A closely followed trader offers 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
The trader say memecoins offer something that most crypto assets do not: a degree of freedom from the hostile hands of the US Securities and Exchange Commission (SEC).
“Memecoins are one of the last frontiers that are in somewhat of an unregulated, untouchable position. Lack of regulation and the degenerates will gamble in PVP games (person vs. person) and it is one of the few places that allows 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 in the last cycle.
“In 2016-2018 this would happen under a veneer of sophistry, but 99% was simply made up marketing buzz and it would happen mainly on CEXs (centralized exchanges) simply because the regulators didn’t care and the 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 winds will eventually change as traders turn their attention to high-value crypto projects.
“Many are currently ignoring the new technology, the challenges, the solutions, the experiments. In an attention economy, this segment is now cheap…
Join if it’s cheap. Support the movement. Dive into the trenches and contribute something that goes far.
It could be the wrong bet as idiocy continues to falter, but nothing lasts forever. If the decentralization movement is to take hold, we will be part of building the next web and the tech fever will return.”
Don’t miss a beat – Subscribe to receive email alerts straight to your inbox
Check price action
Follow us further X, Facebook And Telegram
Surf to the Daily Hodl mix
Generated image: Midjourney