Memecoin’s era as an alleged fair trading opportunity is “undoubtedly past” according to Nic Carter, a partner at Castle Island Ventures.
In a post on X, Carter claimed that Memecoins – tokens with little to no utility beyond speculative trade – was originally attractive because they seemed to offer an even game field for retail investors. However, the market with recent scandals such as weight coins is overtaken by insiders, benefits and bot -driven trade, leaving everyday traders for a disadvantage.
“The whole prerequisite for Memecoins was that they were” fair launch “options, where retail had as good shots as foundations and VCs,” Carter wrote. “It was exposed as a lie – the casino was not fair.”
Carter pointed to the launch of Milei’s weight coins, which opened on a $ 1 billion market capital before briefly spit out to $ 4 billion, as an example of how insiders now dominate the market. Such unreasonable launches, he said, has transformed Memecoins into a casino where the house overwhelming wins.
Read more: Weight Token’s co -creator claimed he paid the Argentine President Milei’s sister
While Carter believes the recent trade that started since US President Donald Trump started his Trump Memecoin, he noticed, the industry will not disappear. Rather, there will still be a few new token launches and some winners, but “the meta is done.”
As confidence in Memecoin fades, Carter expects regulators to intervene against insider trading in the sector. “Just because Memecoins are probably not securities does not mean that there is no responsibility associated with trade in interior information,” he said, predicting that blockchain transaction stories will lead to future law enforcement measures.
‘What maturation looks’
Looking ahead, Carter thinks the market will change against more sustainable and fair token launches.
Valuations with high launches have become less attractive and projects adapt to by offering lower initial valuations to attract buyers. Platforms like Echo, which enforce accreditation and KYC, are likely to gain popularity for bias fundraising, which helps projects to distribute tokens more fair.
Meanwhile, Carter expects increased legitimacy in defi -tokens. With SEC, which prepares clearer rules for the issuance of token, he sees a future where the tokens can openly generate and return capital to the users.
“Trade over the next few years is simply to assess the basic elements of these symbols and buy those who deal with reasonable valuations in relation to their real or implied cash flows,” he said.
While some dealers may regret the end of Memecoin Gold Rush, Carter claims that the market is simply mature. “The pain of disillusionment is real, but to free us from the cancerous Memecoin sector – which was in afterwards tremendously unreasonable – is a good development in general,” he wrote.
Read more: Will Argentine President Mileis Krypto ‘Failure’ be a death for Memecoin -Dille?
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