Investment giant Franklin Templeton published a note for investors in which the company’s analysts claim that meme coins can provide quick profits despite a complete lack of utility.
American international investment firm Franklin Templeton published a note for investors on meme coins. The document states that despite its drawbacks, this digital asset class has some investment advantages in the short term.
The company’s analysts claim that meme coins can be a source of quick profits. They also noted that investments in this asset class don’t require extensive technical knowledge, and token transactions have low fees compared to other cryptocurrencies. It is these features of meme coins and their high volatility that makes the asset attractive for short-term investments, according to representatives of Franklin Templeton.
However, analysts separately emphasized that meme coins have no value or utility, and their prices directly depend on their popularity and buzz around them. For example, Elon Musk’s recent remark that a Tesla car could be bought in the future with DOGE boosted the asset’s quotes by 12% within three hours.
Thanks to their “unique nature,” the popularity of tokens grew significantly over the past year, Franklin Templeton analysts said. According to CoinGecko, the total market capitalization of meme coins is $65.6 billion, or about 2.25% of the total crypto market cap.
Meme coins react most actively to changes in the crypto market. The recent rise in the price of BTC had the greatest impact on the quotes of meme coins. Whether meme coins can be considered a reliable investment instrument can be found in a special article by CP Media.
