How to Distinguish a Promising Meme Coin from a Scam: Scam Meme Coin Rating

Meme coins have tremendously impacted the crypto market to the point of being considered an unprecedented cultural phenomenon. A meme coin is a cryptocurrency originating from an Internet meme or having a humorous characteristic. Dogecoin (DOGE) was the first meme coin, a cryptocurrency based on the famous “doge” Internet meme. Today, many more meme coins are in the market, which has created a multi-billion market with a very vibrant community.

Contrary to popular belief, meme coins are as real as any other cryptocurrency. Most meme coins are built on layer-one networks like Ethereum or Solana. Some meme coins, like Dogecoin, have their own network. Some of the most popular meme coins are themed around the doge meme, including Dogecoin (DOGE), Shiba Inu (SHIB), Floki Inu (FLOKI), etc. Other meme coins, such as Pepe (PEPE), are centered on different memes, like Pepe the Frog in this case.

However, meme coins' humorous and lighthearted nature makes them prone to be involved in pump-and-dump schemes and other scams. They are generally volatile assets and represent risky investments. So, why are people so enthusiastic about them? The reason is that some meme coins have yielded massive returns to investors who have taken the chance to purchase these assets. But with so many meme coins in the market, how can one distinguish good from bad ones? You can find some valuable tips below.

1. More than Just Humor and Hype

While the humorous nature of a meme coin can attract many followers initially, more than humor alone will be needed to sustain it in the long run. In contrast, promising meme coins try to offer utility and usability besides just a lighthearted coin. So, to identify a good meme coin, check whether it provides unique benefits within a larger ecosystem.

2. Transparency

Beware of opaque meme coins that disclose little or no information to their communities. Ideally, the meme coin team must be known and share regular updates about the project's development.

3. Security

Meme coins are among the most targeted cryptocurrencies by hackers and scammers. Hence, security is paramount for the credibility of a meme coin. A good meme coin must undergo rigorous security checks and audits. You should not trust a meme coin that cannot demonstrate it has robust security systems against malicious attacks.

4. An Engaged Community

Another indicator of a promising meme coin is a strong, engaged, and vibrant community. Remember that some meme coins are community-driven. Hence, with a strong community, a meme coin will grow and most likely be around for a while.

Scam Meme Coin Rating

Meme coins have experienced a recent revival, fueled by the desire for quick profits owing to their volatile nature. The astounding growth of PEPE also contributed to this surge. This meme coin increased its price by nearly 55,000% in only three weeks after its April 18, 2023 launch.

However, this revived interest in meme coins has been exploited by malicious actors, who have scammed many investors with rug pulls and other deceiving schemes. PeckShield, a prominent blockchain security company, identified ten scam meme coins in a May 11, 2023 report. Since the meme coin mania did not wane, PeckShield issued another report dated May 23, 2023, identifying 24 more scam meme coins. The list of the recent scam meme coins is as follows:

$SHITMEME, $BENS, $WorldCoin, $MONKEYS, $ERDR, $Magneto, $STARK, $ZAT, $LADYBOY, $USACOIN, $WLD, $POGO, $Miniclip, $PORN, $FROGS, $RNDT, $PSYOP, $POPCAP, $FOG, $TEMU, $TINDER, $TAGGED, $BEREAL, and $SEI.

When investing in meme coins, you must remain vigilant and be wary of those lacking transparency and a credible development plan.

Conclusion

In recent months, there has been a surge of interest in meme coins. Coupled with this surge, scams involving meme coins have multiplied. Investors must be vigilant when navigating the crypto market. Before investing in a meme coin, scrutinize the project and the team behind it. Be cautious when investing in meme coins, and do not invest based on the popularity of a meme coin alone. If you want to invest in the most promising meme coins, LetsExchange.io is the best option. Our exchange lists safe and promising meme coins, reducing the risks for investors.

Disclaimer

Please keep in mind that the above information is based exclusively on our observations and is provided for informational purposes only. It doesn’t constitute any kind of financial advice nor represents an official forecast. Cryptocurrency is a highly volatile asset, and you are investing in it at your own risk.