*Why Meme tokens are double edged sword *
Meme tokens like $DOGE and $SHIB can be profitable due to their reliance on hype, social media buzz, and community engagement. Investors often experience rapid gains as these coins surge in popularity, sometimes driven by endorsements from public figures or viral trends. For example, Dogecoin initially gained mainstream attention due to Elon Musk's support, while Shiba Inu's popularity soared through targeted marketing and a strong community presence.However, these tokens are also extremely risky because their prices are highly volatile and speculative. The lack of fundamental value or real-world utility makes meme tokens susceptible to massive price swings and market manipulation. For instance, Dogecoin holders saw gains earlier in 2024 but also experienced sharp corrections, with the price dropping by over 40% during market downturn. Additionally, investors entering during hype peaks may face losses as sentiment shifts, which makes timing crucial for profitability.Overall, while meme tokens can provide short-term profits, the risks of sudden declines and the absence of intrinsic value require cautious investing.
