Franklin Templeton goes ‘full rot’ with an investor memo on memecoins
Franklin Templeton, an American multinational investment firm, published an investor note on memecoins, which says that “they have no value or utility”, such tokens can generate quick profits.
A March 14 issue titled “The Value Between MM Coins and Their Native Networks” noted that MemeCoin's price performance is “similar to a meme circulating on the Internet” and that they gained popularity last year for their “distinctiveness.” nature”
The company notes that memecoins require little technical expertise, have low fees compared to other cryptocurrencies, and offer the potential for quick profits, but have a lot of price volatility.
Dogecoin (DOGE) was the first and largest memecoin by market capitalization, DOGE mentions the creation of many more memecoins.
Long touted by Tesla boss Elon Musk, DOGE is the tenth largest cryptocurrency with a market capitalization of $26 billion.
The Shiba-inu dog-themed token has surged 14% in the past few hours to 0.189 Musk after suggesting that Tesla should enable DOGE payments “at some point.”
Franklin Templeton has stated that he believes memecoins “have a strong connection to native networks”, noting the rise of the Solana-based BONK token in late 2023.
BONK, the first dog-related memecoin on Solana, has risen over 5,700% in the past year.
In February, the European fintech company Revolut launched a “learn and earn campaign” for memecoin, with additional attention sending BONK to the top in early March.
The total market capitalization of all memecoins is $65.5 billion, about 2.25% of the entire crypto market, according to CoinGecko.
Related: BONK, PEPE and SHIB are threats to crypto.
Franklin Templeton was among the companies that filed for a Spot Ether (ETH) exchange-traded fund (ETF) in the United States.
Trillion dollar asset management firm Spot Bitcoin (BTC) ETF, Franklin Bitcoin ETF (EZBC) lagged its rivals with $167 million in net capital inflows year-to-date, just 1.4% of total inflows. Nine newly launched funds, according to Farside Investors.
Magazine: Wolf of All Streets Worries About Bitcoin Hitting $1M World: Flame Hall
