“Memecoins are unquestionably over.”
Nic Carter, an analyst and founder of Castle Island Ventures, stated that the memecoin trade is effectively over, as insider dominance, bot exploitation, and prelaunch deals have made it an unfair and extractive market.
Why it matters: Understanding Carter’s explanation could help crypto traders, especially low-cap coin investors, adapt as the memecoin trade fades and possibly shift focus to fundamentally strong tokens.
Key Details
Carter’s statement comes in the wake of the Solana meme token $LIBRA scandal, where 95% of $LIBRA’s supply was allocated to team members and early investors, sparking concerns over insider trading and market manipulation.
- He added that insider trading and unfair launches have eroded trust in the memecoin space, shifting the crypto market toward regulatory scrutiny, fairer token launches, and a focus on projects with real utility and sustainable financial models.
Key Points From Nic Carter
- Memecoins were initially seen as “fair launch” opportunities but have become rigged games controlled by insiders.
- Scandals like $LIBRA’s billion-dollar launch and bot manipulation have shattered the illusion of fairness.
- Regulatory scrutiny over insider trading in crypto is expected to increase.
- Carter emphasized that the notion that memecoins are exempt from securities laws does not shield bad actors from legal action.
- Investors and developers are shifting toward tokens with actual utility and sustainable value.
- Traditional L1, L2, and DeFi tokens are moving away from high, fully diluted valuations and low-float models.
- Platforms enforcing accreditation and “Know Your Customer” processes will gain traction for prelaunch token sales.
- Carter noted that the decline of memecoins represents industry maturation rather than a loss.
- However: While memecoins will still exist, Carter said mass market interest will wane as trust erodes and legal scrutiny increases.
Key Quote
“Memecoins are unquestionably over. (Obviously, they won’t fully disappear, but the trade is gone). Reason being, the entire premise of memecoins was that they were “fair launch” opportunities where John Q Retail had just as good a shot at making money as the funds and VCs. This was the entire substance of the claim made by the memecoin boosters. The coins had no purpose beyond their launch mechanic. They weren’t sold as a product in their own right but rather as an alternative to high FDV VC-backed coins. Those have their own problems, of course, but their issues did not make memecoins any more worthwhile. And the memecoin trade was entirely based on a claim that was ultimately exposed as a lie—that the casino was at least fair.”
Nic Carter, Founder, Castle Island Ventures
What to Watch: There could be increased regulatory enforcement on insider trading in crypto, as well as a rise in high-quality token launches with fairer distribution models.
The Bottom Line: As Carter emphasized, the decline of the memecoin era signals a maturing crypto industry, where long-term value and sustainable tokenomics take precedence over short-term speculation.
Worth reading: In an interview last year, local thought leaders said Filipinos embrace high-risk crypto investments, such as meme coins, due to a combination of natural risk-taking tendencies, increased access to educational resources, social influence from peers and influencers, and a gambling culture that fuels enthusiasm for low-cap tokens.
This article is published on BitPinas: The Memecoin Era is Over, Venture Capital Firm Founder Declares
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