When asked, “Why do meme coins often surge and crash?”
I usually answer: Meme coin derivatives markets often see extreme funding rates and large-scale liquidations, which further amplify price volatility. Without fundamentals to use as a reference, prices depend largely on “how much the next buyer is willing to pay.” When sentiment shifts, prices can drop rapidly.
$PEPE 0.0₅39（-3.47%）
Have you ever fallen into a similar trap? Share your experience so others can avoid the same pitfalls.
I usually answer: Meme coin derivatives markets often see extreme funding rates and large-scale liquidations, which further amplify price volatility. Without fundamentals to use as a reference, prices depend largely on “how much the next buyer is willing to pay.” When sentiment shifts, prices can drop rapidly.
$PEPE 0.0₅39（-3.47%）
Have you ever fallen into a similar trap? Share your experience so others can avoid the same pitfalls.