What are the major legal and financial risks associated with meme coin investments?

Meme coins face multiple risks including market manipulation, where 'market makers' artificially inflate trading volumes and prices through fake transactions to lure unsuspecting investors. Additionally, 'pump and dump schemes' artificially inflate prices before major sell-offs, leaving late investors at a loss. In October 2024, US authorities charged 18 people and major crypto firms for various frauds targeting everyday investors. Beyond manipulation, meme coins experience unpredictable price volatility and lack real-world applications or long-term viability. Investors also face potential legal crackdowns that could impact market presence, and exposure to hackers and criminal operators. For these reasons, extreme caution is advised when considering meme coin investments.