According to Odaily, Messari data engineer Mike Kremer has described meme coins as the most extractive phenomenon in the crypto space since the 2017 ICO boom. Kremer noted that while speculative bubbles and assets have always been part of the crypto ecosystem, retail investors' pursuit of the latest crypto trends often leaves some residual value. He explained that during the DeFi season, projects like Uniswap Labs introduced protocols that provided real utility to the crypto economy. Even after speculative frenzies subsided, these tokens retained potential value due to their association with functional and valuable services.
However, Kremer pointed out that meme coins possess a more destructive dynamic. He highlighted that insiders or cartels create tokens with names like supercumrocket69, heavily promote them, and attract retail investors to buy these 'revolutionary' new assets. Once the prices surge, insiders sell off their holdings, leaving the tokens devoid of real value or utility. Kremer emphasized that this entire process is a zero-sum game, where value is not only redistributed but also destroyed.
