A shocking number of meme coins have failed in 2024: study

New research from Chainplay highlights a 97% failure rate for meme coin projects since 2024.

Data shows that meme coins have an average lifespan of just one year, while typical crypto projects last around three years.

The death rate of Meme Coin projects

According to AlphaQuest, a crypto research tool, an average of 2,020 meme coin projects die every month.

Status of Memecoin 2024: High Risk, High Reward

Memecoins: a rollercoaster of fortunes or a financial minefield? Our latest study of 30,000 projects reveals the shocking realities behind the hype.

Main findings:
⚰️97% of memecoins have died since 2024
⏳ Average life:… pic.twitter.com/rOvHreXq8X

— ChainPlay.GG (@Chainplaygg) August 6, 2024

The research also highlights the varying death rates of the same coins on different blockchain platforms. Base leads with a death rate of 66.91%, followed by Solana at 54.03% and Ethereum at 36.59%.

In addition to their high failure rates, meme coins are often linked to malicious activity, with more than half (55.24%) classified as such.

Despite these risks, these cryptocurrencies remain attractive to investors, especially those looking for quick gains. Research indicates that nearly 60% of investors in this asset class view them as short-term investments.

The study also shows that these coins have become an important part of many crypto portfolios, with two-thirds of crypto investors having invested in them at some point.

Investor and media perspectives

The perception of meme coins varies significantly among investors based on their experience. While 54% of all meme coin investors do not see these assets as essential to their portfolios, nearly 58% of new investors, those active for less than six months, see them as crucial.

In contrast, only a third of investors with more than a year of experience consider them must-have assets, suggesting that greater experience leads to greater caution.

The media perspective reflects a similar caution. The study found that only 13.77% of meme coin news reports are bullish, indicating a predominantly cautious outlook.

Chainplay’s research also emphasizes the importance of thorough research into these assets, especially given the high prevalence of scams.

They noted that audit reports have proven to be a valuable tool in this regard, correctly predicting whether a meme coin will become a scam 81% of the time.

The research highlighted the importance of due diligence for investors navigating the market within this asset class.

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