Memecoins
Meme Coins Are “A Pure Ponzi” And “Destroying Crypto,” Says Trader Who Thinks Dogecoin Was Different
April 26, 2024 3:28 p.m. | 2 minutes of reading |
Amid coin super cycle frenzy, swing trader Picolas Cage took a stand against the coins themselves, arguing that they are harmful to the global cryptocurrency ecosystem.
What happened: “They are technically disinterested and offer nothing other than a pure ponzi,” the trader writes, emphasizing their lack of substance.
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IMO memecoins are destroying crypto.
I still maintain the opinion that memecoins are a net negative for this space.
They are technically disinterested and offer nothing more than a pure ponzi.
They are predatory in nature and usually create a market…
– Picolas Cage (@Picolas_Caged) April 25, 2024
He criticized their predatory nature, suggesting that they create an unfair market environment in which less informed participants are pitted against more savvy traders.
What is the process: According to Picolas Cage, savvy traders mine coins even by accumulating large positions through liquidity pools and MEV bots without having a significant impact on prices. They then promote these meme coins to their followers, creating artificial demand and enticing less experienced investors to subscribe.
This process, he claims, perpetuates a “Player vs. Player” dynamic disguised as “Player vs. Environment,” in which large corporations sell their holdings to unsuspecting individuals in the hopes of obtaining massive returns.
He also notes that meme coins distract from real technological innovations and potential wealth generation opportunities in the broader crypto market.
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Read also: Are Dogecoin and Shiba Inu ready for the next step?
Why is this important: Cage traces the bullish phase of meme coins back to Dogecoin (CRYPTO: DOGE) previous pumping cycle, powered by “normies” using the benefits of Stoppage of play stock investments to enter the crypto market and show the “crypto bros” the proverbial middle finger. This, however, contrasts with the new generation of meme pieces that Cage sees as purely extractive.
In conclusion, Picolas Cage’s critique raises important questions about the impact of meme coins on the cryptocurrency market and the risks they pose to uninformed investors.
And after: The influence of the pieces themselves and Bitcoin as an institutional asset class are topics that should be explored in depth at the next Benzinga conference The future of digital assets event on November 19.
This content was partially produced using AI tools and was reviewed and published by Benzinga editors.
Image: Shutterstock
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