According to Odaily Planet Daily, Messari data engineer Mike Kremer said that Meme coin is the "most extractive crypto phenomenon" since the IC0 boom in 2017. He believes that although speculative bubbles and assets have always been part of the crypto ecosystem, retail investors' pursuit of the latest crypto hotspots always "leaves some residual value."
âDuring the DeFi season, projects like Uniswap Labs launched protocols that provided real utility to the crypto economy,â Kremer said. âWhen the speculative frenzy subsides, these tokens will still have underlying value because they are tied to functional, valuable services.â
However, he noted that meme coins have a âmore disruptive dynamic,â where âinsiders or cartels create tokens like supercumrocket69, hype them up, and get retail investors scrambling to buy these ârevolutionaryâ new assets.â
He added that once the price rises, insiders will sell their holdings, leaving the tokens with no real value or utility. âThe whole process is a zero-sum game where value is not only redistributed but destroyed.â