Meme Coins' Impressive Yields Draw Attention From Hedge Funds

IconCrypto News Terminal24 Apr, 2024

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Meme Coins' Impressive Yields Draw Attention From Hedge Funds

Hedge funds are increasingly showing interest in meme coins due to their impressive yields, according to a report by Bloomberg. The report highlights the 300-fold rally of Wifedogecoin (WIF), which has attracted the attention of hedge funds. California-based venture capital firm Stratos launched a liquid staking fund with WIF tokens, yielding 137% in the first quarter. Prominent venture capitalists Marc Andreessen and Chris Dixon, along with investors like Brevan Howard and Pantera Capital, have invested in meme coins. However, Liquid Capital founder Quinn Thompson cautions that the meme coin craze resembles a frenzy of retail investor speculation, similar to the GameStop saga. Bloomberg also noted that meme coins currently account for the majority of trading volume on decentralized exchanges (DEXs), with a total market capitalization of $54.7 billion. Previously on 24 April 2024, Bloomberg reported an increase in the number of cryptocurrency hedge funds interested in meme coins due to their impressive yields.

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