Recently, many people have been discussing newly issued meme coins. Today, let's talk about what these assets really are and what risks they carry.

First of all—honestly—these types of coins are usually not widely verified or based on a consensus-driven digital asset. They are generally speculative tools temporarily issued on some DEX platforms (such as exchanges within the Solana ecosystem), with almost no real business support or technical backing behind them.

Why are they so risky? There are mainly three reasons:

**1. Price entirely driven by emotions**

The price fluctuations of these coins have nothing to do with financial fundamentals. What influences them are a KOL's statement on social media, FOMO sentiment within communities, and short-term capital inflows and outflows. Simply put, when more people buy, the price goes up; when more sell, it crashes—it's that straightforward and brutal.

**2. Liquidity black hole + risk of rug pull**

What does extremely low liquidity mean? You might not be able to sell when you want, or you may have to accept a deep discount. Even more frightening is that the issuing team is often anonymous, posing a risk of pulling the rug at any moment. Once the project team decides to dump their holdings, retail investors are basically the ones getting harvested. The price can plummet from a peak to near zero within minutes, with losses that are irrecoverable.

**3. Price trend is unpredictable**

Don’t trust technical analysis or predictions of upward trends. The movement of these assets is purely random. All you can do is gamble on whether the community’s enthusiasm will continue or how long the marketing hype can last. Is this investing? No, it’s gambling.

**Final words**

For these high-risk assets, investors must face reality: participating is essentially gambling, not investing. If you insist on playing, only use small amounts of money that you can afford to lose completely. Never treat it as a financial management method. Based on historical data, most similar projects eventually go to zero. Early investors might make quick money, but most people will get caught in the trap during the process.

Rationality, calmness, and restraint—these are the keys to surviving long-term.