On October 31, 2024, Charles Hoskinson, the visionary founder of Cardano, delivered a powerful critique of meme coins during a live stream from Colorado. His address was focused on examining the current state of the cryptocurrency market, with a sharp lens on the rise and perceived shortcomings of meme-based cryptocurrencies.
Cardano vs. Meme Coins: A Stark Contrast
Hoskinson did not hold back in his assessment, describing meme coins as fundamentally lacking in value. He emphasized, “Meme coins, they have no value, they never will have value, they will never ever have value, stop, stop thinking they will you degenerates. Grow the hell up.” This statement highlighted his belief that these cryptocurrencies are speculative and inherently unstable.
The Speculative Nature of Meme Coins
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Delving deeper, Hoskinson elaborated on the speculative nature of meme coins, which are often subject to pump-and-dump schemes. He questioned, “What do you honestly expect? What do you expect? What is the outcome of this game? You buy a token and the token goes up a little bit and a whole bunch of other people rush in and the token goes up and then what happens? People dump on you. That’s how that game works. It’s always worked that way for meme coins, always will work that way for meme coins.”
The Role of Social Media
Hoskinson also criticized the role of social media in promoting meme coins, highlighting the lack of accountability among so-called experts and the ease with which these coins can be launched online. He stated, “They have no utility. There’s no culture behind somebody taking a picture of me and turning it into a meme coin for the purposes of a pump and dump.”
Popularity Amidst Boredom
The Cardano founder pondered the popularity of meme coins in recent times, attributing it to boredom during a prolonged bear market. “We all know that these things [meme coins] have no value. There’s no utility behind them. When they lose their luster, they go to zero. […] The reason why meme coins have any popularity right now is people are bored […]. We’ve gone through three years of a brutal bear market. It’s been horrible and so people got to do something with all this crypto wealth,” Hoskinson elaborated.
Cardano: A Foundation for the Future
In contrast to meme coins, Hoskinson praised the foundational strengths of Cardano, highlighting its on-chain governance, smart contract capabilities, and a robust network with 1.4 million users. “Look at something like Cardano. There’s an on-chain government. There’s a smart contracting stack. There is a network that has 1.4 million users inside of it that enables you to store information in a secure way. It’s been running for seven years straight. You can use it as the foundation to rebuild the social fabric of society itself,” he emphasized.
A Call for Meaningful Engagement
Beyond the cryptocurrency realm, Hoskinson touched on broader societal issues, expressing his frustration with the current state of public discourse and accountability. He linked the rise of meme coins to societal distractions, suggesting that superficial discussions contribute to speculative and unproductive financial activities.
Concluding Thoughts: Focus on Long-term Utility
Hoskinson concluded with a call to the crypto community to prioritize meaningful engagement and responsible investment. He urged users to focus on the tangible utility and long-term potential of blockchain technologies, rather than succumbing to the fleeting hype of meme coins. “If you can do that, you’re a true crypto user, a true one because you’re worthy of being your own bank and being in charge of your own life,” he stated, reinforcing the ethos of self-sovereignty that underpins Cardano’s mission.
At the time of his address, Cardano’s ADA was trading at $0.3468.
