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You are here: Home / News / Memecoins Disrupt Crypto Culture: Traders Chase Quick Profits Over Fundamentals
February 16, 2025 by Usman Zafar
- Memecoins have shifted the focus from understanding innovations to short-term gains, leading to disengagement with technical analysis.
- The rise and fall of memecoins like $LIBRA highlight the risks of hype-driven investments.
- Fundamentally strong tokens and organic community projects may regain investor attention over time.
The rise of memecoins has transformed the landscape of crypto trading. Once dominated by deep dives into protocols and tokenomics, the space now thrives on quick profits and fleeting trends. Ignas, a prominent crypto commentator, posted on X that the culture of innovation is fading as memecoins make traders lazier and more short-term-focused.
Memecoins made crypto natives lazier and more short-term focused.
Previously, beating the market meant understanding innovations, predicting narratives, studying new protocols, and, crucially, really understanding tokenomics.
Now, few care to read technical threads on X…
The once-popular practice of sharing technical threads on X (then Twitter) has faded away. According to Ignas, lack of demand has discouraged KOLs from posting in-depth pieces of work. “DO YOU want to know how Berachain PoL works? Or what the Ethereum Pectra upgrade has to offer,” he wrote in disbelief at flagging demand for insight.
Memecoins attract immense mindshare but more often than not make losses for many traders. According to Ignas, fundamentals “don’t matter until they do,” so it’s possible that sentiment has started to turn already.
Solana Memecoins Shine Amid Chaos
Despite the negative criticism, certain memecoins are gaining traction for their solid fundamentals and inherent growth. Gray Punk cited Solana-based tokens $BONK, $WIF, and $COM as community-supported tokens that maintain their value.
#Memecoins with strong fundamentals?
Yes, they exist 👀$BONK and $WIF proved that #Solana memecoins can sustain multi-billion-dollar runs$COM follows a similar organic model – but with a higher % of tokens in real holder hands
Early-stage community coins like this tend to… pic.twitter.com/gVBrprLxnd
As opposed to centralized memecoins, these tokens prioritize donating a majority of their supply to holders so that their ownership stakes increase over time.
Early-stage community tokens such as $COM are gaining popularity as a counter to hype tokens. Gray Punk’s optimism describes a broadening perspective that these tokens have the potential to overtake centralized meme tokens in the future.
The $LIBRA Debacle: A Cautionary Tale
The recent collapse of $LIBRA, a memecoin linked to the Argentinian President’s post, has rekindled arguments on how volatile these ventures are. $LIBRA’s valuation reached $4.5 billion within hours of the tweet before insiders offloaded $87 million only for the token to plummet by 90%.
Missed the $LIBRA madness while you were being a good Valentine? Here's the recap:
1) Argentinian President tweets out a token
2) Token rockets to a $4.5bn valuation in 2 hours
3) Insiders pull out $87mn
4) Token crashes 90%
5) President deletes tweet, denies involvement
6)… pic.twitter.com/3Y4gNQKCRh
The collapse was followed by the deletion of the tweet by the President and their denials of having anything to do with it, further dropping the token’s price by yet another 60%. This debacle is indicative of hype investing risks and insider manipulation. Memecoins have the tendency to spark public imaginations but their unreliability has so far caused substantial losses for ordinary investors.
As traders traverse today’s environment, hype or fundamentals get louder in their argument. Whether or not memecoins remain in style or all focus shifts to innovation and sound tokenomics, all that is for certain is that crypto narrative is in a state of constant adjustment.
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