Tesla CEO Elon Musk has made a candid assessment of the speculative cryptocurrency field, comparing meme coins to a "casino".
While acknowledging the popularity of meme coins, he warned investors not to invest their entire assets in such high-risk assets.
Elon Musk Highlights High Interest in Meme Coins
In a recent episode of the Joe Rogan Experience podcast, Musk did not hold back his evaluation of meme coins. He suggested that expecting to profit from Meme Coins is as unrealistic as hoping to win at a casino.
"It's foolish to expect to make money from Meme Coins. You can't win with Meme Coins. Don't invest your entire assets in Meme Coins," he said.
However, Musk has played a significant role in the Meme Coin frenzy. His social media posts have triggered explosive rallies on multiple occasions, and Dogecoin (DOGE) has surged several times after his mentions.
His recent reference to "Doge Father" triggered triple-digit gains in related tokens. Similarly, when Musk changed his user name to "Kekius Maximus" and "Harry Boltz", it sparked price increases in tokens.
This duality, with Musk acting as both a catalyst and a critic, lends more weight to his casino comparison, especially in the context of unstable data on the success potential of Meme Coins.
Pump.fun Success Rate Declines... Is Meme Coin Hype Fading?
The Meme Coin launchpad Pump.fun on Solana is an example. According to Dune data, the total number of tokens created on Pump.fun has been steadily declining since late January. The number of tokens graduating to Raydium, a decentralized exchange that provides liquidity and wider exposure, is also decreasing.
According to one analyst, in January, 24,008 tokens successfully reached Raydium. By the end of February, this number had plummeted to 11,532, indicating a significant slowdown.
In the last 24 hours alone, 29,499 tokens were created, but only about 0.80%, or 235, successfully graduated. The weekly graduation rate was 1.08%, meaning a very low proportion of launched tokens made it to Raydium.
Even for tokens that successfully graduated, achieving significant valuations is an even rarer occurrence. According to CoinGecko data, only a tiny fraction of Meme Coins have reached a $1 billion market cap. Out of the over 820,000 tokens created since Pump.fun's inception, not a single one has reached a $1 billion market cap.
Only 4 have crossed the $100 million threshold: Fartcoin (FARTCOIN) at $330 million, AI Rig Complex (ARC) at $230 million, Peanut the Squirrel (PNUT) at $219 million, and Act I The AI Prophecy (ACT) at $185 million.
Meanwhile, Pump.fun's user activity also shows signs of fatigue. According to the latest data, active users and new users have declined sharply. This suggests that the speculative frenzy that once defined Meme Coin trading is starting to fade.
