n a recent research from Binance, it is indicated that approximately 95% of memecoins are practically dead, with no sign of recovery and the majority of tokens already defunct soon after their launch known as a pump and dump scam, which are prevalent in the market and often affecting innocent people
Economic Drivers
Millennials and Gen Z are using memecoins as a scapegoat, due to financial challenges, especially young investors. Inflation, soaring house expenses, and wage stagnation have led these generations to seek other investment opportunities. One of the main driving force to this is the COVID-19, and the economical difficulities that came afterwords.
Cultural Impact
Memecoins have moved from being just assets to represent digital persona and resistance to oppression. Like other cryptocurrencies, these tokens act as protest tools against traditional financial systems, popularized by the events of 2021 and social media.
Innovation Concerns
The study also raises concerns about memecoins taking centre stage instead of real blockchain developments. Even though tokens show that blockchain has the ability to build communities these they might overshadow projects embracing the development of core block chain technologies.
A Troubling Reflection of Crypto Market Trends
The memecoin phenomenon is a manifestation of other economic and social trends but is dangerous for the development of blockchain. However, given the fact that the majority of ICOs fail and these tokens seem to offer no underlying utility, their effects convey important concerns regarding the future of the crypto market.
