Lark Davis has issued a warning about the meme and celebrity coin trend, calling it a risky proposition. Traders would do well to be on their guard, he says, as the tokens in this space are all too frequently vehicles for scams or abrupt collapses that can see millions of dollars vanish in short order.<\/p>\n
Take the case of the Kimchi token: a repost on social media was enough to spark a run on it, putting $14 million of value into the token in just ten minutes, Davis notes. But with the post\u2019s deletion came an almost immediate devaluation; Kimchi was down 98%. He is quick to add that one does not have to look far for a precedent, citing another token that fell 80% in similar fashion. The kind of volatility on display is perilous for the average trader.<\/p>\n
The figures from BitQuery bear this out: some 74 percent of typical Solana buyers of a new meme token will lose money. \u201cYou will find the ones who make money are the token\u2019s creators or those who get in at the very start,\u201d says Lark Davis, \u201cthe rest are left holding the bag.\u201d And there is profit to be made from it; Pump Fund and others are pulling in millions a day and have a stranglehold on close to 70% of Solana\u2019s fees. Even in the wake of something like the Kimchi crash, they are unbothered and continue to amass large profits from the less experienced.<\/p>\n
Davis would advise anyone seeking a sounder investment to focus on the Solana blockchain and its stablecoins, Athena\u2019s USDE for instance, which carry none of the risks of the latest celebrity token. Then there is Hyperliquid, a newcomer on Solana that is seeking a CFTC license to bring some regulation to crypto derivatives. For an investor looking for a product with more transparency and safety, that should be of interest.<\/p>\n
Every call by Lark Davis and how it played out \u2014 in the BuyCrypt bloggers tracker<\/a>.<\/em><\/p>\n Source \u2014 Lark Davis: https:\/\/www.youtube.com\/watch?v=C7aVQDkcA9Q<\/a><\/em><\/p>\n <\/p>\n Explore safer trading alternatives and practice without risk using our crypto trading simulator. risk-free crypto trading<\/a>.<\/p>\n <\/p>\n