Experts warn against the rising trend of meme coins flooding the market, saying a strong community does not matter.
As meme and joke coins are continuously gaining popularity in the crypto communities, grabbing the attention of retail and angel investors, some industry experts have taken it upon themselves to warn crypto enthusiasts about the trend, claiming it spells danger.
Benjamin Cowen, the Chief Executive Officer of Into The Cryptoverse (ITC), recently took to Twitter to warn about the rising trend of meme coins such as Dogecoin (DOGE), Shiba Inu (SHIB), and PEPECOIN (PEPE).
According to Cowen, these meme coins are flooding the market to make their founders wealthy. He argued that the “strong community” narrative is nothing more than garbage, contending the predominant idea that a meme coin with a huge followership base may likely prosper and make investors rich.
Furthermore, the ITC founder expressed that most of these memes are created by the same group, who then pump and dump the coin until it is no longer profitable.
Daily reminder that these memecoins that are flooding the market exist to make the founders rich.
The “strong community” narrative is garbage.
Most of these memes are created by the same group, just pumping and dumping until it no longer is profitable.
— Benjamin Cowen (@intocryptoverse) May 9, 2023
Cowen’s statement generated reactions in the crypto community, with many people sharing his sentiment. A crypto enthusiast with the username Conk_Shaman added that if a person fails to take profit and remove their capital, such an investor will be used as exit liquidity, regardless of whether the meme coin has the most robust community ever.
If we look at Twitter, Shiba Inu and Doge both have an extremely strong community with 3.7M followers. According to data from the popular market tracker, CoinMarketCap, the meme coins have a market capitalization exceeding $16 billion, with Dogecoin, Shiba Inu, and PEPE holding the largest share.
Dogecoin and Shiba Inu have proved their worth. Both coins have a lot of utility and are accepted as payment methods around the globe.
PEPE, a meme coin launched just last month with a market cap of over $629 million, has no utility case. However, the token has caught the eyes of major crypto investors. TheCryptoBasic recently reported that three whales purchased three trillion units of the PEPE meme coin while its value was crashing.
Similarly, Ben Armstrong, commonly known as Bitboy Crypto, is busy promoting BEN coin to his 1 million followers.
Similarly, a newly launched meme coin has got the attention of Charles Hoskinson, the founder of the Cardano (ADA) blockchain. As reported by The Crypto Basic, Today, Hoskinson expressed curiosity about the growing buzz surrounding Snek (SNEK), a Cardano-based meme coin. Some Cardano enthusiasts view Hoskinson’s tweet as a ploy to promote the newly-launched meme coin.
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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.