Popular crypto analyst Benjamin Cowen thinks digital asset traders should be wary of the ongoing memecoin frenzy.
In a new YouTube update, Cowen tells his 784,000 subscribers that he expects the crypto market to undergo “one more scare” this year.
“We get into the pre-halving year, we see rallies, everyone gets excited, but then the memecoins come back, and then the market is like, ‘Oh, well, there’s still a lot of excess in the market, we gotta wreck these people again…’
We had a very similar thing actually occur in 2019. We had a lot of memecoins rally back in 2019 as well, and then look at them. I mean most of them just bled against Bitcoin ever since.”
A similar memecoin rally occurred around the second quarter of 2019, according to the analyst.
Cowen argues that most of the memecoins rallying right now are “outright scams.”
“I think there’s a good case to be made that a lot of the memecoins you see circulating right now, eight months from now people are going to forget them and they’re not going to care about them.”
A lot of the memecoin hype has been driven by the frog-themed crypto asset Pepe (PEPE), which is up more than 510% in the past two weeks.
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