Kraken Report: U.S. Crypto Investors Continue to Chase Memecoins Despite Risks

A recent survey by crypto exchange Kraken found that memecoins remain a favorite among U.S. digital asset investors, even as their high risks continue to raise concerns.

According to the report published Wednesday, 85% of respondents admitted to investing in memecoins, with 76% stating that “the potential rewards justify the risks.”

In a surprising finding, 44% of investors said they believe memecoins could boost the credibility of the crypto market, while 42% expected these tokens to outperform other cryptocurrencies this year.

FOMO (fear of missing out) was cited as a key reason for buying memecoins, along with recommendations from friends and family and the fun, community-driven nature of these assets.

Despite their popularity, memecoins have been at the center of recent controversies. The LIBRA token, which was tied to the Argentinian government, skyrocketed to a $4.5 billion market cap before collapsing by 90% in what appeared to be a rug pull.

Kraken’s survey also found that 29% of memecoin holders were focused on short-term profits, while 23% considered them a way to diversify their crypto portfolios.

Notably, the report revealed a slight gender gap in memecoin ownership—86% of female crypto holders said they had invested in these tokens, compared to 84% of male investors.

The survey was conducted on Jan. 9, 2025, with nearly 800 U.S.-based crypto investors participating.