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CryptoQuant CEO Warns Against Meme Coin Hype: A Threat to Industry Progress?

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The incident involving the Solana-based Slerf (SLERF) meme coin’s $10-million bungle has sparked intense speculation. While the team said that the action was a mindless misclick, others speculate that it might have been a daring marketing stunt.

Regardless of the true nature of the event, it has undeniably garnered significant attention across social media platforms and within the market. The intrigue surrounding the incident has only served to heighten interest in the project, as well as the entire meme coin market in general.

Not everyone views this development positively. Ki Young Ju from CryptoQuant, for instance, said that meme coins have a detrimental impact on the crypto industry.

Meme Coin Madness or Legitimate Innovation

Taking to X (formerly Twitter), Ju expressed frustration, noting that billion-dollar-cap meme coins often overshadow the efforts of hardworking teams dedicated to developing legitimate products that could drive industry advancement.

Ju argued that the chase for easy money through meme coins doesn’t contribute to overall progress within the industry, drawing parallels to the 2018 ICO burst, which demonstrated the limitations of such approaches.

While some argue that meme coins serve as a global lottery system attracting new users to crypto, Ju questioned whether the risk of financial loss is worth entering the crypto space, especially considering the lack of societal value provided by many “shitcoins” from the 2018 ICO era, which essentially operated like a casino.

Ju even went on to suggest that those who advocate for meme coins may lack experience with the negative consequences of easy money. Comparing the situation to the 2018 ICOs, the CryptoQuant co-founder acknowledged that while ICOs attracted new investors, they at least made attempts to develop products.

In contrast, modern crypto developers are more inclined to create meme coins rather than engage in meaningful product development, a trend that the exec considered even worse than the proliferation of “shitcoin” ICOs.

Slerf’s Bungled Launch

Slerf, a meme coin featuring a sloth theme and operating on the Solana network, garnered $10 million in a presale event held on March 18th. This token is one of many that have recently emerged through presales and fundraising sales conducted before their official launch, following the recent success of Book of Meme (BOME) earlier this month.

However, the project’s developer lost all the funds received after accidentally sending the tokens to a burn address, which is an address not under anyone’s control.

Despite this, the project amassed more than $1.80 billion in trading volume over the past day and was currently trading near $1.

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