Messari Data Engineer: The Meme coin craze is a zero-sum game, where value will not only be redistributed but also destroyed

Messari data engineer Mike Kremer stated that Meme coins have been the "most extractive" crypto phenomenon since the ICO craze in 2017. He believes that while speculative bubbles and assets have always been part of the crypto ecosystem, retail investors' pursuit of the latest hot spots in crypto always leaves some residual value. Kremer said: "During DeFi season, projects like Uniswap Labs launched protocols that provide real utility for the crypto economy. When speculative frenzy subsides, these tokens still have potential value because they are tied to functional and valuable services." However, he pointed out that Meme coins have a "more destructive drive". "Here, insiders or cartels create tokens like supercumrocket69, heavily promote them and attract retail investors to compete for these 'revolutionary' new assets." He added that once prices rise, insiders will dump their holdings causing tokens to lose their real value or utility. The whole process is a zero-sum game where not only is value redistributed but also destroyed.