Crypto: The Golden Age of Memecoins Is Over – Their Decline Has Begun

Criticism against memecoins continues relentlessly. After Vitalik Buterin and CZ, it is now Cathie Wood’s turn to take aim at these digital assets. According to her, these cryptos will inevitably become worthless. But one exception draws her attention: Donald Trump’s memecoin, $TRUMP. Between skepticism and opportunism, the future of memecoins seems more uncertain than ever.

Cathie Wood throws a stone in the pond: memecoins will soon be worthless!

Cathie Wood does not mince her words: “There is nothing like losing money to learn.”

Her observation is brutal. The majority of memecoins are doomed to disappear. A view shared by Bobby Ong, co-founder of CoinGecko, who estimates that 99.99% of them will end up forgotten.

However, some exceptions exist. According to Wood, a few memecoins could survive as “digital collector’s items“. Among them, $TRUMP, Donald Trump’s memecoin, which could become a long-term speculative object.

But how many will actually survive the storm that shakes the market?

The frenzy of memecoins has seen ups and downs, but their true test lies in their ability to maintain a loyal community. Some, like Dogecoin and Shiba Inu, have proven that a strong attachment from traders can help them weather the crises.

So, will $TRUMP follow this path or sink like so many others?

The crypto market in full disillusionment facing memecoins

Since the peak of memecoins in January, the trend has reversed sharply. After the launch of $TRUMP, activity on Pump.fun reached a peak of $3.3 billion in weekly volume. But today, it is a downturn:

• The volume on Pump.fun dropped by 63% between January and February.
• The total market capitalization of memecoins fell from $124 billion to $54 billion.
• Political tokens like $TRUMP and $MELANIA absorbed all the liquidity from the market.

Bobby Ong emphasizes that the LIBRA affair was the fatal blow. This project, linked to Javier Milei, saw its investors stripped of $107 million in a matter of hours. Has this scandal marked the end of the enthusiasm for memecoins?

Interest in the market seems to be shifting back to more solid cryptos like bitcoin and ether. CoinGecko notes that investor attention is gradually turning away from memecoins in favor of higher market cap digital assets.

Yet, history has shown: crypto market cycles are unpredictable, and a resurgence of memecoins cannot be ruled out.

Crypto regulation: the SEC’s inaction worries investors

The Securities and Exchange Commission (SEC) has decided to not regulate memecoins, deeming them too speculative to be considered financial securities. A decision that relieves the creators of these digital assets, but leaves investors to their fate in a wild market.

Since this announcement, scandals have multiplied. The LIBRA affair marked a turning point: $107 million vanished in a few hours, revealing the extent of manipulations.

Coin Bureau warns: “Less than 1% of the memecoins on Pump.fun survive“, illustrating the brutality of the market.

Between rug pulls and drained liquidity, losses are accumulating.

The legal gray area benefits fraudsters and drives away financial institutions. The Kobeissi Letter highlights that the SEC acknowledges their “limited, if not nonexistent utility“, but refuses to intervene.

Meanwhile, market liquidity is evaporating, and traders’ confidence is eroding. How far will chaos go before regulators react?

The verdict is bitter for memecoins. Investors and promoters are paying the high price. Pump.fun has seen 99% of its tokens disappear in a month. Is the golden age of memecoins over, or is this just a calm before a new speculative cycle? One thing is certain: without a clear regulatory framework, only the strongest will survive.