Eminent hedge funds and venture capital firms, according to a Nasdaq report, have started investing in meme coins. These digital assets were once ridiculed but are now considered to have high growth potential.
For example, Stratos which is backed by Mark Andresseen of Andresseen Horowitz, and Pantera Capital, a crypto-oriented hedge fund, have invested in Dogwifhat (WIF) and Shiba Inu (SHIB) meme coins respectively.
Even small investments can yield astronomical returns. Based in the report, Shiba Inu gained a mind-boggling 221% over the past three years during its 2021 bull run making overnight millionaires out of early investors for a short while. Also the lower the market cap of meme coins the higher the possible profits, such prospects are mouth-watering for wealthy investors.
Nonetheless, meme coins are highly volatile and risky; many will probably crash and burn say analysts. Nevertheless, if professional money managers can calculate risks then these digital memes’ upside potential seems too good to ignore.
In this craze of meme coin mania that has taken over the crypto world; institutional investors may still strike gold or chase another large bubble yet. One thing is certain though, meme coin fever hasn’t ended.
Also Read: Bitcoin and Ethereum Soar as Furrever Offers $10K Prize
