The cryptocurrency industry witnesses a resurgence of the Fear of Missing Out (FOMO) trend as an NFT Pet-Rock fetches over $200,000 this month. The “digital junk” market is experiencing a revival after a two-year crypto lull, with even the Pepe meme coin doubling in capitalization within weeks.
Amidst the crypto landscape’s unpredictable dynamics, the FTT token, associated with the now-bankrupt FTX, triples in value, fueled by hopes that the crypto exchange might resurrect. The recent surge in value contrasts sharply with the regulatory crackdown that labeled certain digital coins as illegal, leading to a downturn in questionable crypto projects.
Campbell Garvey, a finance professor at Duke University, notes the return of FOMO as rising prices lure investors back into the fray. However, cautionary voices highlight the risks of breaking fundamental investment rules, emphasizing the need for understanding and diversification.
Social media once again buzzes with posts promoting meme coins, some with minimal utility or intrinsic value. The resurgence of hype is exemplified by a Memecoin, soaring in value this month with a brief white paper acknowledging its lack of function or financial promises.
Static images of rocks tied to Ethereum and Bitcoin blockchains are making a comeback, with Bitcoin Rock #75 recently selling for nearly three bitcoins, approximately $112,900. Despite their incredible prices, NFT rock collections remain illiquid, managed by small groups.
Despite past setbacks in NFT sales within digital game territories, projects continue to explore this avenue. Experts caution that another cycle of hype for alternative coins is inevitable, potentially leading to financial harm for investors. As the FOMO trend resurfaces, the cryptocurrency industry braces for renewed enthusiasm and the challenges it may bring.
