Memecoin Market Crashes 90% After Scandals, but Revival Is Likely
Memecoins, the once-thriving crypto sector driven by viral tokens, have seen a sharp decline following a wave of failed launches and insider cashouts.
CoinGecko co-founder Bobby Ong reports that interest in the sector has plummeted, particularly after the collapse of Libra (LIBRA)—a token linked to Argentine President Javier Milei, which wiped out 94% of its value within hours.
CoinGecko: memecoins are likely dead for now after the launch of #TRUMP and #LIBRA, but they'll be back and always seasonal. cointelegraph #memecoin #CryptoNews #DeFi #LINK #BTC https://t.co/HoWu0agv1o
— PANDA (@ethos_scan) March 7, 2025
Pump.fun’s token launches dropped over 90% since February’s peak.
Trading volume on Pump.fun fell 63% between January and February.
Total memecoin market cap shrank from $124 billion (Dec. 5) to $54 billion.
The downturn starkly contrasts with the January TRUMP memecoin launch, which fueled $3.3 billion in weekly trading volume. However, after “Libragate,” investor confidence in fair launches eroded as on-chain data exposed coordinated insider profits.
How ‘Libragate’ Triggered a Market Collapse
LIBRA’s launch was widely believed to be a community-driven token, but insiders allegedly withdrew $107 million in profits before retail investors could react. This event shattered the illusion of fair play in memecoins, exposing hidden “cabal-style” pre-launch deals.
LIBRA’s value plummeted 94% within hours of launch.
Insiders cashed out $107 million, leaving retail investors at a loss.
Memecoin speculation sharply declined as trust eroded.
This wasn’t the first red flag in the memecoin sector. Earlier, Pump.fun’s top-ranked tokens were accused of being controlled by a small group of insiders, further damaging sentiment. The impact was immediate—new token launches and overall activity on the platform collapsed by over 90%.
Memecoins are likely dead for now, but they'll be back: CoinGecko
According to CoinGecko, the popularity of memecoins has significantly declined following a boom initiated by the launch of Donald Trump's TRUMP memecoin on… via @CosmicMetaXhttps://t.co/GxFDX3PEXn
— Cosmic Meta Digital (@CosmicMetaX) March 7, 2025
Memecoins Will Return, but Few Will Survive
Despite the current downturn, Ong believes memecoins are a seasonal asset class that will make a comeback. However, he warns that the market could follow an “extreme power law,” where 99.99% of tokens fail while a few dominant ones endure.
DOGE, SHIB, and BONK have survived multiple market cycles.
Investors are shifting attention back to Bitcoin (BTC) and Ethereum (ETH).
On-chain analysts predict a healthier crypto cycle with reduced memecoin speculation.
The memecoin market’s recent implosion highlights the risks of speculative assets with little fundamental backing. While new tokens may emerge in future market cycles, Ong advises that only a select few will achieve long-term relevance.
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