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Ruholamin Haqshanas
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Ruholamin Haqshanas
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Investor enthusiasm for meme coins has significantly declined following a string of failed launches and rug pulls, according to CoinGecko founder Bobby Ong.
In a March 6 report, Ong pointed to a sharp drop in activity on token launchpad Pump.fun after the controversial Libra (LIBRA) rug pull.
Data shows that the number of newly created tokens and daily graduated tokens on the platform has plunged over 90% from its February peak.
“The launch of TRUMP and MELANIA marked the top for memecoins as it sucked liquidity and attention out of all the other cryptocurrencies,” Ong stated.
Pump.fun Sees 63% Drop in Trading Volumes
The decline marks a stark contrast to the frenzied activity that followed the launch of former U.S. President Donald Trump’s memecoin on Jan. 18.
At the time, Pump.fun hit an all-time high of $3.3 billion in weekly trading volume.
However, since then, trading volumes on the platform have fallen 63% between January and February.
CoinMarketCap data also reveals that the total market capitalization of meme coins, which reached a record $124 billion on Dec. 5, has now tumbled to $54 billion.
“If the launch of both these coins wasn’t enough to end the memecoin mania, LIBRA was the final nail in the coffin, shattering the illusion that memecoins were fair launches,” Ong explained, adding that the incident exposed how insiders were profiting at the expense of retail investors.
The Libra token, which was falsely linked to Argentine President Javier Milei, collapsed within hours after insiders cashed out over $107 million, erasing nearly 94% of its value.
While Ong acknowledges that meme coins have always been a “seasonal” trend, he believes some will continue to survive future market cycles.
His comments align with recent findings from on-chain analytics firm Santiment, which suggested that the crypto market could be shifting toward a healthier phase as interest in meme coins fades and investors refocus on assets like Bitcoin, Ethereum, and other layer-1 altcoins.
Ong predicts an “extreme case of power law,” where nearly all meme coins will fail while a select few endure.
“DOGE, SHIB, and BONK have weathered market cycles and offer lessons for memecoin creators looking to build long-term assets,” he said.
Over 86% of Libra Meme Coin Traders Sold at a Loss
As reported, on-chain analysis has revealed that the majority of Libra meme coin investors suffered significant losses in what appears to be a classic pump-and-dump scheme.
According to blockchain analytics firm Nansen, over 86% of traders, amounting to 15,430 wallets that traded with gains or losses exceeding $1,000, sold at a loss.
The combined realized losses reached a staggering $251 million.
Central figures behind the LIBRA token launch include Hayden Davis, CEO of Kelsier Ventures, and Julian Peh, CEO of KIP Protocol.
Davis and Kelsier Ventures reportedly profited approximately $100 million from the token’s launch, though Davis insists he does not directly hold the tokens and has no plans to sell them.
Local media outlet La Nación reported that messages allegedly implicating Milei’s sister, Karina Milei, might indicate further involvement—claims denied by Davis.
