Solana, the well-known smart contract platform, is back in the spotlight thanks to the introduction of Hump (HUMP), a memecoin.
In a short time, this new memecoin managed to rise by more than 2,000%, which is of course enough to take all the headlines. How is it possible that all those memecoins on Solana perform so well? And what exactly is HUMP?
Hump: The newest memecoin on Solana
Hump is the latest memecoin to join the already rich offering on Solana. Like its peers, Hump has no concrete applications outside the crypto world. Yet the coin attracts a lot of attention thanks to its amazing price performance.
Hump’s popularity is partly due to Solana’s growing appeal. More and more crypto projects are finding their way to this lightning-fast and affordable platform. The rise of memecoins such as Hump can therefore be seen as a signal of the increased interest in Solana.
In addition, psychology and simple economic laws play a role in the insane price increases of memecoins. The promise of quick profits attracts many investors, causing demand to increase and the price to skyrocket. This is a self-reinforcing effect, a domino that just keeps falling.
Many people see memecoins as buying a lottery ticket, with a slightly higher chance of winning.
Key points for investors
For investors considering investing in the memecoin world, “be careful” may be the best advice. Know that you are investing in projects that do not actually represent an underlying value, but that you are hoping for a “bigger fool” to take over the currency from you for more money.
In any case, it is not advisable to throw all your hard-earned savings into these types of projects. Above all, see it as a gamble, as if you were going to the casino. It’s nice when things go well for once, but in most cases you’ve probably already missed the boat.
HUMP, for example, already has a market cap of $80 million, which is quite a lot. If the meme doesn’t catch on, it could just end there. The risk is enormous, so be very careful and don’t be fooled by the countless stories about gigantic returns.
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Source: https://newsbit.nl/deze-solana-memecoin-schoot-met-2-000-omhoog/
