Memecoin Hype Fades After Failures and Scams, But Some May Endure
Interest in memecoins has significantly dwindled, according to Bobby Ong, the founder of CoinGecko, following a series of failed launches and rug pulls that have left investors disillusioned.
Ong noted that the once-bustling Pump.fun platform, which tracks token launches, saw a sharp decline after the Libra token disaster. Its numbers dropped dramatically, with newly launched and daily graduating tokens plummeting more than 90% since February. The launch of the TRUMP and MELANIA tokens, he added, drained liquidity and overshadowed other memecoin projects.
This marks a stark change from earlier this year, when the release of Trump’s memecoin saw record-high activity on Pump.fun, hitting $3.3 billion in weekly trading volume. However, after January, trading volumes fell by 63%, and memecoins’ market cap dropped from a peak of $124 billion in December to just $54 billion.
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Ong attributes the decline to the crash of LIBRA, a token associated with Argentine President Javier Milei, which saw insiders profit $107 million before it collapsed by 94%. This event shattered the illusion that memecoins were fair launches and exposed the reality of insider profits.
Despite the downturn, Ong believes some memecoins will endure through market cycles. With interest in traditional cryptocurrencies like Bitcoin and Ethereum growing again, Ong speculates that the future of memecoins will follow a “power law,” where only a few will survive. He points to tokens like DOGE, SHIB, and BONK, which have built loyal communities and survived market volatility, as models for future success.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
