Cryptocurrency Expert Jamie Bungaree Warns About Dangers of Meme Coins

Jamie Bungaree, a leading expert in online gambling and cryptocurrency at CasinoAus, warns about the dangers of meme coins, how they resemble high-risk gambling, and possible regulation routes that should be taken to protect investors.

Traditional cryptocurrencies like Bitcoin and Ethereum were designed with clear use cases—whether it’s serving as digital gold or supporting smart contracts. Meme coins are driven by social media trends and influencer endorsements, making them highly speculative and volatile.

Just recently, Trump Coin and Melania Coin, launched just before Donald Trump took office, soared in value before crashing. This was followed by another meme coin launch, Harry Bolz, where Elon Musk single-handedly swayed the market.

“We’ve seen the power of branding in the crypto world before, and their supporters are willing to invest in trusted public figures. But a familiar name doesn’t mean the coin will hold its value. These coins first skyrocketed in price but crashed just as fast, leaving many investors with heavy losses,” Jamie Bungaree said.

Market data from recent months illustrates this volatility:

• Trump Coin generated nearly $100 million in trading fees, but extreme volatility led to major losses for small investors.

• Harry Bolz surged 30,000% in just 24 hours after Elon Musk’s name change to ‘Harry Bōlz’ on X, illustrating meme coin volatility.

• Meme coin trading volumes rival major altcoins, with price swings over 100% in days.

Unlike established cryptocurrencies, meme coins lack stability, making them a high-risk investment.

Meme coin speculation mirrors gambling, with investors chasing hype and quick profits rather than fundamentals. Behavioural economics links impulsive decision-making, overconfidence and FOMO to both speculative trading and gambling psychology.

“Many investors trade based on emotion rather than analysis, chasing trends and overestimating their ability. This mirrors gambling psychology—buying on hype, rather than analysing the fundamentals,” Jamie Bungaree said.

Many traders acknowledge making emotional investment decisions, underscoring the need for responsible investing, much like responsible gambling initiatives.

Jamie Bungaree emphasises that without regulation, meme coins will continue to resemble high-stakes gambling rather than legitimate investments.

“Right now, meme coins exist in a legal grey area, allowing bad actors to exploit market hype. Without regulation and consumer protection, many of these coins will continue to rise and fall, leaving behind a trail of winners and, unfortunately, many losers,” Jamie said.