The Cardano network’s community has reacted differently to the most recent meme coin rise. While some applaud it as a sign of increasing network activity, volume, and awareness for Cardano, others are raising worries about possible drawbacks including depleting liquidity and the rise of frauds and attacks.
Recently, a tweet thread sparked discussion among Cardano supporters. The meme currency craze was criticised by one user for having no economic worth, comparing it to “shilling grass clippings to your neighbour.” He bemoaned further that it did not further Cardano’s goal of transforming the world.
The usefulness of such currencies was questioned by another discussion participant. He questioned how the project’s value addition would help token holders given that they do not provide stock rights, dividends, or buybacks. He proposed that a utility token’s utility value would need to rise over time in order for its owners to actually profit from it.
Some critics claim that meme coins might deplete the network’s liquidity and result in a small number of users reaping enormous gains at the cost of the majority. They also worry about the dangers of fraud and abuse. The introduction of such tokens, which are frequently surrounded by excitement and speculative activity, might attract bad actors attempting to prey on naive investors.
These worries are not shared by everyone in the Cardano community, though. Some contend that the expansion of the market for meme coins may be advantageous. They see rising trading volume and network activity as signs of a healthy ecosystem. These coins may create greater awareness about the blockchain as a whole, luring additional developers and initiatives as a result.
