Move over, Dogecoin (DOGE). You've been dethroned as my least favorite coin in crypto.
The new WOAT (worst of all time) is called Pepecoin (PEPE), the latest Reddit-inspired dumpster fire to captivate the minds of degenerate gamblers all across the crypto-sphere.
What's my No. 1 rule of digital asset investing? Don't invest in anything food, animal, or meme-related-and that includes Pepe the Frog.
A direct quote from PEPE's founders: "Pepe is a meme coin with no intrinsic value or expectation of financial return. There is no formal team or roadmap. The coin is completely useless and for entertainment purposes only."
Just 22 days after this token launch in April, PEPE had over 100,000 users and a market cap of almost $2 billion. A $2 billion market cap, built on the backs of idiots.
I'm not surprised, though...I mean, DOGE has a market cap of $9 billion. Dummies do what dummies will do, and we can learn from their mistakes.
The lesson in Pepe: when it comes to cryptocurrency, anything can reach a $1 billion market cap. You need to ditch the stock investor mentality because a large market cap does not mean a proven business model in crypto.
In fact, when I look at the top ten cryptos by market cap, there's only one or two that I'd actually own myself.
Most of the cryptocurrencies with real use, utility, and potential for real-world adoption (so not PEPE or DOGE) have market caps far less than $1 billion because most people just aren't paying attention.
But I'm not like most people.
Instead of following the hype train, I focus on quality digital assets that provide real-world solutions whose intrinsic value can't be swayed by short-term volatility.
That's how I've built my wealth from cryptocurrency-not gambling my money away on meme coins like PEPE.
To prove it to you, I'll show you a list of digital assets that have smaller market caps than PEPE, but 10X the profit potential.
I'll also run through the top 10 largest cryptos by market cap to demonstrate how all that glitters isn't gold.
Watch this morning's episode of American Institute for Crypto Investors LIVE to hear my list of quality digital assets to own with market caps smaller than $1 billion.
Skip to 19:45 to hear my Market Review.
Stay liquid,
Chief Crypto Strategist, American Institute for Crypto Investors
The post A Lesson in Memecoins: Why Crypto Market Caps Don't Matter appeared first on American Institute for Crypto Investors.