For all its goofiness, memecoin fever has been embraced by several corners of the crypto industry. In search of outsize returns, several small hedge funds have invested in memecoins this year. Other investment companies, like Pantera Capital, consider memecoin as a “Trojan horse” that can introduce new people to crypto. The idea, said Robert Le, a crypto analyst at the market data company PitchBook, is the activity of memecoin in certain crypto networks. will translate to a readymade audience for future projects with practical tools built on the same underlying infrastructure. “It does not bring some kind of tangential value to other real projects,” says Le. But others say the memecoin phenomenon is likely to destroy crypto by perpetuating the view that the industry is nothing but a paradise for gamblers and grifters. “At best, it looks like a risky casino. Or a series of false promises covering the casino,” wrote Eddy Lazarin, CTO in the crypto division of venture capital firm a16z, in April. “This greatly affects adoption, regulations/laws, and the behavior of builders. I see the damage every day. You should too. interview with WIRED last year. “The most stupid crypto thing, like Dogecoin, which is useless and ridiculous-which is legal, ” said Dixon. equity, said Khan. But now, they represent financial speculation in its rawest form. “We have been constantly in this place as an industry that looks like a decentralized version of Macau or Vegas. This is nothing to help us in this way,” he said. Whether memecoins damage the prospects or the reputation of the crypto industry, there are several possibilities, industry observers say, like the amount of money flying and the level of risk for traders. “Memecoins is really a PvP game. For someone to win, someone must lose. Many people who can lose money the most will be the most losers,” said Khan. “There must be a crackdown at some point.” Because memecoins defy easy comparison with traditional investment assets, said Le, they are perhaps the most regulated by gambling authorities. “It’s basically unregulated gambling. It will probably come down to the purview of who regulates gambling in each country,” he said. “Through the grapevine, I’ve heard some state regulators in the US talking about doing some regulation.” Pump.Fun declined to comment. Until then, memecoins will continue to do just that. On December 5, Hailey Welch of “Lucky Hawk” fame launched the coin, which lost 95 percent of its value in the first hour of trading, sparking protests. On the same day, traders dumped money on PNUT, a coin modeled after a celebrity squirrel euthanized late last year by the New York State Department of Environmental Conservation, now worth more than $1 billion. for his 7.7 million followers on X, through a flurry of provocative pictures and meme posts. Part of his plan to ensure that the coin has longevity – a rarity in memecoins – is to create some utility. Coins are now accepted as payments by telecom startups in which Azalea has a stake. “I want to stay here for a long time. And I will be,” he said. Finally, Azalea hopes to parlay memecoin to other business opportunities-including setting up his own venture fund-by proving to potential partners and investors that he can identify and ride the zeitgeist. “I have always been a shitposter great,” he said. “I like to bait, troll, say something a little provocative. I like to talk and act in ways that I know can become memes… It’s about virality, after all.
