Memecoin Problems
The TLDRooor
greed > trust
shit memes that aren't even memes
young "devs" aren't actually devs
spammy unoriginal marketing
victims of the "normie onboarding" myth
scam volume
CTO farms
1) Greed Over Trust
Degens aren't taking the time to properly vet the projects they ape into.
Instead they look quickly at "entry points", hoping to grab a bag of the next Moodeng, Popcat, etc, right before it explodes.
2) Shit memes
Random pics of cute dogs or cats are not memes.
They are attempts at fabricating memes from marketcap and bagholdooors.
These are all bound to fail when the marketcap falls.
3) Youthful fake devs
Creating a meme token is not "dev" work.
It takes 30 seconds of image uploading, a few clicks, and 0.02 SOL.
The vast majority are high school kids looking to get rich quick without any personal funds to protect the value of their token.
Without eventual buyooors these projects are doomed to fail as the devs get distracted by the hobbies of youth (aka getting rowdy with the boys down at the pub).
This is most obvious in projects with sustained sub $50k marketcaps.
4) Spammy Marketing
Most memecoins focus on a single technique for growing awareness of their project & token:
Spam their CA and meme on every scammy twitter kol possible
Look at any engagement farmooors tweet and you'll see it in action.
This doesn't work anymore and not sure it ever did.
5) Buying in to the Normie Onboarding Myth
Many memes are being marketed today as the "next normie onboarder".
"It's popular on Tiktok!"
"Normies know about this one!"
Normies and their "big bags of fiat" aren't coming anytime soon and they're definitely not coming to buy our shitcoin bags.
This is a PvP liquidity battleground and will stay this way for years to come.
Will your normie-friendly memecoin still be around in a few years?
6) Toxic Scam Volume
The cabals and rugooors have one effective strategy that works 99% of the time to extract value from unaware degens: toxic volume bots.
These sophisticated bots can create a false sense of market attention, holder distribution, and upward velocity on any meme token.
They will bundle their launch to hold the majority of the supply, use SOL to pump it up to a target marketcap, and then proceed to dump that supply on everyone's heads, sometimes slowly, sometimes not.
7) CTO Farms
It's come to the point where degens only trust "community takeovers" (CTOs) for their investments.
Numerous problems here...
1) Many CTOs are run by rugged bagholders trying to desperately save themselves so they can exit. These poor rugged souls are typically not capable of reviving dead projects.
2) Some CTO teams are malicious and will attempt to extract more value through instilling fake hope in desperate bagholders.
3) The majority of CTOs are still suffering from the toxic volume bots. These bots will continue to pump'n'dump on people until they run out of funds or the owners deactivate them.
4) Good CTOs require funding that most poor degens just don't have.
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