The present situation of the crypto market has already been unstable when the market witnessed a major reverse on a Friday night. In a matter of hours, more than $200 billion was withdrawn from the market, causing many to wonder, “Why is crypto crashing?”
Keep reading to know more!
Meme Coins Crash: Are Meme Coins A Risky Business?
The USDC, managed by Circle, is the second-largest stablecoin globally by market cap.
Dogwifhat (WIF), a spin on the “dog token” trend, raised over $600,000 in USDC to advertise on the side of Las Vegas’ Sphere megaproject.
However, these projects could unknowingly invite the scrutiny of the U.S. Securities and Exchange Commission (SEC). The SEC has been more than willing to make an example of under-the-radar projects to make a point.
Even though a not-for-profit Dogecoin Foundation coordinates the development, today’s breed of meme coins is dominated by a few large bagholders who got in early.
Why Is It An Alarming Situation For The Crypto Traders?
- Meme currencies including CORE, DYDX, W, CFX, and others were among the most notable losers. Every day, the liquidations surged to about $1 billion. Known for its fluctuations, the meme coin area faced some of the biggest losses.
- Popular Solana-based coin BONK topped this decline with a sharp 25% loss, bringing its value down to less than $0.000017.
- One of the biggest reasons why is crypto crashing is because the entire meme coin industry lost almost 20% of its total market capitalization in the past day, bringing it down to $54 billion.
- Another reason why is Bitcoin crashing is because recently the total crypto market cap also decreased by 6.5%. Just before the Bitcoin Halving, seriously?
- Another meme coin, WIF, followed suit with a similar decline, driving its value way below $3. This is noteworthy considering that the coin recently charted a new all-time high at almost $5. Shiba Inu was down by 13%, and Dogecoin by 12%.
Shib Coin News: The Rise And Fall Of Meme Coins
Shiba Inu (SHIB), a meme coin and Dogecoin alternative operates on the Ethereum blockchain. It has a growing ecosystem with its decentralized exchange, ShibaSwap, and a lot of creativity reflected in its latest Shib Inu magazine, designed especially for its users.
Dogecoin and Shiba Inu, two of the most popular meme coins, suffered huge losses. The Shib coin news isn’t encouraging either.
The total value of liquidated positions in the last 24 hours was almost $900 million. This crash only highlights the nature of meme coins and serves as a warning to investors dealing with them, especially those involved in leverage trading.
A Quick Tip For Investors-
This Meme Coins Crash news is not only among the major key crypto events of this week but also serves as a reminder that while the world of cryptocurrencies offers opportunities for quick profits, it also comes with significant risks. The Shib coin news serves as a stark reminder of the ever-changing nature of the crypto market.
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Disclaimer: This post is intended solely for informational purposes and should not be taken as legal, tax, investment, financial, or any other form of advice. Although all the information provided is true to the best of our knowledge, it is advisable to research well before making any kind of investments or decisions in general. The team of ReadingCrypto bears no responsibility in the event of any adverse outcomes.
