Meme Coin Market Plunges... Investor Confidence Shaken, Regulatory Crackdown Looms

# Meme Coin Market Sees Sharp Downturn Amid Failed Launches and Fraud Scandals The meme coin market is witnessing a precipitous decline. After experiencing a surge at the beginning of the year, the market has lost investor confidence due to failed new launches and a series of large-scale scams known as ‘rug pulls.’ CoinGecko co-founder Bobby Ong analyzed in a recent report that the activity in the meme coin market has sharply decreased. In his March report, Ong highlighted the shock delivered to the market by the failure of the 'Libra' token, associated with the President of Argentina. The collapse of this token impacted major platforms that were facilitating the launch of new meme coins, leading to a significant decrease in new token issuances in the following period. # From Euphoria to Collapse Early this year, the meme coin market reached its peak following the emergence of tokens themed around the U.S. President and his wife. These tokens gained immense popularity in a short period; however, Ong assessed that this was the beginning of the market's decline. At that time, liquidity began to dry up, and investor interest in meme coins waned progressively. Especially notable was the explosive increase in trading volume on these platforms immediately after the token launches, which then plummeted swiftly. Weekly trading volume hit its peak in mid-January but saw a sharp decline within just a month. The overall market capitalization of meme coins also saw a dramatic reduction after initially reaching high levels. Ong diagnosed, “The pinnacle of the meme coin market collapsed with the failure of Libra.” He added, “Insiders withdrew substantial funds within hours, causing the collapse of Libra and thereby delivering a significant blow to the entire meme coin market.” # Will Meme Coins Disappear? “Likely to Resurface Periodically” Despite the sharp downturn, Ong predicts that meme coins will not disappear entirely. He stated that meme coins have a “trend-based nature” and will likely follow a pattern of gaining popularity at certain times and then fading away. Historically, most meme coins have ended as short-lived trends, but some have endured and maintained a consistent presence in the market. As the meme coin market declines, investors appear to be shifting towards safer assets. Analysts observe a clear tendency for investors to return to major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH). Ong remarked, “Most meme coins will lose their value over time,” but he noted that projects like Dogecoin (DOGE), Shiba Inu (SHIB), and Bonk (BONK) have survived thanks to their strong community-based support. He emphasized, “These coins have weathered various market downturns, sustained by their dedicated communities.” ---