The founder of the cryptocurrency information platform CoinGecko, Bobby Ong, stated that a series of failed token launches and rug pull incidents have led investors to lose interest in memecoins. “Memecoins have indeed declined at this point,” he noted, but those “higher quality” tokens that can capture user attention may have a chance to survive in the market.
In a report released on March 6, Ong pointed out that following the LIBRA incident related to the Argentine president, the relevant metrics of the token launch platform Pump.fun saw a significant decline. The number of newly created tokens on the platform and the daily graduation (meeting the standards to be listed on exchanges) of tokens has dropped by over 90% since the peak in February. His report stated:
Despite this, Ong believes that memecoins are inherently “seasonal,” with their popularity fluctuating over time. However, this also means that those memecoins that can survive across cycles and continue to develop are extremely rare. He mentioned that memecoins like Dogecoin (DOGE), Shiba Inu (SHIB), and BONK “have withstood the test of market cycles, providing lessons for those creators who wish to build long-term assets.”
Reflecting on KOL Murad’s speech about the memecoin super cycle at the TOKEN2049 conference last September, Ong stated that the most successful memecoins are able to establish cult-like communities, driven by passionate beliefs that they will not sell, and continue to create content and stories. Ong further wrote:
Ong speculated that the memecoin market might trend towards “extreme power law,” where 99.99% will fail and only a very small number will stand out. Data source
