Novel Idea Morphed into Mass Speculation

The once-niche part of crypto dedicated to community-driven “meme coins” has gone mainstream, bringing public annoyance with its feverish speculation.

Meme coins started as fun digital assets for online groups to rally around back in 2014. Their low prices also drew retail crypto traders.

“It was supposed to be about communities coming together for some harmless fun,” said industry analyst Nic Puckrin.

But in 2023, the market blew up in scale and risk-taking. New liquidity from bitcoin ETFs stirred appetite. Then Pump.Fun made meme coin creation easy. Millions popped up in its first year.

“We’ve seen a flood of regular investors who see meme coins almost like a new form of gambling,” said veteran trader Vic Laranja.

The Trump coin in 2024 opened the floodgates. Projects multiplied, overshadowing serious crypto. An estimated $6 billion has exited for meme speculation.

“Now it’s not about community at all, just quick cash,” Puckrin said. “It’s an industry squeezing out as much as fast as it can.”

Scams remain common although Pump.Fun has safeguards. Still, its design fuels mania. A lawsuit alleges it runs crypto Ponzi schemes.

The frenzy is tiring insiders and outsiders. “Sentiment is lower than after FTX,” said Puckrin. “Every day a new meme coin launches.”

With bitcoin falling, clearer rules may be the only path forward to tap crypto’s potential.

“I see a wonderful future ahead,” said Laranja, “but we need guardrails first.”