Can Memecoins Like Shiba Inu and PEPE Outlast Skepticism and Scandal?
- Memecoins like Dogecoin and Shiba Inu gained popularity but face skepticism due to extreme volatility and lack of real-world utility.
- Brian Armstrong compares memecoins to Bitcoin’s early days, citing community support, but critics highlight insider trading and market manipulation.
Memecoins, digital tokens inspired by internet jokes, have become a polarizing force in cryptocurrency markets. While some investors view them as high-reward opportunities, experts question their long-term viability due to extreme price swings and structural flaws.
Coinbase CEO Brian Armstrong recently compared memecoins to Bitcoin’s early days, suggesting their community-driven nature could lead to broader adoption. He cited Dogecoin and Shiba Inu as examples of tokens gaining traction through social media buzz and celebrity endorsements. However, Armstrong’s optimism contrasts with mounting skepticism.
On memecoins…
Memecoins have generated a lot of buzz recently, and I’ve gotten some questions on how I think about them. I am personally not a memecoin trader (beyond a few test trades), but they’ve become hugely popular. Arguably, they've been with us since the beginning –…
— Brian Armstrong (@brian_armstrong) February 19, 2025
A $4 billion scandal involving Argentine political figures , dubbed “Libragate,” exposed vulnerabilities in memecoin projects. Nic Carter, a crypto analyst, argued that claims of “fair launches” for these tokens were misleading, with insider trading and automated bots distorting prices.
Some memecoins have clearly gone too far lately, to the extent people are insider trading. This is illegal, and people should understand that you will go to prison for this. In every crypto cycle, there is a get rich quick crowd that comes and goes, and learns this lesson the hard way. Don’t break the law! And don’t try to get rich quick. You should get rich by contributing real lasting value to society (or at least be trying – it’s not easy!).
Data from the 2023-2024 memecoin surge reveals a pattern of instability. Over 2.3 million new tokens flooded markets during this period, driving temporary spikes in valuations. For example, Pepe [ PEPE ] rose 93% in weeks before correcting sharply. Similarly, Shiba Inu’s value fluctuated as large investors reduced holdings, signaling weakening confidence. These swings highlight a reliance on speculation rather than functional use cases.
Unlike Bitcoin or Ethereum, memecoins lack clear frameworks for oversight, leaving investors exposed to potential fraud. The Trump-linked [ TRUMP ] token, which surged and collapsed within months, exemplifies how quickly sentiment can shift.
Armstrong’s comparison to Bitcoin’s evolution faces scrutiny. While Bitcoin developed infrastructure for payments and storage, most memecoins remain tied to online trends. Their value often hinges on viral moments rather than technological advancements.
The memecoin market now exceeds $69 billion in total capitalization, but sustainability concerns persist. Without tangible applications or regulated safeguards, these tokens resemble high-risk bets more than stable financial instruments.
As the Libragate scandal shows, trust in memecoin projects is fragile, and their future may depend on addressing transparency gaps.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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