What Use Memecoins? 🤥
Does crypto need all the dumb memecoins? 2.52M altcoins ruining the future? Buterin lists uses. Novogratz calls it crypto cornerstone. DJT, Trump, pharma bro and a big bet. Hoskinson's pig flies high.
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The memecoin market has gone full circus act.
Trump's diving headfirst into the crypto craze.
Did we really think he'd skip the memecoin mayhem? Nope.
What on earth is DJT? We’ll unpack later.
First, we've got rappers with forehead tattoos shilling their own tokens (Lil Pump, anyone?).
Celebrities jumping in with questionable projects (looking at you, Caitlyn Jenner).
Regulators scratching their heads over "BONK ETFs" (seriously, SEC?).
Hold on, are memecoins all just jokes?
What is the value they add to the crypto mix?
A fun way for adoption? What else?
Vitalik Buterin makes the case.
ZK reputation/identity/credentials: memecoins as a way to build your cred in online communities.
P2P cross-border payments: Can be used to facilitate small, informal, cross-border transactions.
Decentralized social: Decentralised social platforms could use memecoins to tip creators and boost engagement.
Prediction markets: Could fuel prediction markets where people bet on future events.
Privacy: Some memecoins might offer anonymous transactions for added privacy.
Enterprise apps via ZK validiums: Niche enterprise applications could leverage memecoins within zk validiums (a type of scaling solution).
ZK + censorship resistant voting: Could be used in community voting systems to make decisions and shape project direction.
Buterin’s reply to this post on X.
Yes, Vitalik believes memecoins can be a tool for good.
But, not a fan of celebrity memecoins.
“Make something that lasts 10+ years, rather than bubbling around for a few months and then being forgotten.”
Vitalik Buterin, might be wrong?
Here’s the arguments made by Blockworks’ David Canellis.
Appeal to Mainstream: Unlike most cryptocurrencies, memecoins with celebrity endorsements can attract new users to the crypto space.
Benchmarking for Blockchains: Memecoin trading volume tests the capacity and scalability of blockchains.
Adapting to Existing Culture: Celebrities are entering the crypto space using familiar platforms like DEXs, cheap blockchains, and social media - a natural starting point.
Stress Testing Infrastructure: The surge in memecoin trading pushes blockchains to their limits, revealing weaknesses and prompting upgrades.
Read: Vitalik is wrong: Crypto really needs dumb memecoins
While Bitcoin steals the headlines, memecoins have quietly become 2024's hottest investment, some skyrocketing over 1,300%.
Read: Laughing At Memecoins Like Iggy Azalea’s Mother? Joke Might Be On You
Novogratz calls them the "cornerstone" of the crypto industry.
Galaxy Digital CEO Michael Novogratz offers two ways to profit from memecoins:
1/ Picking the right one.
2/ Creating your own.
Some popular celebrity tokens
JENNER (Caitlyn Jenner): Launched with a bang but has since fallen in value. Caitlyn continues to promote it, even launching an Ethereum version with a portion of profits going to Donald Trump's re-election campaign.
MOTHER (Iggy Azalea): The rapper actively promotes this token, distancing herself from earlier controversies. It boasts a growing community and support from other crypto projects.
Read: Thursday big Mailbag Q: Will Iggy Azalea take crypto mainstream?
TRUMP (MAGA): This token, referencing the former US President, is serious about charity, donating a portion of its revenue. It's seen significant growth in 2024.
ZACK (Zack Morris): A controversial figure known for market manipulation is behind this token, which has a strong community despite its short lifespan.
DAVIDO (Davido): This Afrobeats musician's token launch was met with skepticism due to his past involvement in questionable ventures. Its value has plummeted.
lil pump (Lil Pump): The rapper entered the memecoin craze and has been actively promoting the token on social media, even going as far as getting a Solana logo tattooed on his forehead.
Read: Celeb Crypto Handler Gone Rogue? 🐗
Token Dispatch view?
They open the door with low entry barrier.
What? Celebrities bring eyeballs, and with them, new folks to crypto.
This can be a gateway to exploring other cryptos.
Memecoins are mostly cheap and easy to buy.
Memecoins could bring more adoption.
A double-edged sword: lack real utility (right now) and experience wild price swings.
Block That Quote 🎙️
Cardano founder, Charles Hoskinson.
“I'm at a loss that a picture of my pig has resulted in a memecoin that is nearly at a million dollars in under 12 hours.”
Hoskinson is back in the scenes, but this time it's not about upgrades or blockchain.
This is about a meme coin inspired by his pet pig, Nike.
He posted this a few days ago.
The internet did its thing.
Now Nike is a memecoin and is up 76% in the past 24 hours.
Market cap? $9 million.
NIKE's rise might challenge SNEK, the current Cardano memecoin king with a $74 million market cap.
Trump, DJT Token, Pharma Bro And A Big Bet
Spiced up the week.
Look at the mix, what do you expect?
Here's everything we know.
The DJT token
A Solana-based memecoin reached a market cap of $383 million.
The rumours and the initials said it's related to the Trump family.
Shkreli's Claims
Martin Shkreli - a convicted securities fraudster, the infamous "Pharma Bro."
He has come forward claiming that he co-created the DJT token with Barron Trump, the youngest son of Donald Trump.
Shkreli, who was released from prison in May 2022, says he has over 1,000 pieces of evidence proving his involvement in the token's creation.
The Bet: A $100 million bet was placed by pseudonymous crypto trader GCR - bet that the Trumps have nothing to do with DJT.
Shkreli accepted the bet, claiming that he would prove the token's authenticity.
The bet was later called off because the parties involved couldn’t agree on the terms.
The ZachXBT proof: Shkreli reportedly messaged ZachXBT privately, boasting about having "over 1,000 pieces of evidence" proving his involvement with a mysterious "Barron" in creating DJT.
ZachXBT found a connection between a large DJT seller and Shkreli through blockchain data.
This seller dumped DJT worth $832,000 and also held a significant amount of tokens from Shkreli's own project.
$150,000 Bounty
ZachXBT pockets Arkham Intelligence $150,000 bounty.
Stone Debunks
Roger Stone, a close advisor to former President Donald Trump, has thrown cold water on rumours.
In The Numbers 🔢
2.5 million
Altcoins in existence.
An overwhelming abundance of altcoins - "altcoinpocalypse" is hitting the entire industry.
Despite the scars of 2022, new altcoin launches are surging again, with over a million appearing since April alone.
Why is this a problem? It's simple. Too many cooks spoil the broth.
With a constant influx of new coins, the market gets flooded with supply.
Prices get pushed down, just like inflation erodes the value of traditional currencies.
Miles Deutscher, crypto analyst: How altcoin dispersion is killing crypto.
Many of these new tokens have weak fundamentals (low usefulness and high existing supply).
Retail gets shut out: Retail investors, the lifeblood of any market, are feeling the squeeze.
VCs often get in early at low prices, leaving retail with inflated tokens with little room for growth.
This "retail gets screwed" environment discourages new investment.
So, what's the solution? A multi-pronged approach is needed.
Exchanges could have stricter listing requirements, projects could offer fairer allocations to the community, and token unlock schedules could be adjusted to prevent dumping.
A more retail-friendly environment.
Daddy Goes Down
Andrew Tate's foray into crypto is hitting a rough patch.
His DADDY memecoin tanks. Look at the wreck?
Why was it launched? To contrast Iggy Azalea’s MOTHER meme coin.
Tate had big plans
Burning bridges (and coins): To convert DADDY into a scarce NFT, he promised to "burn" some coins himself to boost exclusivity.
Daddy university? Planned for DADDY to unlock exclusive access to his "Real World University" and even generate passive income for students.
The bot plan: Raffay Alvi, a crypto influencer, proposed a new utility plan for the coin. The plan involves a trading bot that operates on various blockchain platforms.
Skepticism reigns supreme: Despite Tate's ambitious announcements, the crypto community remains unconvinced.
All these ambitions announcements crash-landing.
Why? Whispers of insider trading before the launch and the overall volatility of memecoins.
The Surfer 🏄
Winklevoss twins pledge $2 million in Bitcoin to support former President Donald Trump's reelection campaign. They claim that President Joe Biden has waged war on cryptocurrency, while Trump is pro-Bitcoin and pro-crypto.
Michelle Bond, a prominent crypto lobbyist, has launched a new think tank called Digital Future. Bond believes that if Donald Trump gets re-elected, he will pick the right regulators for the crypto industry, benefiting the sector.
Anime-themed NFT brand Azuki hires former Hollywood exec Steve Chung as COO. Chung aims to expand Azuki's fanbase and revenue with Hollywood and Silicon Valley expertise.
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