According to AltcoinGordon, buying meme coins without any research can expose traders to high volatility and unpredictable losses, as illustrated by his recent social media post highlighting the importance of due diligence before entering meme coin markets (source: @AltcoinGordon, Twitter, May 16, 2025). For crypto traders, a lack of research significantly increases the risk of investing in projects with low liquidity, poor fundamentals, or potential scams, which can lead to rapid capital losses and missed opportunities in trending sectors such as meme coins. Performing thorough analysis and tracking social sentiment are essential strategies for navigating meme coin trading and protecting investment capital.

According to KookCapitalLLC, the only reason for early and large positions in Housecoin and Fartcoin was due to direct payments and early token allocations from the respective project teams, rather than organic investment decisions. KookCapitalLLC publicly admitted on Twitter that these trades were not based on genuine conviction but were part of promotional deals, raising concerns about insider influence and transparency in meme coin markets (Source: @KookCapitalLLC, Twitter, April 30, 2025). This revelation highlights the importance for traders to scrutinize promotional activity and insider involvement before executing trades in trending tokens.