"U.S. Crypto Investors Embrace Memecoins Despite Risks: Kraken Survey"

U.S. crypto investors continue to pour money into memecoins, despite the significant risks associated with these digital assets, according to a recent report by Kraken. The exchange surveyed U.S. crypto holders and found that 85% had invested in memecoins, with 76% believing that the potential rewards justify the risks.

Interestingly, 44% of crypto holders surveyed believed that memecoins could improve the credibility of the crypto market, and 42% expected them to outperform other cryptocurrencies this year. Fear of missing out (FOMO) was cited as one of the top reasons for investing in these highly volatile cryptocurrencies, along with recommendations from friends and family, and the fun nature of the tokens.

Memecoins have recently gained attention, but not always for the right reasons. The apparent LIBRA token rugpull in Argentina is a case in point, where the crypto surged to a market cap of around $4.5 billion before crashing by 90%. Despite this, 29% of memecoin holders said short-term gain was their main reason for buying these cryptocurrencies, with 23% citing diversification as another reason to invest.

Kraken's survey also revealed that women were more likely to invest in memecoins than men, with 86% of female crypto holders reporting that they had invested in memecoins compared to 84% of men. The survey was conducted on Jan. 9, 2025, with nearly 800 crypto holders in the U.S. participating.