The explosive growth of meme coins like BONK and WIF on the Solana blockchain is raising concerns about the long-term sustainability and credibility of the platform. According to crypto analyst Crypto Koryo, the relentless launch of new meme tokens is destroying the SOL ecosystem and tarnishing the image of Solana as a serious contender to Ethereum.
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Dilution and Retail Losses
Koryo points to data showing an alarming disconnect between the surging number of new meme coin listings on the Solana decentralized exchange Orca and the declining overall trading volumes on the network. This trend, exacerbated by the bearish market conditions, suggests that the meme coin frenzy is leading to oversaturation and dilution, with limited trading activity spread thin across an ever-increasing number of tokens.
The analyst argues that while celebrities and promoters are profiting handsomely from the meme coin mania, retail investors are likely bearing the brunt of the losses. “It means celebrities and those promoting these meme coins are making a lot of money very quickly, but more and more retail [investors are] probably losing money,” Koryo warns.
Undermining Solana’s Reputation
Koryo raises concerns that the proliferation of meme coins and the associated risks of rug pulls and Ponzi schemes could severely damage Solana’s reputation as a credible blockchain platform. “Solana will become (is becoming) a house full of sh*t and ponzis and rug pulls,” the analyst cautions, questioning whether this is the desired path for a network aiming to compete with Ethereum.
The analyst also criticizes tools like “pumpdotfun” and “degendotfund,” which are perceived as exacerbating the problem by fueling the meme coin craze.
Threat to the Meme Coin Narrative
Koryo argues that the oversaturation of meme coins on Solana could ultimately undermine the broader meme coin narrative. With an overwhelming number of choices, retail investors may become disillusioned and lose interest, as predicted by Barry Schwartz’s “The Paradox of Choice: Why More Is Less.”
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Show more +Consequently, the analyst suggests that established meme coins on Ethereum, like PEPE, may prove to be more attractive long-term investments compared to their Solana counterparts like WIF and BONK.
To preserve the integrity of the industry, Koryo calls for a halt to the continuous creation of new meme coins on Solana, urging the community to “pls stop creating new meme coins on Solana.”
As the meme coin craze shows no signs of abating, the concerns raised by Crypto Koryo underscore the potential risks of unchecked proliferation and the need for a more sustainable and responsible approach to preserving the credibility and longevity of the Solana ecosystem.
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