How do coins with no use case value so high in the Market?

[peerwallet]

I have seen several of these tokens, how is this even possible?

[Xal0lex]

If there is a demand for such coins, the utilitarian aspect of such coins goes to the background. The main thing is that with the help of such coins there is an opportunity to earn money. And for traders it does not matter whether the coin has some practicality or not. There are a huge number of coins on the market that have no utility whatsoever. Nevertheless, they feel great due to the fact that they can be used to earn money. This is enough.

[mk4]

Speculation — which fuels the entire cryptocurrency markets lol. People invest in a coin because they think it has a future(hence pump), or sometimes solely because it would pump due to meme-tic reasons.

It's almost like venture pre-seed investing, but instead of savvy investors and visionaries, it's mostly gamblers who are trying to make bets.

[DeathAngel]

Developers & backers with deep pockets can pay for sophisticated advertising schemes. It can go very quickly from mint to some useless coin going viral & really pumping hard. It’s like a snowball rolling down a mountain, getting bigger & bigger as it rolls down. These low use case coins very rarely last long in an uptrend. Developers & early adopters & backers usually rug pull & the hype dies down very quickly. It’s a get in & get out quick type vibe.

[Stalker22]

I have seen several of these tokens, how is this even possible?

Well, how can anything be worth if it dont really have a clear, tangible use case? Like traditional collectibles for example.  The answer is simple, people think it will be worth more later on - betting on it, yeah? Call that speculation.  Just like stocks and stuff coins can go up because investors reckon they will hit the big time someday. 

[Dr.Bitcoin_Strange]

I have seen several of these tokens, how is this even possible?

Demand and supply for such tokens or coins usually plays the magic too. Cryptocurency owners and their management usually have some secret marketing tricks that they can implement that could cause hype on the coin, and the more people start buying lots of that coin, the more the price will gain value. For example, some projects can make a token burn announcement, and once they do so, the price of the coin will pump. They can also announce any new model that they want to bring to their project and the announcement can make the coin value to go up.

[Marvelman]

If folks want 'em, they'll pay for 'em.  Investors pile their money into coins thinking theyll hit the big time down the road.  For traders, a coin's utility don't mean squat. 

I mean usefulness dont necessarily drive prices up.  Speculation and hype do.  If enough people think Coin X is the next hot thing, demand skyrockets regardless of whether it actually does anything helpful at the moment.  Maybe its developers promise world-changing applications or it gained momentum from some viral hype storm. 

[JeffBrad12]

thats just how hypes works, even the shittiest coin out there if it got the support of many people and become hypes overnight it will have valuation of at least hundred millions of dollars it seems ridiculous at first but frankly speaking even in stock, not different with cryptocurrency market the same thing is occurring its all not about the technology presented sometime, its sometime just about the shill of influential people that determine the success of the coin itself.
thats why many people are saying to follow the trend because usually the trend are where the money are, so basically by following the trend we might get that piece of cake getting that share of profit by just following around what people are investing regardless of the fact whether the coin itself have use case or not.

[Rimueng]

I have seen several of these tokens, how is this even possible?

Me to, sometimes like you, but trust me, you're not alone in wondering this. I mean, take Dogecoin for example, started as a joke and boom. If you look in this token, it's like shitcoin or nothing but it's high value and many people buy, before we know it. Right? This means, altcoins can often run on hype and speculation. The reality is, the value of any currency, digital or not, comes from the trust and belief people have in it. But, many tokens have value baked into their protocol through uses like staking, providing liquidity, or being a governance token. These coins have a strategy, a plan, and purpose.

[PIMPdev]

Marketing, that's all I think. 99% of memecoins are useless, but people are buying them for some reason.

[husencoe]

I think it all happens because of the trends. When a developer wants to create hype, of course he will pay the media or advertising to work for him. Or he even pumps the coin by buying the coins as if the coin is shining again. When a trend has been created, of course their mission will run automaticly by itself. Then the people became interested because they seemed to be able to see the hope of making money, and of course people who follow this trend will get benefits. I think this doesn't only happen to crypto world only, but can also happen to the fiat. Here, the rich guys will have the power to move the price with their money.

[khiholangkang]

If there is a demand for such coins, the utilitarian aspect of such coins goes to the background. The main thing is that with the help of such coins there is an opportunity to earn money. And for traders it does not matter whether the coin has some practicality or not. There are a huge number of coins on the market that have no utility whatsoever. Nevertheless, they feel great due to the fact that they can be used to earn money. This is enough.

Some people even rely on hype on projects that have no superior utility, such as on projects that are generally only based on ordinary technology such as memecoin, or other shitcoins but for players they always buy and trade them to the community to benefit from the narrative that is brought up to attract the attention of more people, there are even most who pump deliberately to increase the price, because they buy at the beginning, even though in reality the token or coin has no utility at all in increasing scalability or whatever is needed as the crypto industry can develop more effectively and efficiently.

Essentially for some people if it has the potential to increase their money then why not take the risk.

[EarnOnVictor]

I have seen several of these tokens, how is this even possible?

Bro, my candid advice for you is to take the crypto market as it is, many things there look impossible, as though insane, but in reality, they are so no matter how we take it. If meme coins could attract as much as billions of dollars, what do you expect? These are coins/tokens with no speciality but only for play, yet, they are very important today, so you should not expect less in the crypto space. Also, I want you to know that the pricing of coins/tokens varies, that's why some will attract a small amount of money but will move more than others in value that are even attracting more capital.

There are some that had low liquidity as well and were manipulated by big volume. Such tends to move high and fast. At times, they will keep the status, while some will move back lower, which is why the market is so uncertain on what will happen to them, and they are so unexplainable with a single ideology, they are just too confusing to explain at times. This is why I conclude that we should not limit our investment to the fact that we trust a coin/token so much but to the fact that we are just risking in the market. And if luck shines on us, a token/coin that we underrate could earn us x100 of our investment in a very short time. This is even as the others we believe so much in might just earn us x2 or thereabout. The crypto market is insane.

[oktana]

There are many factors and one very popular and effective one is about the people backing the project. Do you remember how DOGE blew up? Elon just tweeted and something that never really had value was valuable. If people who have big images decide to promote a coin, irrespective of the use of the coin, it will likely be valued. Another factor is hype. People fuel hype and the hype creates anticipation which can likely add great value to a coin or token.

[Sophokles]

I have seen several of these tokens, how is this even possible?

There can be one explanation for this, and that is manipulation. Whales manipulate the market of those tokens by creating a lack of supply by accumulating most of the tokens on the market. So after the whale accumulation the project price already shot up and got speculators eyes. They push the price further because there isn't much supply left in the market so even a few percent of high cash inflow pushes the price higher than expected. If you don't know how they play this game you should stay away from this token otherwise you can lose a lot of money.

[pakhitheboss]

I have seen several of these tokens, how is this even possible?

Most of these coins are meme coins to be precise, they have high value because most of them are community-driven. Resulting in the hype of those coins with the perception of high returns as they are less than $1. The idea that comes into the mind of an investor is to buy these dirt cheap coins in bulk quantity. Wait for the hype to trigger in by holding them for long-term gain, resulting in a high value of these shit coins. If you want you can check the community of meme coins like Shiba and Pepe, they are always shilling their coins to get a pump in the market value, resulting in a small-term gain.

The other factor is whale manipulation which suddenly gives rise to a price hike. New investors want to ride the bandwagon and therefore invest when the price is high resulting in getting stuck into the coin unless they sell it or regain the same price point where they took a position.  

[Saisher]

I have seen several of these tokens, how is this even possible?

Dogecoin is just a copy of Bitcoin but it landed on the top 20 that's because of Elon Musk, who is considered to be a big influencer in the market, so it is more of hype, and on what's trending, it's easy to make money from pump and dump coins if a coin has an influencer behind him and they engaged on creating hype, it's a domino effect, people will invest on coins that are getting the attention of investors even though they employed deceptive marketing.
Investors want quick profit they are easily swayed by hype, something they cannot get from projects that will take years to complete their roadmap and perform better in the market.

[bastian466]

Marketing, that's all I think. 99% of memecoins are useless, but people are buying them for some reason.

What do you think are their reasons for buying or collecting different types of meme coins? What reason do they have to believe in useless coins as you say? This is different from me who looks for meme coins by working or participating in airdrops so as not to lose a lot of money or time if the coins just become trash in my wallet

[tvplus006]

I have seen several of these tokens, how is this even possible?

Dogecoin is just a copy of Bitcoin but it landed on the top 20 that's because of Elon Musk, who is considered to be a big influencer in the market, so it is more of hype, and on what's trending, it's easy to make money from pump and dump coins if a coin has an influencer behind him and they engaged on creating hype, it's a domino effect, people will invest on coins that are getting the attention of investors even though they employed deceptive marketing.
Investors want quick profit they are easily swayed by hype, something they cannot get from projects that will take years to complete their roadmap and perform better in the market.

Dogecoin had a huge community before Elon Musk drew attention to it. And what Elon Musk did, who was shill the coin, increased the price of Dodge, after which the price of the coin returned to its previous values. So famous personalities like Elon Musk can come and go, and the community will always stay with Doge.

[ThemFloo]

I have seen several of these tokens, how is this even possible?

Because people usually buy and sell for a reason.
is no exception to what you are talking about.
maybe there is a positive side.
so that the coin sells well in the market.