Experts Urge Caution as WOJAK Soars 1040% in Just 7 Days

The memecoin WOJAK has surged over 1000% in just seven days, attracting the attention of speculators. However, experts warn against investing in coins without any utility. It is not uncommon for memecoins to enjoy a spurt of popularity and for the market then to lose interest.

WOJAK, the Ethereum-based memecoin based on the drawing of a bald man with a variety of expressions, has had a great week on the markets. In the past seven days, the cryptoasset has jumped 1041%. Despite a tumultuous 24 hours, it remains up almost 6% at present.

WOJAK Listings

WOJAK was listed on a variety of exchanges, including BitGet, just this week. Huobi began listing the coin on April 19. It is also available on BTCEX, BingX, LBank, and SuperEx.

The coin’s meme originated on the /r9k/ board of 4chan around 2010. Although it did not become a widespread feature of the internet until the middle of the decade. Memers use WOJAK to make fun of a variety of situations due to its highly adaptable and relatable nature, often adding text, facial expressions, and accessories to put a unique spin on the meme.

Investors Should Be Wary of Memecoins

This week’s trend has not quelled skepticism about WOJAK. The coin may have performed well. However, Wesley XIA, founder of Rootz Labs and ex-Head of Innovation at Huobi Global, is wary.

In a discussion with BeInCrypto, he said buyers should be cautious about buying into the hype. “The reason we call meme coins meme coins is that they lack utility and are full of hype. Unlike ETH or other altcoins, where people can verify their activities on chains, meme coins do not have fundamental values but provide a pure sense of gambling.”

Erik Saberski, vice president of Data Science at The Tie, told BeInCrypto: “It is typical to see an initial surge in activity in meme coins when they first appear.”

He went on:

“However, this activity typically dies down within a day for most new ERC-20 tokens. WOJAK, interestingly is showing a spike two weeks after its initial rise. There are currently about 4,000 active addresses making about 12,000 WOJAK transactions per day. This is not quite the same as the initial values in mid-April, but still a respectable amount.”

The recent pump in memecoins has provoked speculation that the so-called “memecoin season” is back. Although, this time, the market activity has been dominated by newcomers. PEPE launched in mid-April and has attracted significant attention from investors. At the time of writing, PEPE is up 157% in one day. 

Passions for such products are often highly fickle. Older memecoins like Dogecoin (DOGE) and Shiba Inu (SHIB) have declined markedly over the last several months.