What are the major risks associated with investing in meme coins?

Meme coins carry several significant risks for investors. Market manipulation is a primary concern, where central players artificially inflate trading volumes and prices to create fake transactions that suggest greater buyer interest. Pump-and-dump schemes are also common, where prices are artificially inflated before major sell-offs, leaving late investors at a loss. Additionally, meme coins experience unpredictable price swings and lack real-world applications or long-term viability. Investors face potential legal crackdowns that could impact liquidity, exposure to hackers and criminal operators, and vulnerability to various frauds. For these reasons, experts recommend exercising extreme caution when considering meme coin investments.