Meme Coins: A Young Phenomenon in Crypto

Meme coins are a relatively new trend in the cryptocurrency world. Although they currently face issues of rug pulls and scams, there is potential for meaningful evolution.

BeInCrypto spoke with Charles D’Haussy, CEO of the dYdX Foundation, at Consensus Hong Kong about the future of meme coins and expectations for the crypto industry with Donald Trump in office.

Next Steps for Meme Coins

February was a challenging month for meme coins, negatively affecting Web3 adoption. The Libra scandal led to substantial losses, raising concerns about its lasting impact on new users in the crypto space.

The launch of meme coins associated with Trump and his wife led to intriguing reflections on the future of political figures utilizing them. D’Haussy suggests that this trend may depend on perspective.

A Tool for Measuring Market Sentiment

The TRUMP and MELANIA meme coins reflected market sentiment surrounding Trump’s presidency, illustrating a bullish outlook among the crypto community. Performance dropped when crypto wasn’t mentioned in Trump’s inaugural speech, showcasing the ties between political performance and trading activity.

Meme Coin Use Among Younger Age Groups

Meme coins serve as direct access points to crypto but lack utility. D’Haussy argues that their fundamental honesty allows for a measure of public sentiment, making them popular among younger demographics, which do not typically include older generations.

Fundraising as a Use Case

Meme coins might become tools for fundraising, as community support can elevate their success. Prominent figures have launched meme coins, hinting at their potential to replace traditional fundraising methods. However, safeguards are vital to prevent exploitation.

A Potential Beyond Speculation

D’Haussy believes meme coins’ purposes may evolve, moving away from speculation and serving as means for individuals to express support for causes or figures they believe in. He emphasizes the need for clear education on the risks involved.

The Need for Industry-Driven Standards

Industry leaders should establish better frameworks for launching meme coins to reduce risks like rug pulls. This includes creating standards for supply release and monitoring which can improve consumer trust and market stability.

Exercising Responsibility Over Risk

D’Haussy urges patience and planning for success in crypto, as emotional trading can lead to poor decisions. Investors should size their risk accordingly, particularly in meme coin investments.

At the End of the Day, Trump Is a Politician

D’Haussy notes that, while the crypto community welcomed Trump’s presidency, they shouldn’t expect immediate changes. Trump’s agenda prioritizes broader American interests, which includes, but isn’t limited to, crypto. The path forward will require patience and realistic expectations.