Charles Hoskinson, the founder of Cardano, thinks memecoins are like fleeting celebrity trends. They might be popular for a short time, but without a change, they’ll fade away.
The Memecoin Problem: 15 Minutes of Fame
Hoskinson compared memecoins to celebrities with only 15 minutes of fame. He argues that most memecoins are doomed to fail because they’re designed for the creators to quickly profit and then leave investors holding the bag. He calls this “dumpening.” To survive, memecoins need to build sustainable communities and develop real-world use cases.
Building a Sustainable Ecosystem
Hoskinson emphasized the importance of community building and providing real value for investors. He says successful memecoins will need to pivot and become more than just a hype-driven investment. This means creating a useful ecosystem and giving people reasons to stay involved long-term.
Memecoins Hurt the Crypto Industry
Hoskinson also pointed out that the current memecoin model actually harms the broader cryptocurrency market. He described it as simply moving money around, with the creators ultimately benefiting at the expense of investors. This doesn’t grow the overall crypto market; it just shuffles existing money. Instead of adding value, it results in a net loss for the industry.
