Despite all the naysayers, parts of the crypto industry have embraced memecoin fever. In search of massive returns, a small number of hedge funds are Invested in Memecoins this yearOther investment firms such as Pantera Capital view Memcoin as “trojan horseThere is a possibility of introducing new people to crypto.
Robert Ley, a crypto analyst at market data company PitchBook, says the idea is that memecoin activity on a particular crypto network will translate into a ready audience for future projects with practical utility built on the same underlying infrastructure. “It brings some kind of tangible value to other real projects,” Le says.
But others say the Memecoin incident could harm crypto by perpetuating the view that the industry is nothing but a haven for gamblers and bribers. “At best, it looks like a risky casino. Or a series of false promises concealing the casino,” wrote Eddy Lazarin, CTO at the crypto division of venture capital firm a16z in April. “This deeply impacts adoption, regulation/legislation and builder behavior. I see the damage every day. you should too.”
Ironically, memecoins under the Biden administration have largely escaped the attention of US financial regulators, while entrepreneurs attempting to establish meaningful crypto use cases have targeted for investigationChris Dixon, head of a16z crypto, said in an interview with WIRED last year. “Stupid crypto things like Dogecoin, which is completely meaningless and silly — it's completely legal,” Dixon said.
Khan says there is a possible future in which Memecoin could be used by entrepreneurs as a means to raise capital for crypto projects in earnest without giving up equity. But for now, they represent financial speculation in its rawest form. “We have constantly been in this place where as an industry we are seen as a decentralized version of Macau or Vegas. It doesn't help us that way,'' he says.
Whether or not Memecoin is harmful to the crypto industry's prospects or reputation, industry watchers say some form of action is likely, given the amount of money flying around and the level of risk for traders.
“MemeCoins is absolutely a PvP game. For someone to win, someone has to lose. “Many people who can afford to lose the least money are the ones who can afford to lose the most,” Khan says. “At some point, action has to be taken.”
Because memecoins defy easy comparisons with traditional investment assets, they are probably best regulated by gambling authorities, Le says. “It's basically unregulated gambling. It's probably going to be within the scope of whoever regulates gambling in each country,” he says. “Through the grapevine, I'm already hearing some state regulators in the US talking about doing some type of regulation.” Pump.Fun declined to comment.
However, until such time, Memecoins will continue to function. On December 5, Haley Welch of “Hawk Tuh” fame launched a coin, which lost 95 percent of its value There was chaos in the first hours of trading. On the same day, traders were throwing money PNUTa coin modeled after The celebrity squirrel was euthanized late last year By the New York State Department of Environmental Conservation, it is currently valued at more than $1 billion.
Since launching Mother, Azalea has continuously promoted the coin among her 7.7 million followers on X. provocative pictures And meme postPart of his plan to ensure that his coin has longevity – a rarity in memes – is to establish some kind of utility for it. the coin is now accepted as payment By a telecom startup in which Azalea has a stake. “I plan to stay here for a long time. And I will,” she says.
Ultimately, Azalea hopes she can pivot Memecoin into other business opportunities by proving to potential partners and investors — including setting up her own venture fund — that she can identify with the zeitgeist and ride it. Could.
“I've always been a big troublemaker,” she says. “I like to tease, troll, say little provocative things. I like to say things and move in ways that I know can be memorable… it's ultimately about masculinity.'