Hedge Fund Interest in Memecoin Increases...Succumbing to Yields

Bloomberg reported on April 24 that “a growing number of crypto hedge funds are taking an interest in memecoin.” “The hedge fund industry has been mesmerized by memecoin's stunning returns. Dogwifhat's (WIF) more than 300-fold rally has attracted the attention of hedge funds,” Bloomberg added.

In fact, California-based venture capital firm Stratos launched a securitized fund holding WIF tokens, which returned about 137% in the first quarter. High-profile venture capitalists Marc Andreessen and Chris Dixon are also reportedly participating in the fund, and other notable industry investors such as Brevan Howard and Pantera Capital are also investing in memecoin.

On the other hand, Quinn Thompson, founder of Wrecker Capital, pointed out that “the memecoin craze is nothing but retail investor madness, gambling and speculation like GameStop.” Meanwhile, memecoin has recently been the most traded cryptocurrency on decentralized exchanges (DEXs), and its overall market capitalization has reached $54.7 billion, Bloomberg added.