Memecoins Have an Important Role in Onboarding People into the Crypto, but the Bumper Returns Might Not Last, Say Execs

In an Aug. 13 panel discussion at Canada's Futurists conference covered by Cointelegraph, Jelena Djuric, CEO of Appchain Noble, said that while the memecoin season is still marching forward, she is skeptical of their longevity in the market.

Memecoins have played a role in introducing people to cryptocurrency, but the massive gains that have attracted new investors may not continue, according to crypto executives.

During an Aug. 13 panel discussion at Canada’s Futurists conference covered by Cointelegraph, Jelena Djuric, CEO of Appchain Noble, said that while the memecoin season is still rolling, she questions their long-term viability in the market.

CoinGecko lists 1,673 memecoins as of Aug. 14, with a collective market capitalization of approximately $41 billion.

However, Djuric views memecoins as merely the latest phase of “retail mania” in crypto. According to Cointelegraph, she stated:

“The first phase was obviously ICOs in 2017. This was the first opportunity for retail to make significant returns.”

The boom in initial coin offerings (ICOs) began in 2017 with an estimated $4.9 billion being raised. This figure had increased to $33.4 billion by 2018, but it had decreased to just over $370 million by 2019.

Djuric cites Nonfungible tokens (NFTs) as another instance. In 2020, NFTs experienced a surge in popularity, which was accompanied by soaring prices.

On Feb. 21, 2021, Digital artist Mike Winkelmann, also known as Beeple, made history when his NFT art “Everydays: The First 5000 Days” sold for over $69 million. According to CoinGecko, its price is currently listed as 6.99 Ether (ETH), or roughly $19,009.

“I think memecoins came in at the perfect time, both when we had very low gas fees on Solana, and the Solana chain kind of showed its ability to facilitate this really high-volatility trading,” Djuric said.

Crypto platforms should embrace memecoins

It is still unknown whether memecoins will follow the same path as ICOs and NFTs. Dean Skurka, president of asset management firm WonderFi, believes that platforms should embrace them while they are still popular.

“I think there’s a clear trend here where there’s a real social element, a community element, with retail trading in general, certainly with memecoins as well,” he said, according to Cointelegraph. And I think it’s important for platforms like ours to embrace it.”

According to Skurka, embracing trends as they emerge and facilitating discussions around them presents a valuable opportunity to integrate more individuals into the ecosystem and potentially retain their interest.

“Not every memecoin, investment or speculative investment is going to end up in a win, but it really brings people into the ecosystem,” he said.

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