Memecoin Decline: Why Some Survive and Others Fade Away

Memecoins have seen a dramatic fall from their peak, with many investors facing significant losses in the current market conditions.

Despite the downturn, Bobby Ong, the founder of CoinGecko, remains optimistic, suggesting that memecoins could eventually make a comeback.

Ong points to a series of events that led to the decline of the memecoin trend, specifically citing problematic launches and instances of fraud, such as “rug pulls,” which severely dampened investor enthusiasm. He named the introduction of coins like TRUMP, MELANIA, and LIBRA as key factors that marked the end of the memecoin craze.

Ong argued that the launch of these coins drew in liquidity and diverted attention from other cryptocurrencies, ultimately killing the hype around memecoins. The release of LIBRA, in particular, exposed the darker side of the memecoin market, revealing how insiders and secretive groups profit from the investments of regular users.

Despite the ongoing volatility, Ong believes that some memecoins will survive and emerge stronger, citing Dogecoin (DOGE), Shiba Inu (SHIB), and Bonk (BONK) as examples of memecoins that have weathered market downturns.

Ong suggests that the key to their success lies in fostering vibrant communities that are committed and actively engaged, providing a foundation for long-term growth, even when market conditions are challenging.