You recently mentioned that 91% of memecoins are scams, frauds or have vulnerabilities. Can you elaborate on these issues in the memecoin market and what might be causing them?
Creating a token on Solana today is no harder than writing an email. Anyone can launch a new asset using no-code solutions in just a few minutes. You don’t need any background, experience, or skills at all.
This creates enormous potential for the development of the memecoin system on Solana – while also being its Achilles’ heel. When token launching is so easy, many new assets are created, most of them of very low quality – poor code, poor strategy, and poor community engagement.
Some people create mediocre projects because they don’t know how else to act – but some do it on purpose. As the memecoin market soars, scammers are launching their coins in an attempt to make a profit. Market conditions are in favor of this, while there are no established mechanisms to control such behavior.
What should cryptocurrency users focus on to determine which 9% memecoins are really worth it?
There are several green flags that indicate a project is less likely to be a scam. The first two are an established community of several thousand people on Twitter and Discord — and a well-written whitepaper describing the token economy and token allocation. It’s also important to check the number of token holders and the amount of tokens distributed among them. If multiple tokens are held on one or a few addresses, that’s a potential red flag.
It’s worth considering tokens already listed on exchanges – while they’re not a silver bullet, reputable exchanges do a thorough background check before listing new assets. Also, check for independent security audits conducted by a reputable organization – it’s one of the best ways to know that developers can’t technically pull the rug out from under their feet.
It’s also great to know who’s building the project. In the memecoin environment, it’s common for the identity of the developer to be unknown – while this isn’t always a sign of a scam, knowing the team can increase trust. That’s why, at Memepad, we perform KYC on all token founders to ensure their accountability.
The current trend in the memecoin market is the emergence of celebrity-backed memecoins. How do you think celebrity influence affects the image and adoption of mainstream cryptocurrencies?
I love the concept of celebrity tokens. Celebrities launch crypto assets to strengthen their bond with their fan base, and fans can feel involved in their favorite star’s endeavors. At the same time, thousands of new users join the cryptocurrency, giving them an easy introduction to digital assets. It’s a win-win situation.
Unfortunately, this is not the case in practice. Celebrities often create assets simply to make extra money and engage in questionable methods to promote their assets, while the tokens themselves lack a strong use case. The controversy surrounding celebrity tokens is unlikely to boost cryptocurrencies’ reputation in the eyes of the public.
What is the role of celebrities in promoting suspicious projects, and how can this role be improved?
Traditional promotions for celebrity tokens involve advertising on social media and promoting them in communities – similar to how other memecoins enter the market. Unfortunately, in addition to the way they are promoted, celebrity tokens often come with the same scams and controversies we see in the memecoin market. The celebrity name in the token’s title does not guarantee that it will be trouble-free.
Recently, the popular tokens launched by Caitlyn Jenner, an American media personality, and Iggy Azalea, an Australian rapper, have been at the center of a controversy involving Sahil Arora — an influencer who allegedly defrauded the stars while launching and promoting their tokens. A few years ago, the Securities and Exchange Commission fined Kim Kardashian for illegally advertising a shady project, Ethereum Max, which quickly dropped to zero.
Scammers who run token launches or listings often scam celebrities. These scammers buy up most of the supply before the celebrity promotes the token, and once the promotions start, they sell all of their tokens.
Celebrities need a more sustainable approach to launching tokens. Professional launch platforms with qualified technical and marketing support can make tokens more than just a tool for short-term gains. Assets with strong use cases and secure tokens can boost the celebrity’s reputation and provide thousands of crypto newbies with a smooth entry into Web3.
Learning the basics and building the necessary relationships takes years: celebrities may not have the time or expertise to delve into the details. Teaming up with a trusted partner can be a great way for them to overcome the complexities associated with developing and supporting a memecoin project.
You have suggested that one way to improve the memecoin market is to create a more secure and advanced infrastructure. How can this be addressed in order to ensure security and verification among existing memecoin launchers?
The memecoin market is nothing but the wild west, so users need some surefire ways to identify non-scam projects that they can invest in. Professional memecoin launchpads can serve as safe islands.
Unfortunately, not all players in the industry believe in this approach. Memecoin launchers like Pump.Fun, GemPad, and PinkSale offer low entry barriers, announce token creation and launch within 10 minutes, and lack strict verification procedures. As a result, scam projects thrive, along with risks for investors.
What are the main benefits for memecoin developers working with launchpads?
Launchpads guide the public sales process. They help developers attract thousands of users who are eager to find a gem to invest in. In return, the community gets a carefully selected project — with a robust token economy, successful security checks, and due diligence done for them. It’s a win-win situation: Launchpads help developers find an audience for their launch, and the audience gets a high-quality project.
What future developments or features can we expect from Memepad to enhance the security and user experience of memecoins for both investors and developers?
Our goal is to be more than just a launchpad – it’s an ecosystem where projects, users, and investors connect and benefit from each other. In this MemeVerse, the community gets the chance to participate in the launch of proven quality tokens, while projects gain massive growth opportunities.
We recently successfully sold MPAD – the native token of the platform which we will be launching soon. The token will provide multiple use cases for developers and users, balancing the project’s economy and creating a foundation for its long-term growth. We are now selecting a launch date for the token amidst the most positive sentiment in the market – probably in July. The team is currently focusing on product development and strategic marketing to ensure a successful launch.