Study shows staggering number of meme coins failing in 2024

New analysis from Chainplay highlights that since 2024, the failure price of meme coin initiatives is as excessive as 97%.

Information reveals that the typical lifespan of meme cash is only one 12 months, whereas typical crypto initiatives final about three years.

Mortality price of Meme coin initiatives

In line with knowledge from cryptocurrency analysis software AlphaQuest, a mean of two,020 meme coin initiatives die each month.

The state of Memecoin in 2024: Excessive threat, excessive reward

Memecoins: A curler coaster of wealth or a monetary minefield? Our newest analysis of 30,000 initiatives reveals the surprising actuality behind the hype.

Key findings:
⚰️97% of memecoins have died since 2024
⏳Common lifespan:… pic.twitter.com/rOvHreXq8X

— ChainPlay.GG (@Chainplaygg) August 6, 2024

The examine additionally highlights the various mortality charges of meme cash on completely different blockchain platforms. Base leads with a mortality price of 66.91%, adopted by Solana (54.03%) and Ethereum (36.59%).

besides for his or her excessive fail price, meme cash are sometimes related to malicious exercise, with greater than half (55.24%) labeled as such.

Regardless of these dangers, these cryptocurrencies stay engaging to buyers, particularly these in search of fast good points. Analysis reveals that almost 60% of buyers on this asset class view it as a short-term funding.

The analysis additionally reveals that these tokens have turn out to be an vital a part of many cryptocurrency portfolios, with two-thirds of cryptocurrency buyers investing in them in some unspecified time in the future.

Investor and Media Outlook

Buyers’ views on memecoins fluctuate broadly primarily based on their expertise. Whereas 54% of memecoin buyers don’t take into account these belongings vital to their portfolios, practically 58% of latest buyers (these energetic for lower than six months) take into account them vital.

In distinction, solely one-third of buyers with multiple 12 months of expertise view it as essential asset, suggesting that elevated experience results in higher warning.

Media views replicate the same warning. The examine discovered that solely 13.77% of reports experiences about meme cash have been bullish, indicating that persons are cautious in regards to the outlook.

Chainplay’s analysis additionally emphasize You will need to conduct thorough analysis on these belongings, particularly given the excessive prevalence of scams.

They be aware that audit experiences have confirmed to be a helpful software on this regard, appropriately predicting whether or not a memecoin will turn out to be a rip-off 81% of the time.

The analysis highlights the significance of due diligence for buyers navigating the market on this asset class.