Meme Coin Industry Will Reduce Fraud Over Time | Airdrop Alert Pro

In February, a Libra scandal involving Argentina President Javier Milei shocked the cryptocurrency sector. This also angered many Web3 members, who believe meme coins have hurt the growth of the ecosystem and are not fairly targeting smaller investors.

Beincrypto talks with Memeland CEO and Founder ray Chen of Hong Kong Consensus discusses the latest events involving meme coin launches and the industry’s future.

Libra: From Tokens to Meme Coins

this Libra’s meme coin scandal It is unique in many ways. An unidentified group created a website for the “Viva La Libertad” project inspired by the Argentinian slogan President Javier Milei regularly uses.

The website remains active with a mission statement to promote the Argentina economy by funding small projects and local businesses. As part of the project strategy, use the Libra token startup for channel funding.

According to the token allocation graph, 50% of tokens will be used to drive growth in Argentina.

A few hours after the website was launched, the Libra token was Solana Blockchain. Half an hour after the token was launched, Miley made his first X post.

“A free Argentina growing! This private project will be dedicated to inspiring Argentina’s economic growth and funding small businesses and Argentina startups. The world wants to invest in Argentina.

In the same article, Milei provides links to the Viva La Libertad project website and Libra contract numbers. This logo allows investors to easily locate and start trading cryptocurrencies.

Soon, people began to realize that except for one token, Libra is similar to Same corner.

Meme coins face a stacked list of pumped lists

Milei’s social media posts triggered a surge in the price of tokens, with market cap exceeding $4 billion for hours. Allow this surge Insiders can cash in over $100 million in profits.

However, the gathering was short-lived. Meme coins are not Symbolism;The website was created hours before it was published, More than $87 million was cashed out Within the first three hours. The value of the token collapsed soon after, indicating a classic pumping scheme.

The plan has led to growing criticism, which has led Miley to remove his position and attempt to go backtrack. The president said he hasn’t fully understood the project yet, and after knowing more, He chose to stop acknowledging.

But the damage has been caused. A joint investigation by blockchain analytics company Bubblempas and chain chain researcher Coffezilla added salt to open wounds.

Investigation reveals evidence that Libra Tag Post Links to the Team Behind Melania CoinsThe day before Donald Trump’s term as U.S. president was initiated by First Lady Melania Trump.

The analysis confirms suspicion of insider trading and market manipulation in both cases. It also suggested that the group lead several other token launches, including Trust, Casey, Ambient and Hood, which all ended with a sniper plan and carpet pull.

In response to the scandal, members of the crypto community entered social media to vent their disappointment in the industry. Some believe that meme coins are mined to benefit large insider traders while permanently keeping smaller retail investors away from Web3.

“The crypto industry does not want to end up being an irrelevant circus and needs to be involved in serious self-criticism. For years, the major players in the ecosystem have been creating narratives, making them exaggerated and then dumping the tokens on retail investors. , making huge profits while pushing the public away from the space. Now it’s time, we all focus on building value rather than constantly figuring out how to quickly cash out at the expense of those who are just trying to explore what the space is.” explain Blockchain researcher Pablo Sabbatella.

For Memeland founder Ray Chan, a crypto expert with nearly two decades of experience in the Meme Coin industry, the event must be analyzed from different perspectives.

As we all know, the meme coin industry is mined. Community participation alone drives many of these coins. Trading is largely speculative, and the market is essentially volatile.

“For me, I think it’s very important to know who is starting the token and what it is for. If it’s a meme coin, you should expect it to reach zero. Because literally, I think the big of these meme coins Most mentioned that this token doesn’t have any roadmap or utility. I think it’s just for entertainment purposes. If you expect it to be billions all the time, you’re crazy. That’s on you,” Chen told Bay Ncropto.

However, Libra’s scandal is different from internal cases, etc. Melania coins emission. When Miley shared his original X post, he said the funds would support small businesses and budding Argentine entrepreneurs.

“But at the same time, for some tokens, maybe Libra, they mentioned that they are launching a token to support other companies to support some goals. If they don’t, I think that’s a problem,” he said. explain.

When asked how to protect users from common practices in meme coin trading, such as carpet pulling, pumping plans, internal activities, market manipulation or sniping, Chen said these issues may become less and less over time Fewer and fewer.

Meme coin industry is still in its early stages

Meme coins have been around for more than a decade. In mid-2013, the “Doge” internet meme became popular on social media.

Taking advantage of this trend, Jackson Palmer and Billy Markus create domycinlaunched it in the form of cryptocurrency on the BitCointalk forum in December of the same year. The event marks the difference between Dogecoin as the first cryptocurrency based on Internet memes.

According to Chan, given that the industry is still in an emerging stage, investors need to accept the natural turmoil in the market before deciding to participate.

“Before entering, or you invest $10,000 or $100,000, you have to understand that the industry is very new and anything new is very volatile. So it’s very important to understand the risk before you invest or do gambling,” he said.

Players with extensive knowledge and experience in this field will inevitably gain the upper hand.

Extend user pool

Since the meme coin industry is so new, players who are already proficient in their mechanics are more likely to profit from shared programs related to the market.

“I think it’s just part of the growing pain because like any technology and any industry, people who are very mature from the start may understand the loopholes. They will understand the opportunity, whether it’s good or bad, just grab it Live and make money.” Chen told Beincrypto.

These programs will become less frequent as the market ages and the meme coin industry attracts new players.

“Ultimately, expanding the audience to include more knowledgeable about cryptocurrencies and blockchain will attract well-known people with their own goals and reputations. As more and more legitimate companies and builders enter the space, I hope the whole thing is The industry can move in a healthier direction,” Chan explained.

therefore, Meme coins will no longer rely on important public figures Support them and focus more on the message they are trying to convey.

“I think the space will be in a better position when support for tokens is not driven by influencers but through an understanding of the team and their work. Once we get to that stage, it will be A healthier and more sustainable environment,” Chan added.

He also stressed that while the price of tokens based on community participation exaggerates the negative side, there is also a silver lining.

Every negative positive

Chan highlighted the key differences between building on Web2 and building on Web3 in an interview with Beincrypto.

“In Web2, companies rely heavily on venture capital and IPOs and face many restrictions. However, in Web3, venture capital will become less important if you can mobilize a community that understands and supports what you are building.” Chan explained.

Additionally, starting meme coins is one of the easiest processes on Web3. Anyone can do this, and it has become one of the most important drivers of its success.

“The first is the convenience of creation. I actually think that tokens are a bit like content. When you lower the barriers to creation, more quote creators are added and they create more content. I think the meme coins are in cryptocurrency. The lowest barrier. That explains why so many new coins are launched every day,” he said.

Co-utilizing these basic aspects of meme coins release, prioritizing substance over hype for specific purposes may result in more meaningful results.

“In fact, you can turn what’s called consumers into supporters, and you can even turn your investors into investors. I think all of this development and breakthroughs, once you understand them, you’re not in cryptocurrency and It’s easy to abandon this in blockchain,” Chan added.

In view of these unique aspects, Chan hopes that Meme coins have a bright future.

The future of meme coins

Chen believes that the meme coin trend reflects a general trend in technological development. Science and technology are often intended to provide meaningful solutions to existing problems.

Scientists have developed vaccines to prevent terminal illnesses such as polio and influenza, while engineers have invented aircraft to make the world more interconnected.

Satoshi Nakamoto Bitcoin developed similarly can provide an alternative to traditional financial systems. Blockchain Solve acute problems related to data storage, users Safetysupply chain management, and vote System, just to name a few.

However, not all technologies are equal in popularity.

“For example, when you look at a social network, the most useful social network is LinkedIn, but the most popular social network is Tiktok. That’s because it’s fun, engaging, and easy to join and participate.”

Since Meme coins in Web3 have similar purposes to Tiktok in Web2, they can be leveraged to drive further adoption for long-term adoption.

“I think Meme Coin is a crypto Tiktok. A lot of people say it’s useless, but a lot of people join it. It’s actually the biggest driver of mass adoption. So when cryptocurrencies get more mainstream and zone As blockchain is becoming more and more common, Meme Coin will gain more market share as a category,” Chan concluded.

Chan’s predictions are implemented largely depending on the perspective of the cryptocurrency sector, especially the way recent users interact with meme coins.

Only time will tell whether the cryptocurrency industry’s recent series of plans will keep people away from the industry or whether the meme coin market will mature like premium wines.