The resurgence of the crypto bull market has brought with it the rise of memecoins, a symbol that euphoria is returning to the market. Traders have been making headlines with stories of turning small investments into multimillion-dollar jackpots by getting in early on explosive tokens. However, for every major success story, there are countless others who have lost significant amounts of money by betting on the wrong coin.
Opinions on memecoins are varied. Some believe they bring a sense of joy and fun to the crypto world, filling a void that often exists. Others think they distract from the real-world issues that blockchain aims to solve.
In episode 14 of The Agenda podcast, hosts Jonathan DeYoung and Ray Salmond speak with Andreas Brekken, the founder of SideShift.ai, a no-sign-up crypto exchange. They discuss the positives and negatives associated with the memecoin frenzy and what it means for the crypto industry as a whole.
Brekken believes that memecoins are a great and friendly way for everyday people to engage with crypto using their smartphones. He sees them as harmless and believes they help people learn more about cryptocurrencies and blockchain technology. He also believes that memecoins serve as a testing ground for the technology, forcing networks to improve their speed and reliability.
When asked what serious crypto projects can learn from memecoins, Brekken praises the speed at which memecoins build strong communities. He also highlights the commitment of memecoin developers who burn their liquidity provider tokens, setting an example for other developers to follow.
While many memecoins have no intrinsic or real-world value and are treated as gambling opportunities, Brekken warns that a significant number of memecoin projects turn out to be scams or rug pulls, leaving investors at risk of losing their funds. He compares gambling on memecoins to gambling in Vegas or on sports, where some people have fun with a small amount of money, while others make risky bets that can lead to significant losses.
Brekken emphasizes the importance of zooming out and looking at the bigger picture rather than solely focusing on memecoins. He encourages listeners to consider the broader influence of memecoin seasons on the crypto ecosystem.
To hear more from Brekken’s conversation on The Agenda, including his thoughts on token names and free speech, the future of memecoins, and how memecoin seasons impact the broader crypto ecosystem, listen to the full episode on Cointelegraph’s Podcasts page, Apple Podcasts, or Spotify. And don’t forget to check out Cointelegraph’s full lineup of other shows!
Please note that this article is for general information purposes only and should not be considered legal or investment advice. The views expressed here are the author’s alone and do not necessarily reflect the views of Cointelegraph.