Author: Liam 'Akiba' Wright, Cryptoslate; Compiled by: Deng Tong, Golden Finance
People have a misconception that meme coins are helping people escape poverty, and I think this is really important for this Damage was done to the field. More importantly, I think blockchains like Solana and Avalanche are getting more attention due to the memecoin craze, but they are incredibly overheated. Essentially, meme coin counts are vanity metrics, similar to likes and followers on social media platforms, without any substance content.
Anyone who works in web2 will know that the real KPIs for social media engagement are engagement, user-generated content, link clicks, and sales conversions. The main purpose of likes and followers is nothing more than self-interest. In Web3, on-chain metrics that networks should be concerned about are increasing with the flow of “fake” memecoins, once spam coins As the novelty of the casino wears off, these traffics will decline.
Look at the OG memecoin network BNB Chain, which saw a significant increase in usage in 2021 due to memecoin trading on PancakeSwap. In 2021, its daily token trading volume reached about 17 million, but has since reached about 5 million. Still, 5 million token transfers per day sounds like a healthy metric, right?
However, according to BSC Scan’s data, when we looked at the top coins moved on-chain, we noticed that the majority were either meme coins or fake scam coins.
The picture above is large Most tokens without logos are scam tokens designed to trick users into making transactions in order to steal funds. For example, the USDT token that had 1.2 million unique transfers in the past seven days is not an actual token issued by Tether.
Solana’s pre-sale The meme coin saved its failed phone launch, and Avalanche boosted its "community token" economy by purchasing tokens for its treasury arm, which may well end up going the way they did with BNB Chain.
I am not against the concept of memecoins, but I do believe they should be treated like gambling activities . Additionally, Solana and Avalanche are now likely to join BNB Chain as a gambling network filled with scam tokens and memes with no material value.
Remember, Memecoin trading is essentially Russian roulette and the goal is not whales to exit liquidity .
I was an early adopter of Dogecoin back in 2014, when I mined Dogecoin using a graphics card from a video production company. At the time, the term "meme coin" wasn't even a thing, as Doge was the only one that existed. I became a big fan of the concept as a way to earn "magical internet currency" that was consistent with the internet culture of the time. Dog memes are all the rage, so Dogecoin is a fun way to learn about cryptocurrencies and has the potential to become part of the digital medium of exchange in a world still learning how to “internet”.
In the interest of full transparency, I sold all of my Doge for Bitcoin at the end of 2015 and currently hold a small amount for nostalgia's sake.
However, the current memecoin market has nothing to do with providing an interesting digital currency that can be used for free online transactions. There is no use for any meme coin other than hoping that "the numbers go up". Recently, Bitcoin content creator Layah Heilpern said,
“ Memes Coins and shitcoins have really changed people's lives. There is no other industry that can take you from broke to millionaire in a matter of weeks or even days."
These are all are dangerous narratives because they make people think they can change their lives with meme coins. The reality is that most people either buy too late or hold on for too long. They may be paper millionaires temporarily, but they rarely realize profits in the form of Bitcoin or fiat currency. Either their belief in further profits prevents them from selling before the market inevitably collapses, or there is a lack of liquidity Sex hinders their ability to sell.
Cryptoquant founder Ki Young Ju commented here today, seemingly sharing some of my views,
“Meme coins are hurting the crypto industry .
It’s frustrating to see billions of dollars worth of meme coins overshadowing the hard-working teams building legitimate products to move this industry forward.
< span style="color: rgb(0, 112, 192);">As the 2018 ICO explosion showed, easy money cannot drive progress across the industry. p>
Book of Meme (BOME) has reportedly reached a market capitalization of $1 billion, leading to an influx of new traders. However, DEX data shows that when this milestone was first reached, liquidity was around $64 million. The CEX listing has since helped push trading volumes to over $2 billion in the past 24 hours.
Slerf, another Solana pre-sale token, reported that the founder "accidentally" burned all pre-sale tokens and LP before the CEX listing. The current trading volume today alone has reached 700 billion US dollars. , with a market capitalization of US$200 million.
Dogwifhat (WIF), the most talked about meme coin of the past month, clearly stated, “WIF is a progressive symbol of future transactions and a beacon for those who think ahead. It is clear that the future belongs to those who embrace WIF Wait for those who innovate, push boundaries, and usher in a new era of finance and technology.”
However, don’t be fooled; unlike Dogecoin a decade ago, These “symbols” of progress are designed for one thing only, and that is to make someone rich by selling crapcoin casino tickets to retail investors.
Those blockchains that are changing their focus to promote the community aspect of digital assets to promote innovation and participation can also say what they mean, i.e."Web3 has become so noisy that the only way we can get noticed is by becoming a casino, but we don't want to say that, so we'll pretend it's about' community'."
In the words of many millennial mothers, "I'm not angry, I'm just disappointed." I hold Solana, BNB in my portfolio Chain and Avalanche; this is not a short sale report. I just want to raise awareness about meme coins and debunk the "community" bullshit. In my opinion, the only meme community is Dogecoin, but even the original developers have abandoned that.
So let’s be honest and admit that memecoins are gambling. Then, add appropriate warnings instead of pretending they represent innovation.
Bernice
