In his latest current affairs column, Mike Kremer, a data engineer at the analytics company Messari, titled "Memecoins Killed Retail" and criticized the thousands of meme coins that are plundering crypto. The value of money and faith in the market.

Messari: Meme coins are the worst “crypto value exploitation phenomenon” since the ICO boom

Mike Kremer first made serious accusations, calling meme coins "the most exploitative crypto phenomenon" since the 2017 ICO boom.

He pointed out that Uniswap Labs launched a pioneering protocol that provides real utility to the crypto economy during DeFi Summer, and their tokens will still have real value after the speculative mania subsides because they are linked to good services that are running:

However, the creation and promotion of meme coins are mainly controlled by insiders, which ultimately leaves retail investors to bear the losses.

In this regard, he believes that meme coins are not like other crypto bubbles in the past, because they do not leave any residual value, but are pure value destruction:

The entire process is a zero-sum game, yet crypto value is not redistributed but destroyed.

A few weeks ago, venture capital partner Adam Cochran made similar criticisms, pointing out that more than 60% of traders on the meme coin issuance platform Pump.fun are losing money, and the millions of coins the platform has created so far Of the new tokens, less than 1.5% have a market value exceeding $63,000:

Such feverish popularity occurs every time an industry sniffs out a new narrative in a stagnant cycle, but like the dot-com boom and subsequent bubble burst, these don't last.

(Venture capital partner Adam Cochran: "The meme craze is about to end." Data reveals that Pump.fun's success rate in issuing coins is only 1.4%)

Different views on meme coins

However, the crypto community has been debating the pros and cons of meme coins for a long time. Chain News has also compiled the opinions of other influencers below.

Pump.fun

Alon, the anonymous developer of Pump.fun, believes that reducing the cost of issuing meme coins will help market development, and the advancement of the technology will attract more people to enter the encryption market in an easy-to-understand way:

Before Pump.fun, the memecoin space was rife with developer scams, honeypot traps, and scams like RugPull, and now they’re ready for mass adoption.

a16z

In addition, Chris Dixon, general partner of the well-known venture capital a16z, attributed the current speculation chaos to the evil regulatory policies of various countries that resist or eliminate cryptocurrencies:

The current unclear regulatory and law enforcement methods have made speculative tokens popular, while blockchain tokens that are actually productive have to worry about regulatory crackdowns at all times.

He said helplessly, "Actually, launching a meme coin today with no real use case is safer and less laborious than designing a project token with a real purpose."

Chain News

Lianxin News has previously titled "Evolution of Idiots" and believes that in the crypto market where people do more and make more mistakes, people who have abandoned their sense of mission and values ​​may be better able to adapt to this field:

The cryptocurrency investment market may be entering an "anti-intellectual" era. "Practical technology is too far away", "there are too many shady hands to speculate on topics", and "organized new startups will be regulated", so it is better to just let it go. Let’s be flat.

It may also be that similar viewpoints make the crypto market completely different from other capital markets and have a unique operating model.

(Idiot Evolution Theory｜Meme coins have become the mainstream of the market, replacing NFT and becoming a popular entry point for the public)

This article Messari engineer criticizes the meme currency phenomenon: it is "severely squeezing" the value of the crypto market. First appeared on Chain News ABMedia.