The rapid rise and subsequent crash of the meme coin market has even shocked the most ardent supporters, including Murad.
This downward trend is not limited to meme coins. The broader market, including Bitcoin (BTC), is also experiencing a downturn.
Murad's Portfolio Hit Hard Amid Meme Coin Crash
Murad, who calls himself the "Jesus of Meme Coins," witnessed his portfolio plummet by over 82% in just 2 weeks. His holdings, which once reached $55 million, have dwindled to less than $10 million, according to Arkham Intelligence data.
"Imagine holding a scam coin and watching the wealth of a generation go to $0." – Crypto analyst The Martini Guy mentioned.
This represents a staggering $45 million loss, showcasing the risks of long-term meme coin holding.
This captures the sentiment of many traders swept up in the meme coin frenzy. As the market warms up to the expected bear market, meme coins are recording significant losses. The top 4 meme coins, Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (PEPE), and the official Trump (TRUMP) coin, have declined by around 7% at the time of writing.
Meanwhile, CoinGecko data shows that Murad's meme coin picks have plummeted nearly 84% from their January peak of $4.8 billion.
Despite the harsh downtrend, Murad has expressed confidence in the market's recovery, reassuring his followers on X (Twitter).
"The bounce back will be glorious." – Murad mentioned.
However, many point out that the market capitalization of the meme coin sector is rapidly shrinking, suggesting that a swift price recovery is unlikely.
Recent research indicates that over 76% of tokens promoted by influencers fail to perform. Many tokens experience a brief period of high interest-driven gains, only to be forgotten, leaving investors with significant losses. These findings reinforce the risks of speculative betting by following social media personalities.
Similarly, BeInCrypto has recently reported that 97% of all meme coins fail. Only 15 out of 1.7 million have achieved sustained success. The reasons are multifaceted, ranging from a lack of utility to poor project management.
Amid Murad's losses, the blockchain intelligence platform Arkham is applying additional pressure on crypto influencers and meme coin promoters. The platform has recently launched new tracking features to monitor the on-chain activities of crypto influencers.
"Influencers with over 100,000 followers on Twitter/X are now tagged as 'Key Opinion Leaders' on Arkham." – Read the announcement.
This development could pose issues for famous personalities who profit by hyping low-quality tokens. Arkham's new tools allow investors to closely scrutinize wallet movements and track if influencers are holding or dumping the assets they promote, potentially exposing the deceptive practices of some influencers.
For now, Murad's dramatic losses serve as a cautionary tale for traders relying on meme coin speculation. Consistent with recent reports, this outcome suggests that the market is shifting towards more sustainable projects. Specifically, crypto investors are moving their focus from meme coins to altcoins with real-world value.
