great.
Recently, we all heard about the news of the investor that purchased around $1.03million mbappe memecoin. But things didn't go well for his investment, as the project turns out to be a scam(pump and dump) project. But we could imagine the unimaginable amount a single individual was willing to risk for a memecoin, which shows the level of risk that some investors are willing to take when it comes to acquiring memecoin for potential profitable reasons.
Assuming the investor decided to channel that amount into Bitcoin during the recent dip, he would have surely made some profits, which would be enough to invest in other smaller projects. The risk associated with Bitcoin is far lower than the risk of altcoins.