Kraken Warns That U.S. Crypto Enthusiasts Are Relentlessly Investing in Memecoins Despite the Risks.

Kraken Survey: U.S. Crypto Investors Keep Flocking to Memecoins Despite Risks

A recent survey by crypto exchange Kraken found that memecoins continue to attract U.S. investors, even as concerns over their volatility and risks persist.

According to the report released Wednesday, 85% of surveyed crypto holders said they had invested in memecoins, with 76% stating that “the potential rewards justify the risks.”

Surprisingly, 44% of respondents expressed confidence that memecoins could enhance the credibility of the broader crypto market, while 42% expected them to outperform other digital assets this year.

FOMO (fear of missing out) was cited as a major reason for buying memecoins, alongside recommendations from friends and family and the entertainment value of these community-driven tokens.

However, memecoins have also been at the center of recent scandals. The LIBRA token, which gained attention for its ties to the Argentinian government, surged to a $4.5 billion market cap before collapsing by 90% in an apparent rug pull.

The survey also revealed that 29% of memecoin investors were primarily chasing short-term profits, while 23% saw them as a diversification tool within their crypto portfolios.

Notably, women showed a slightly higher interest in memecoins than men—86% of female crypto holders reported investing in them, compared to 84% of male investors.

Kraken conducted the survey on Jan. 9, 2025, gathering responses from nearly 800 U.S.-based crypto investors.

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