Benjamin Cowen argues that the rise of meme coins has damaged the crypto industry, leading to unsustainable speculation and distracting from real innovation. He believes meme coins are a major issue and urges investors to avoid them.
1. Meme coins have taken over the crypto narrative
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Crypto is now heavily associated with meme coins, unlike past cycles where serious projects drove innovation.
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Influencers promote meme coins because they receive early allocations and then dump on retail investors.
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This is a zero-sum game where insiders profit while everyday investors are left holding worthless tokens.
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Meme coins used to be a side distraction but have now become the dominant force in crypto speculation.
2. Solana’s meme coin problem – a hidden weakness
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Many believe meme coins fueled Solana’s price surge, but Cowen argues they actually hurt it.
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The massive losses from meme coin speculation create constant sell pressure on SOL, preventing long-term price appreciation.
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Solana’s momentum against Bitcoin stalled after meme coin platforms launched in early 2024.
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Retail traders lose their SOL in meme coin speculation, while insiders cash out, draining liquidity from the ecosystem.
3. Meme coins are not sustainable investments
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Many meme coins lose over 80% of their value within weeks, proving they are not viable long-term investments.
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History shows that distractions like ICOs in 2017 and NFTs in 2021 hurt altcoins—meme coins are now playing the same role.
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Meme coins contribute nothing to crypto’s real-world adoption and are purely tools for short-term speculation.
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Exchanges push meme coins for trading fees, knowing retail investors will lose money, while serious projects struggle to get listed.
4. Free markets will eventually punish meme coins
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The free market will self-correct, just like past crypto bubbles.
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Meme coins don’t create real value, and their prices will eventually trend toward zero.
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The real issue is that new retail investors get burned and leave crypto altogether, preventing long-term industry growth.
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Bitcoin dominance is at 61%, showing that altcoins, including meme coins, are still in a prolonged bear market.
5. The crypto industry must refocus on real value
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If investors stop chasing meme coins, exchanges will no longer be incentivized to promote them.
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The industry should prioritize meaningful projects over hype-driven gambling.
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Investors should focus on Bitcoin and quality altcoins rather than falling for meme coin pumps.
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Market corrections will eventually force crypto back onto a healthier path, even if it takes time.
Final take: Meme coins are damaging the industry by driving unsustainable speculation and draining liquidity from real projects. Until retail investors reject meme coins, exchanges will keep promoting them. The future of crypto depends on refocusing on innovation instead of hype-driven gambling.
