It always comes across to me as comical when I see so called “X Analysts” drop several tweets on “memecoin rugpulls” calling out this handle and that handle for organizing several memecoin scams and robbing investors, and so on.
Trust me, I've seen countless stories on this matter and it only gets funnier.
First of, if this isn't a case of “taking presale funds but not launching and distributing the tokens” nothing else happening with memecoins deserve to be given any attention.
That is the only time I personally believe project developers or heads should be brought to justice, otherwise, shit, there's only a fair game here.
Ponzi Schemes, Recognized But Welcomed
Before Ponzi Schemes became popular, I considered it a crime, but after watching this shit literally gain popularity and was rather welcomed, I knew then for a fact that humans are simply walking nutcases.
Get this.
A new investment service is launched, you invest $100 and earn between $0.45 to $3.00 for clicking links and watching videos and when you invite your friends, you get a $50 referral bonus.
It is obvious to everyone coming that this service/platform has no incentive whatsoever to itself to pay users that much to click links and watch videos. There's no valued audience or advertisers to fund such practice for example, so most of the tasks rewards are from registration cost obtained from new sign ups.
As such, everyone can tell that the reward system isn't sustainable as it requires constant new sign ups and that can only be maintained for so long until it all gets closed down and last minute users lose money while the early birds wake away with their invested capital and a lot more.
You find these humans even brag about this, and will literally let their referrals know that it's a Ponzi and it's best to get in early.
Classic greedy bastards right?
Memecoins are the Ponzi Schemes Of Crypto
Similar to traditional Ponzi Schemes, there's a start up risk - which is your investment.
Also similar to traditional Ponzi schemes, the early birds always make the most gains. Of course, there's a bit of a twist here where the most profitable investors are those lucky enough to not sell too soon before major price gains.
Again, similar to Ponzi Schemes, everyone investing is fully aware that some of them will lose money, which effectively becomes the gains of the others, so the bagholders are the late comers losing money as they are being dumped on.
Ponzi after Ponzi keeps getting released with different marketing ploys to up the returns attained.
This, in its entirety, is bad publicity for crypto. People really don't care at the end of the day because greed is working. It would be a waste of sympathy to pity anyone who gets rekt investing in memecoins as it's a known possibility, it's either it was them or someone else, so not wanting to be the loser is effectively looking to have another person get rekt for you to get rich.
So why should we support any legal actions whatsoever for losers when it's always been a well planned out event that everyone gets the memo?
That said, at the end of the day, memecoins, even in their nature of casting a bad image on the cryptocurrency ecosystem, are contributing to its economy via network fees and attracting fresh liquidity and value.
The volumes on these memecoins are really insane and the fact that they happen on dexes first makes it most appealing.
Fresh liquidity is entering the market to capitalize on this practice day in and day out and that's evidently a reason we can't totally dismiss their existence.
I mean, why should a memecoin pull better marketing numbers than a legitimate project?
Gotta fire everyone in the marketing unit ASAP.