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No more than a playful meow from one of the most influential personas in the Web3 industry is sometimes enough to stir up the market. Recently, Ethereum founder Vitalik Buterin's lighthearted cat-themed post echoed through the crypto community, inciting a flurry of meme coin creations.
Buterin's innocuous "Let's meow together" tweet translated from Mandarin may have been in jest, yet it inadvertently waved the flag for the launch of multiple meme coins on various blockchain platforms, including Solana and Ethereum.
Among newly launched meme coins, several assets experienced dramatic changes in liquidity and price performance. For instance, a meme coin tagged "MEOW/WETH" saw a 24-hour price change of -1.44%, with $78,000 in trading volume, while another, VITALIKED/SOL, faced a -100% price change, most likely being the aforementioned rug pull.
The rapid generation and subsequent rug pulls of these tokens is a great reminder for anyone who wants to go all-in on memes. The meme coin industry is one where influence and hype always overshadow fundamentals. While some traders ride the wave of these trends for substantial gains, the landscape is fraught with risks, as scam artists lurk, ready to withdraw liquidity without warning.
While Buterin may not be as active as Musk in the social media arena, his influence on the crypto community is profound. Traders should be mindful of the influence wielded by crypto leaders and approach meme coin investments with diligence. Verifying liquidity — ensuring it is locked or sufficiently deep to prevent rug pulls — and monitoring asset performance are critical steps in safeguarding yourself.
While the meme coin space may offer a playground for the risk-tolerant and trend-savvy, it is wise to remember that not all that glitters in Web3 is gold.
Godfrey Benjamin
