Crypto exchanges rush to list meme coins to capitalize on the craze, prompting prominent figures in the crypto community to caution against irrational investor behavior.
Ki Young Ju, the head of analytical blockchain startup CryptoQuant, has emerged as a vocal critic of the meme coin hype, saying that meme coins “harm the crypto industry,” as the capitalization of the sector neared $47 billion, according to CoinGecko data.
In an X thread on Mar. 18, the CryptoQuant CEO addressed the rapid growth of meme coins, saying it’s “frustrating to see billion-dollar-cap memecoins overshadow hardworking teams building legit products to advance this industry.” Ju particularly drew parallels between meme coins and “shitcoins” from the 2018 ICO boom, suggesting that the practice of raising investments through tokens lacked social value and resembled gambling in a casino.
“ICOs attracted new investors in 2018, but they at least pretended to build products. Now, crypto developers just start meme coins rather than building something. It’s a lot worse than shitcoin ICOs.”
Ki Young Ju
The crypto community seems divided on Ju’s remarks, with some arguing that meme coins have brought new investors and excitement to the crypto space, potentially benefiting the industry by attracting more capital and attention. While Ju acknowledges this perspective, he also highlighted that the craze “might be bad experience for newbies.”
Ki Young Ju’s comments follow the news about another meme coin called Slerf, whose developer accidentally burned $10 million of investors’ funds, became the eighth meme coin by market capitalization, propelling its market valuation to $600 million.
