Memecoin culture and the way these tokens have been circulated have drawn scrutiny from several voices within the crypto community itself. Frank DeGods, a prominent figure in the NFT communities, criticized crypto traders for buying and selling memecoins instantly. It is a very memic culture that people do not often hold the tokens for the long term, and the NFT leader is criticizing this aspect.
Solana memecoins see the quickest flipping
When Frank DeGods talked about short holds on memecoins, he might have specifically denoted Solana memecoins, as their Pump.fun token is one of the largest launchpads with a huge number of memecoins. And, the reason for the short hold times is due to “the exponential overproduction of tokens.”
On memecoin launchpads like Pum.fun, it is extremely easy to create new tokens. As the constant flood of new coins increases, traders know the fact that each coin persists in the market following a hype that fades away quickly, and another set of coins emerges with the same hype. This is the core reason why traders do not usually hold memecoins for long.
Short-term holding can also affect liquidity
Yes, when traders hold on to memecoins for a short term, it can eventually lower the liquidity, meaning less number of people buy and sell tokens. When there are a high number of token launches, the liquidity gets spread across different coins, and it becomes very thin.
Frank DeGods’s analysis also proves that people should not come to trading only to make money; instead, they should watch how the whole process works and analyze what’s happening in the market.
Memecoins have their own unique world
It is quite a well-known and surprising fact that memcoins launch so quickly, and we can even see new coins launching every 2-3 minutes. This huge rise in memecoins has also led to increased rug pulls, pump-and-dump schemes, and several other scammy moves. For traders, holding Solana meme tokens even for 24 hours can feel exhausting, making them jump from one memecoin to another to find profits. This quench arises from exponential token launches on memecoin launchpads, which Frank DeGods views as an unpleasant trend.
