Memecoin Hype Dies? Investors Ditch New Tokens After LIBRA Debacle!
According to Bobby Ong, the founder of CoinGecko, investor interest in memecoins seems to have waned following a string of poor launches and rug pulls. According to research published on March 6, metrics for the token launchpad Pump.fun fell precipitously after the Libra (LIBRA) rug. Since their high in February, the platform’s newly produced and daily graduating tokens have dropped by more than 90%.
The launch of TRUMP and MELANIA marked the top for memecoins as it sucked liquidity and attention out of all the other cryptocurrencies.
Ong
LIBRA Rug Pull: The Final Nail in the Memecoin Hype Cycle?
This stands in sharp contrast to the activity of meme coins following the January 18 debut of US President Donald Trump’s memecoin, when Pump.fun usage reached a record-breaking $3.3 billion in weekly trade volume. Since then, though, Pump.fun’s volume has dropped 63% from January to February. The overall market valuation of meme coins peaked on December 5 at $124 billion but has since fallen to $54 billion, according to CoinMarketCap data.
If the launch of both these coins wasn’t enough to end the memecoin mania, LIBRA was the final nail in the coffin, shattering the illusion that memecoins were fair launches to reveal cabals and insiders profiting off almost everyone else,
Ong
Only the Strongest Memecoins Will Survive: Is Your Favorite at Risk?
According to Ong, meme coins will always be seasonal, but some will endure erratic market cycles. As interest in meme coins declined and focus returned to Bitcoin, Ether, and other layer-1 altcoins, on-chain analytics company Santiment reported in February that cryptocurrency may be entering a more robust market cycle. According to Ong, the market may be on the verge of a severe power law scenario in which 99.99% of investments fail while a select few succeed and last.
The likes of DOGE, SHIB, and BONK have weathered market cycles and offer lessons for memecoin creators looking to build a longer-term asset. The most successful memes are those that have managed to build cult-like communities who are extremely passionate about a cause, who won’t sell and can create content or stories organically.
Ong
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