Memecoin Shenanigans are just getting started

In all seriousness, memecoin fever has been welcomed by some parts of the crypto industry. Seeking outsize returns, few hedge funds have he invested in memecoins this year. Some investment firms, such as Pantera Capital, consider memecoins to be “Trojan horse” perhaps introducing new people to crypto.

The idea, says Robert Le, a crypto analyst at the data firm PitchBook, is that memecoin’s use on a particular crypto network will translate into a future-ready audience with specific needs built on the same hardware. “It brings some value to some real things,” says Le.

But some say that the memecoin phenomenon could damage crypto by promoting the idea that the industry is nothing but a paradise for gamblers and junkies. “Very well, it looks like a dangerous casino. Or false promises are hiding the casino,” he wrote Eddy Lazarin, CTO of the crypto division of the large enterprise company a16z, in April. “This has a huge impact on adoption, laws/regulations, and the behavior of builders. I see the damage every day. You should too.”

The irony is that memecoins have escaped the scrutiny of US financial regulators under the Biden administration, while entrepreneurs trying to establish criminal charges for using crypto search resultssaid Chris Dixon, CEO of a16z crypto, in an interview with WIRED last year. “Very stupid crypto things, like Dogecoin, which are meaningless and stupid – they’re legit,” Dixon said.

There is a future where memecoins can be used by entrepreneurs as a vehicle to raise funds for volunteer crypto projects without having to give money, says Khan. But for now, he represents economic thought in its green form. “We’ve always been in this place where as an industry we look like Macau or Vegas. This doesn’t help us in that way,” he says.

Whether memecoins are destroying the hopes or reputation of the crypto industry, some kind of collapse is possible, industry executives say, given the amount of money flying around and the increased risk for traders.

“Memecoins is a PvP game. In order for someone to win, someone has to lose. The most people who can’t afford to lose money are the ones who lose the most,” says Khan. “There’s bound to be some confusion at some point.”

Because memecoins fail to be easily compared to traditional currencies, Le says, they are probably best managed by gambling giants. “Gambling is really unregulated. It will come down to whoever oversees gambling in every country,” he says. “Through the grapevine, I’m already hearing the administration in the US talking about legislation.” Pump.Fun declined to comment.

Until such time, memecoins will continue to do their thing. On December 5, Hailey Welch of “Hawk Tuah” fame launched a fund, which it lost 95 percent of its value in the first hours of trading, which causes crying. That day, merchants were throwing money PNUTcosts followed by The famous squirrel was injured at the end of last year and the New York State Department of Environmental Conservation, which is currently valued at over $1 billion.

Since starting MAMA, Azalea has continuously raised the money for her 7.7 million followers on X, through a campaign of attractive pictures and meme posts. One of his plans to ensure the longevity of his coin – which is not found in memecoins – is to set up some kind of collateral. The money now accepted as payment a telecom startup in which Azalea has a stake. “I plan to stay here for a long time. And I will be,” he says.

Ultimately, Azalea hopes to put memecoin into other business opportunities — including launching her own investment fund — by convincing potential partners and investors to recognize and ride the zeitgeist.

He said: “I have always done very bad things. “I like to ride the bait, shake things up, say things that are a little catchy. I like to say things and move in ways that I know will be remembered… it’s about virality, in the end.”