Crypto Leaders Clash
As losses mount for memecoin traders, some crypto leaders are advocating for social pressure as a means to deter insider-driven scams.
On February 17, Paradigm researcher Samczsun proposed a social approach to tackling memecoins’ insider problem. He suggested that if the community collectively agrees that insider-driven memecoins are harmful, they could begin by formally ostracizing those involved in fraudulent projects. According to Samczsun, the potential consequences of becoming “persona non grata” in the crypto space might outweigh the short-term financial gains of a scam.
Some community members supported this idea. One user on X argued that unless the crypto community takes serious action to hold bad actors accountable, the industry itself could be at risk. Another pointed to the case of Mango Markets exploiter Avraham “Avi” Eisenberg, who was first condemned by the “court of crypto social public opinion” before facing criminal charges.
Social Shaming Faces Criticism from Crypto Leaders
Not all industry leaders believe social shaming is an effective deterrent.
Solana co-founder Anatoly Yakovenko expressed skepticism, arguing that “social layer pitchforks” are problematic since they react to outcomes rather than adhering to predefined rules. He noted that while it’s possible to ostracize a key opinion leader (KOL), the individuals behind fraudulent projects would likely just shift their tactics and find new representatives.
Crypto trader Jordan Fish (known as “Cobie” on X) also dismissed the effectiveness of social shaming. He argued that those engaged in these schemes are often shameless and immune to public disgrace. According to Fish, the only people ever successfully shamed off social media were relatively reputable individuals who made mistakes or didn’t depend on the platform for income. In contrast, those who should be shamed often turn the attention to their advantage, counter-accusing others and continuing their schemes.
Austin Federa, co-founder of DoubleZero and former strategy lead at the Solana Foundation, acknowledged that the social layer is effective in punishing sandwich attackers and bad projects. However, he noted that it’s nearly impossible to hold scammers and influencers accountable because they often operate outside the community’s existing social framework.
Memecoin Scams Spark Calls for Greater Accountability
The debate over memecoin fraud has intensified in light of high-profile political token scandals.
On February 11, Chainalysis reported that over 800,000 crypto wallets collectively lost $2 billion after buying the Donald Trump (TRUMP) memecoin—which has since dropped 80% from its peak price of $72.60 on January 19.
A similar case unfolded with Argentina President Javier Milei’s LIBRA token. After Milei endorsed the token on X, its market capitalization surged to $4.5 billion, only for insiders to cash out over $100 million, triggering a dramatic collapse in value.
As memecoin scams continue to erode trust in the crypto market, industry leaders remain divided on the best approach—whether social accountability can effectively deter fraud, or if stronger regulatory measures are the only solution.
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