Pump.Fun Co-founder: Altcoins are Memes with Fancy Names

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Pump.fun co-founder Alon Cohen thinks most altcoins are just like memecoins, but with fancier names and more money from venture capitalists. He says these investors often use retail traders as a way to make more money.

Cohen said that Pump.fun was around before the altcoin market started to go down in April 2024. He thinks people are still scared from the last time they lost money and are not ready to invest in the “future of finance” yet.

Cohen believes that most people just want to have fun and make a little money while trading, and they don’t really care about the fancy technology behind altcoins.

This shows that there is a growing disagreement between people who invest in altcoins because they believe in their technology and those who just want to make money by buying and selling them.

Read more$70 million in 24 hours: Can Ethereum crack $4,000 thanks to whales?

Are memes to blame for the price drop of altcoins?

Pump.fun started in January 2024, when memecoins were already very popular on social media platforms like X (formerly Twitter), Reddit, Telegram, and Discord.

The Total3 indicator on TradingView shows that the total value of all altcoins reached about $788 billion in March 2024. But then, in April 2024, the prices of altcoins started to go down and didn’t go back up until November 2024, when the cryptocurrency market had a big price increase because of the re-election of Donald Trump in the United States.

Read moreBitcoin halving could be a ‘sell-the-news’ event, at least for a few months

Many people think there are too many different cryptocurrencies now, and they are all competing for attention and money from investors.

Even though there are too many altcoins, the ones with support from big investors tend to do better than those without. This is because big investors buy these digital assets on the open market, which helps keep their prices high, according to Yat Siu, co-founder of Animoca Brands.

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2025-02-09 20:19