A new report demonstrates their incredible profitability through the first half of 2025. This finding adds fuel to the fire of chaos already surrounding the crypto scene. Headlines are blaring with news of meme coins crushing the rest of the crypto space. So first, let’s take a step back and inject a hearty measure of skepticism into the picture.

Profitability Or Just Dumb Luck?

NFTEvening just published a study forecasting that meme coins will take over the crypto industry in early 2025. They forecast a stratospheric average P&L of +33.08%. Real World Assets (RWA), the touted shield of robustness, trailed deep behind with a -$Pnl. On the surface, that appears to violate every common sense. Numbers can be deceiving.

Here's where the "unexpected connection" comes in: Remember the dot-com boom? All it took for these companies was an app and a marketable name to have their valuations inflate overnight. The technology was indeed revolutionary, it was just the market that jumped the gun. Are meme coins experiencing a similar phenomenon? Are we confusing novelty with genuine value?

Now, to be clear, I’m not saying that all meme coins are worthless. What I’m suggesting here is that we need to move past the click-bait PnL and Nielsen’s headlines and start asking the hard questions. The study’s methodology, though apparently rigorous, deserves closer inspection. How is "profitability" defined exactly? Are we referring to long-term improvements, or temporary surges fueled by excitement and speculation? How are the profits being shared? Are they going to the people most responsible for the increase in profits, or just a few early adopters and whales?

The Pump And Dump Reality

Even the research paper admits to the very real high meme coin death rate. This year, 2024, 97% of meme coins disappeared. At the same time, the daily adoption rate soared, peaking at over 36,000 new tokens created per day. Let's not sugarcoat it: These figures scream "pump and dump scheme."

This isn’t simply a story about lost dollars, it’s about the moral consequences. Are we all really okay with a financial system where manipulation and hype are the only true determinants of value. And are we really proud of preying on the hopes and dreams of young, unsophisticated investors. A lot of these creators are just young kids, seduced by the lure of fast fortune.

Think about it: A savvy influencer promotes a new meme coin. Hordes of speculators swarm into the market, bidding up the price. The influencer and early insiders walk away with profits while the public gets left holding the bag. This is not decentralization, this is just a digital-age rehash of the same old Wall Street hustle. And it's infuriating.

Regulation Or The Wild West?

The issue of how to regulate them is a sensitive one. On the one hand, I am a huge proponent of decentralized innovation, of deploying the liberating aspects of technology that put power in the hands of people. On the other hand, I'm not naive. Unregulated gambling and market manipulation don’t just end in the S&P 500—it has devastating impacts.

A strict libertarian approach would advocate for a full do-nothing approach, allowing the market to bear all responsibility. Is that really the best use of taxpayer dollars? We can’t in good conscience allow people to become financially ruined on our watch. Without guarding against market manipulation, these meme coins are little more than digital whoopee cushions!

I don't think so. We expect clear and intelligent regulations that secure investor protections while not hampering innovation. This could include:

  • Increased transparency: Requiring meme coin creators to disclose their identities and financial interests.
  • Stricter listing requirements: Ensuring that exchanges perform due diligence before listing new meme coins.
  • Educational initiatives: Empowering investors with the knowledge and tools they need to make informed decisions.

This is not censorship, this is making sure that we have a level playing field and protecting our most vulnerable members from the predatory practices. What we require is a collaborative approach that promotes innovation and creativity as well as addresses the risks. Think of it like construction of median barriers on a highway. They may not keep you from speeding, but they will keep you from going over the edge.

Meme coins have the potential to serve as an entry point for young people to engage with the worlds of finance and technology. But only if they put them to use with a significant degree of caution, skepticism, and good old-fashioned risk management. We shouldn’t allow the hype around AI to obscure the realities beneath the surface. The future of finance depends on it.

Are you willing to risk your financial future on a digital doge?