Cardano (Ada) founder Charles Hoskinson believes that Memecoins are as celebrities who witness short -lived fame before they flame.
In a new interview on The Wolf of All Streets YouTube Channel, Hoskinson out Memecoins must evolve and develop use cases and user base to prevent you from going through a ‘dumping’ – the practice of launching tokens with the sole purpose of enriching insiders.
“So a memecoin is, just like the predominance of a celebrity that has 15 minutes of fame. It does not necessarily mean that the celebrity will disappear forever, but they are in a temporary state of popularity. They must find a way to become sustainable, stop the people quickly or else.
They have to. It is the only way they can survive. So you usually have to build a community, you have to start doing things with that community, you have to have a reason for people to be there and to keep investing.
And it is really difficult because, almost always, the distributions of memecoins are built for Insider Dump. So the person who spends it, and the insiders who publish it is their only stimulus to pump the price to dump the price. So they have to survive the dumping. ‘
Hoskinson also warns that Memecoins hurt the Crypto industry, because emptents tend to dispose of capital of market participants instead of increasing the adoption of digital assets
‘What happens is that you move water from one side of the bath to the other side of the bathtub … [and] The drain is open, it is in the bag of the founder. So you don’t actually add water to the tub, you lose water over time … It is Netnet neutral or negative. “
https://www.youtube.com/watch?v=8A2XAAV87YW
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