Is X deliberately killing memecoins?
A funny thing happened on the way to a crypto friendly presidency: degenerate gamblers launching tens of thousands of memecoins and disrupting the fabric of crypto twitter (CT).
Memecoins which are breaking out of the bonding curve (scaling past a certain level of success) have fallen off a cliff.
Meanwhile, the entire crypto market seems to have grown deathly ill. Major weekend pumps have fallen away. Even on very good news.
Over the weekend the president announced the crypto reserve would host alt coins like Ada, XRP and Sol. But even that pump was rapidly retraced.
Crypto is sick? But why? We’ll — When Pumpfun is 1/3rd of volume that creates a problem. Probably more including indirect spill over effects/
I think an algorithm change is more aggressively filtering memecoin promotion on X and it is causing the entire market to get sick.
Pumpfun was also notoriously extractive — continually exiting all their gains to Kraken. Taking liquidity out of the market.
All combined — Pumpfun and the meme ecosystem began to act like a drag net fishing operation which was dredging the bottom then canning all the dolphins along with the fish.
Perhaps the higher powers felt this had gone too far.
My own account was soft suspended. I can’t get in despite multiple rounds with support (who have stopped answering).
Other accounts who have touched memes are also flagged
I think the party may be over. But why? Isn’t this the pro crypto admin? Well to be honest memecoins were a little extractive. More than a little.
They were also destroying the ability for venture capitalists and builders to create long term Value building projects. All liquidity in the market was chasing the pump of the minute.
If I were a powerful Silicon Valley VC I would be very concerned that the market is being permanently damaged. No one in the serious money classes trying to fund real projects can survive when even projects like BeraChain which in theory did all the right things launch and drop like memes:
One sad reality may simply be that Memes on X may be over. No more fun runners. No getting rich overnight.
Back to VC coins.
But what gives? Even the president launched a coin? What is good for me is not good for thee.
This is the reality of platform risk. Crypto Twitter (CT) has long been a single point of failure for the entire crypto market.
Ethereum tried to diversify away with Farcaster with limited success.
Right now all of crypto may be reliant on a platform which really can’t tolerate the antics we have been used to. Will this completely destroy crypto?
I imagine what might be happening is a crackdown on bot activity and accounts of shippers in the aftermath of the Argentina Libra disaster.
Either way — crypto is not happy right now.
