The future of memecoins is under scrutiny after the recent $4 billion LIBRA scandal linked to Argentine President Javier Milei.
Nic Carter, a partner at Castle Island Ventures, has declared that the “memecoin era is unquestionably over,” citing deep-rooted corruption in the sector.
However, Coinbase CEO Brian Armstrong has taken a different stance, urging market participants to remain open to the evolving role of memecoins.
Carter: “Memecoins Are Cooked”
In a Feb. 19 post on X(Twitter), Carter argued that memecoins thrived on the illusion of fair launches, giving everyday investors an equal shot at profits.
He claimed that this premise has now been exposed as false, with insiders manipulating prelaunch deals, using automated trading tools, and rigging the system in their favour.
“Memecoins are cooked. There will still be launches and some winners, but the meta is done,” Carter wrote. He pointed to the LIBRA scandal as proof that the memecoin sector is dominated by insiders who profit at the expense of retail investors.
He also warned of potential regulatory action, stating that even though memecoins may not qualify as securities, trading on insider information remains illegal.
According to Carter, blockchain’s transparency has left behind a trail of evidence that could lead to legal consequences for those involved in market manipulation.
Carter on the Crypto Industry
Beyond memecoins, Carter highlighted a shift in the crypto landscape. He noted that projects are now opting for more reasonable pre-launch valuations, a move that could attract long-term investors rather than speculative traders.
Additionally, he predicted that crowdfunding platforms like Echo, which enforce accreditation and KYC checks, would gain traction as a more transparent way to raise funds.
Despite his bleak outlook on memecoins, Carter remained optimistic about the future of crypto. He pointed to the growing stablecoin sector and the potential for DeFi projects to generate real revenue.
He believes the industry is maturing, moving away from speculative hype toward projects with tangible utility.
Coinbase CEO Defends Memecoins
While Carter dismissed memecoins, Coinbase CEO Brian Armstrong took a different approach. In a recent statement, Armstrong argued that memecoins have played a role in crypto’s evolution and could continue to do so.
“Memecoins have been around since the beginning—Dogecoin is still one of the most popular coins. Even Bitcoin is somewhat of a memecoin,” he stated.
Armstrong compared memecoins to early internet trends, suggesting that what may seem like a joke today could evolve into something valuable over time.
He also emphasized Coinbase’s commitment to free-market principles, stating that as long as memecoins are legal, users should have the freedom to trade them.
However, he acknowledged that scams and low-quality tokens exist and stressed the importance of providing investors with reliable information rather than outright censorship.
Regulators Weigh In on Memecoins
As the debate over memecoins continues, regulators are also stepping in. U.S. SEC Commissioner Hester Peirce recently suggested that many memecoins may not fall under the agency’s jurisdiction.
Peirce, who leads the SEC’s crypto task force, noted that classifying memecoins depends on “facts and circumstances.” This statement indicates that while some tokens might be subject to securities laws, others may not be regulated in the same way.
The Future of Memecoins: Boom or Bust?
The LIBRA scandal has intensified the discussion around memecoins, raising concerns about fairness, regulation, and investor protection. While Carter believes the sector is fundamentally broken, Armstrong and Peirce suggest that memecoins still have a place in the crypto landscape.
Moving forward, the memecoin market could see increased scrutiny from regulators, making it harder for bad actors to exploit the system.
Also Read: Whales Dominate 94% Of $TRUMP And $MELANIA Memecoins With 40 Wallets Under Their Control, Report