Altcoins Hold No Value Anymore, Says Pump.fun CEO

In a constantly evolving crypto market, altcoins are often presented as innovative alternatives to bitcoin and ethereum. However, according to Alon Cohen, the co-founder of Pump.fun, the majority of them serve only one purpose: to be memecoins. According to him, the cryptocurrency market is flooded with projects that, although they claim to bring innovations or technical solutions, do not actually have any significant differentiation from memecoins.

Are altcoins just disguised memecoins?

Pump.fun is a platform specialized in the launch and promotion of memecoins, these cryptos inspired by viral trends and internet jokes. Its co-founder, Alon Cohen, claims that most altcoins do not have any real technical or economic utility. Instead, they primarily function as speculative instruments based on fads and virality.

Moreover, many altcoins emerge with promises to revolutionize various sectors, but deep down, they all look alike. They often rely on already established ideas or imitate projects that have experienced some success, but without any real added value. Furthermore, investors are no longer necessarily looking for revolutionary projects. “People buy cryptos like they buy memes on the internet,” he explains.

Memecoins: A worrying crypto phenomenon?

The phenomenon of memecoins has gained momentum with Dogecoin, which has become a model for many new projects. Humor and internet culture are now used to attract investors, but it also raises concerns about excessive speculation and the resulting volatility. This approach could lead to a collapse of the crypto market, where thousands of projects would disappear, leaving only a few winners.

Additionally, many of these cryptos experience skyrocketing rises followed by dizzying falls, leaving some investors with heavy losses. Not to mention the increased risks of market manipulation and potential scams like Pump.fun, which was recently accused of promoting a Ponzi scheme.

The era of altcoins may therefore be marked by a large number of ephemeral projects that merely play on fads, rather than contributing to the evolution of the ecosystem, as ethereum does. Investing wisely and seeking projects with real added value becomes essential in this constantly evolving landscape.