Away from the turmoil of the prolonged bear market, BONK INU, the latest meme coin craze, is on the timeline of everyone, and I bet you are reading this article, looking to get insights about the token and whether or not you should put some money in it; well, keep reading.
If you are not so familiar with crypto, the term “meme coin” may be quite alien to you; however, it’s nothing difficult to understand. Meme coins are typically created as a joke or for entertainment purposes and are not intended to be taken seriously as a legitimate investment opportunity. However, during the last two bullish runs, some meme coins have exploded in popularity and have seen significant price increases, leading many investors to consider them a possible investment for quick gains.
What Are Meme Coins, and What Do They Represent In The Cryptocurrency Ecosystem?
Meme coins are digital assets that are created with the intention of being humorous or satirical. They are often based on internet memes, pop culture references, or other forms of popular entertainment. Some popular examples of meme coins include Dogecoin, based on the "Doge" meme, a misspelled version of “Dog” that became popular in the 2010s on social media platforms, particularly Reddit. When crypto started gaining little popularity, with the likes of Bitcoin and Litecoin making waves, Dogecoin was launched, riding on the “Doge” meme wave.
DOGE investors gained a lot from its initial popularity, rewarding investors with gains of over 1,000%; in the 2017 bullish run, DOGE gained about 3,000%, and in the most recent 2021 bullish run, DOGE gained about 9,000%.
Given DOGE’s success, many animal-themed meme coins have sprung up. The most common, in recent times, is the Shiba Inu (SHIB) token, which rode on the most recent bullish run in 2021 to amass over 10 million percent, making investors stupendously rich.
Several dog-themed meme coins have since been created, each wanting to be the next SHIB or DOGE, but unfortunately, because they are so many projects, most struggle to gain popularity. However, BONK INU (BONK) broke through this January, setting the crypto space into intriguing suspense. While some have “aped in” quickly to benefit from any possible stupendous gains, others are patient and trying to see what the market really holds for BONK.
Is it Safe To Invest in BONK INU?
Despite the significant price increases of some meme coins, it is important to note that they are still highly risky investments. Because they are not based on any tangible assets or underlying technology, their value is largely based on speculation and hype driven by the community. This means their value will remain high as long as it rides on popularity, making more people invest tokens in it; on the flip side, it can also fluctuate and drop to zero if the community loses its drive.
Furthermore, because meme coins are not created with the intention of being taken seriously as a legitimate investment opportunity, they are not as secure as other cryptocurrencies that go through multiple audits and other measures to keep investors safe; this means that there is a higher risk of scams or fraud associated with meme coins.
Hence, BONK INU, like other meme coins out there, could be a risky investment, and if you are considering investing in it, hoping to ride on the wave, it is important to proceed cautiously. Here are some tips to consider:
- The Crypto Market Is Still In A Bear Season: One common factor with the enormous gains experienced by DOGE and SHIB was the existing bullish run, both in 2017 and again in 2021. Undoubtedly, the existence of a generally positive investor sentiment was a huge plus.
Indeed, the bear market appears to be in its twilight, but given the several unfortunate events that occurred last year, it may be too early to make such conclusions. Generally, investing in a bear season is risky, and it could all collapse if many of the other coins move in a downward spiral. - Diversify your portfolio: As with any investment, it is important to diversify your portfolio to spread your risk. This means that you should invest only a small percentage of your investment capital in BONK INU; invest in other crypto assets, even away from meme coins. Don’t fill up your crypto portfolio with just meme coins; the hype could all die simultaneously. Instead, consider investing in various assets, even beyond crypto, to reduce your risk.
- Understand Your Risk Appetite: It is quite common to see many people on social platforms like “coinfessions,” stating how they have lost their tuition fee, rent, pension, and payments for hospital bills to one investment or another due to their greed, and wanting to become overnight millionaires.
As with any high-risk investment, it is important only to invest money you can afford to lose; hence, do not buy BONK INU or any other meme coins with the money you need for essential expenses. - Be Wary of Hype: It is easy to get caught up in the current hype surrounding BONK INU, like many meme coins in the past; however, it is important to remain level-headed and not let your emotions cloud your judgment. Be sure to do deep research and make investment decisions based on reliable information rather than just following the crowd.
For all we know, the hype could all be an organized “pump and dump” scheme aimed at getting people to invest while the early investors/whales sell all their tokens, leaving everybody else with worthless tokens.
Final Words
In conclusion, while some meme coins have seen impressive price increases in the past, it is important to proceed with caution when considering investing in them. Meme coins are highly risky, and their value is largely based on speculation and hype driven by online communities. It is essential to do your own research, diversify your portfolio, and only invest what you can afford to lose. Also, be wary of scams and fraud, as meme coins are not subject to the same security oversight as other cryptocurrencies.
The above information is only for educational purposes and should not be construed as financial advice. For more beginner Tips, as well as detailed guides on Cryptocurrency and Blockchain Technology, do well to visit the Cwallet Blog (Previously CCTIP Blog) and follow our social media communities: