The truth about meme coins - by the time you hear about one, it's way too late to make money on it. The only people who make money are founders and crypto insiders. Ordinary people are there to be exit liquidity and that's it.

I see meme coins are starting to make a comeback and I want to warn all you investors out there before you get sucked into the fantasy of becoming a millionaire from $100 of meme coins.

The fact about crypto in general is that 99% of the time the vast majority of money made from a token is made by the founders and other crypto insiders... I'm talking about the big returns you hear about like $100 turning into a million. Obviously us plebians can make returns by buying ETH and seeing it double over the course of years, but I know that the fantasy of taking a $100 and turning it into seven figures is incredibly alluring.

What happens is that the founders and crypto insiders invest in the tokens before they start hyping them. The hyping process is there to create exit liquidity for the founders and insiders. The plebians are there to take the inevitable loss since meme coins have no real utility or value so they always crash sooner or later.

Of course there have been the odd plebe here or there whose hit it big with meme coins but they are far and few between. Please please please don't fall for meme coins... Maybe we can even put them out of existence through just ignoring them.

ETA: what prompted me to write this post is seeing all the posts trying to promote PEPE...like the article about someone turning $27 into a million. I can tell you for certain now that buying PEPE at this point will not give you this type of return and is highly likely to leave you with a loss. Also a small number of connected wallets hold a significant portion of the coins...lastly don't forget that meme coins are very vulnerable to rug pulls and scams. Security and integrity are not important to the people behind these coins.