A closely followed trader is offering his two cents on why he thinks memecoins have exploded in popularity among crypto traders.
Pseudonymous analyst Jack Sparrow tells his 251,000 followers on the social media platform X that traders are not sinking capital on memecoins because they believe in their fundamentals or whether meme communities will serve as the cornerstone of the future of finance.
The trader says memecoins offer something that most crypto assets don’t: a degree of freedom from the hostile hands of the U.S. Securities and Exchange Commission (SEC).
“Memecoins are one of the final frontiers that are somewhat in an unregulated untouchable position. Lack of regulation and the degenerates will gamble in PVP (person vs. person) style games and it being one of the few places left possible without restrictions.”
According to the analyst, the exact same scenario has played out before such as the launch of decentralized finance (DeFi) and non-fungible token (NFT) coins last cycle.
“In 2016-2018, this would occur under a veneer of sophistry, but 99% was just plain made-up marketeering buzz bullshit and it would occur mostly on CEXs (centralized exchanges) simply because regulators didn’t care and execution was better.
Later it was DeFi, NFTs, etc. that took off.”
The trader adds that people are getting into memecoins now because they are relatively cheap but notes that the wind will eventually shift when traders turn their attention toward quality crypto projects.
“Many are ignoring the new tech, the challenges, the solutions, the experiments, at this moment. In an attention economy, this segment is now cheap…
Get involved when it’s cheap. Support the movement. Get in the trenches and contribute something that carries a long way.
Might be the wrong bet if idiocracy keeps on reeling but nothing lasts forever. If the decentralization movement is to last, we are part of building the next web and the tech fever will return.”
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The post Trader Explains Why Memecoins Are Seeing Massive Trader Interest, Likens Segment to DeFi and NFTs of 2020 Cycle appeared first on The Daily Hodl.