According to reports, the once-thriving meme coin market is about to crash after the shocking $4 billion LIBRA scam involving Argentine President Javier Milei. Nic Carter, a partner at Castle Island Ventures, says the latest incident has shown how corrupt meme coins are, making them less trustworthy. Carter said in a post on X on February 19 that “meme coins are cooked.” He also said that the Libragate scandal has shown how unfair and opaque the industry is.Â
Fair Gambling to Market Manipulation
Carter agreed that meme coins were always a way to gamble, but he said that in the beginning, they were at least started naturally. This meant that small players could participate in a system they thought was primarily fair, where they thought the “casino was fair.”
But the latest wave of meme coin launches, which include ones linked to LIBRA, Donald Trump, influencer Haliey Welch, and other famous people, have changed this idea. Carter says that bots wrongly distributed and controlled these tokens, giving regular investors almost no chance of making money.
The Case for Memecoins
The founder of Backpack, Armani Ferrante, thinks that meme coins will still play an important role in shaping the future of cryptocurrency. He says they are a “stress test” for widespread use and help developers see how on-chain banking can change over time.
Ferrante said, “Memecoins is the toy; sooner rather than later, we’ll get what we all hope and dream about.” He thinks that real-world value will finally move onto the blockchain, making financial systems less reliant on trust and more effective.
CEO of Coinbase Encourages Communication
Brian Armstrong, CEO of Coinbase, has asked the crypto community to keep an open mind about the future of meme coins, even though the debate is still ongoing. He says that the idea of meme coins shouldn’t be thrown out completely, even though some projects may be flawed.
Conclusion
The Libragate incident has made people less confident in meme coins, as big names in the industry, like Nic Carter, have said they will fade. But some people, like Ferrante and Armstrong, think that meme coins can still lead to new ideas. We don’t know if meme coins are “cooked” or just changing, but one thing is for sure: the business world will never be the same.
