Presidentially-backed memecoins including TRUMP, LIBRA and CAR have emerged to capture the crypto market speculation of late, but they have also resulted in significant investment losses for most people.
A joint research study report by ChainPlay and Storible proves that high-profile memecoins such as TRUMP and LIBRA have failed most investors who acquired them, costing a collective loss of $3.94 billion. Additionally, a survey was conducted of over 1000 crypto investors where at least 80% claimed to have bought $TRUMP, $CAR and $LIBRA memecoins, that were endorsed by different presidents including Donald Trump.
According to the survey report, 2/3rd of all TRUMP and LIBRA investors have experienced significant loss in crypto investments. Worldwide, a total of $3.6 billion in losses stems from the trading decisions of TRUMP investors where 52% drop their financial investments in the memecoin.
The LIBRA memecoins under the support of Argentina’s president proved to be a major failure as investors lost $292 million from 75% of their investments. Car delivered modest return success to its investors though sixty-six percent of stakeholders lost money. Viral marketing along with political relevance pulled 37% of novice crypto buyers towards purchasing such memecoins that received presidential endorsements.
Many investors abandoned cryptocurrency after their experiences with these volatile tokens because they decided to leave the market altogether. Twenty-one percent of them chose complete departure from crypto. The interest in political-themed memecoins appears to produce short-term engagement that leads new investors towards skepticism about cryptocurrency market opportunities.
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