If the events in the past two years tallied with the historical order of things, your utility tokens should be at least 5X up now. Unfortunately, that isn’t the case and your portfolio is now a graveyard of utility tokens that would need a COVID-type federal bailout to break even. You are not alone, personally, I’ve stopped taking a look. Investing in utility tokens from promising projects used to be the way to go…it still is, in my opinion. But the fact is, the tides have turned…for bad.
The regular veteran investor is accustomed to running research on fundamentals, team profiles, tokenomics, and use cases and then proceeding to make a sizeable investment. This investment, they hold on to for months and years as the case may be. If the research is done well, and depending on sheer luck, this investment usually turns out well, at least, better than the stock market.
You’ll wonder why this shift happened, it's all right there. Investors are not interested in the weird blockchain technology anymore. Remember when we used to say “here for the tech”? well, that’s not the case anymore. The quick-bucks gang is winning. It’s not easy for them too, but the chase continues. One platform is blamed for all of this – Pump.fun. Once they are done fighting all the court cases they are currently roped into, they have hundreds of Millions of dollars in revenue to enjoy, I’m sure that didn’t sound cool to you.
So…
Did Pump.fun destroy altcoins?
The answer is NO. Pump.fun is a great tool in its pure form. Arguing in the opposite direction is equivalent to blaming a kitchen knife manufacturer for domestic violence that ends up in a stabbing incident. Cryptocurrency has always benefitted from the degeneracy culture. And you could say that utility tokens are only an advanced form of memecoins. Taking a look at contemporary utility tokens, this is very accurate.
Pump.fun is the memecoin equivalence of Ethereum’s smart contract technology. Everyone can now launch a smart contract token. It is only unfortunate that this has been used to launch only rug-pull memecoins. Cool memecoins have launched on the platform too, the percentage is negligible, to be fair. The memecoin dominance on pump.fun can be likened to the dominance of adult content on OnlyFans. Yes, you’d be surprised to learn that the platform was designed for the general creator economy, like TikTok.
So, Pump.fun and its likes are only victims of poor application and prey to greed and the degeneracy culture. If it destroyed the market for altcoins is a technical Yes, but should it be totally blamed? A definite NO.
Is there hope for Altseason?
You are definitely expecting an answer to this, but take a look at the charts. The brief periods where utility Altcoins showed signs of recovery correspond to moments when the memecoin frenzy briefly settled. The whole market looked on the green path until Donald Trump launched his official memecoin and followed up with another one for his first lady, and then more unofficial ones for Elon Musk, Barron Trump, Satoshi, and you name it. The new frenzy wiped the recovery process and plunged everything back to red.
It appears that the fate of your utility tokens is tied to the end of the memecoin craze or the death of every tool that contributes to it. This includes some of your favorite memecoins shillers. Even blue-chip crypto projects are pivoting to a more memecoin-like culture just to grow. Altcoins don’t stand a chance against the ravaging degeneracy. Old holders are dumping their stakes in some of the best projects to gamble on the next trendy memecoin. Traders, KOLs, and memecoin launchers who make significant profits are cashing out to purchase designer watches and joggers. The whole space is literally losing money.
Not sure if this section answered the question, but the only hope for utility altcoins is the end of the pumpfun-powered memecoin season.
Now the ultimate question…
Is it really a bear season?
Is it? I mean, Bitcoin crossed $100,000 multiple times now and hit a new ATH of $108,000. The presumption that we are in a bear season is only an illusion. A hard illusion anyway. Several memecoins have gone from absolute zero to hundreds of millions, Billions, and then back to levels close to Zero. This is the usual move during bull runs. It is almost obvious that the market indicator points to the same level of greed seen during peak bullruns. But the funds are channeled towards a different class of assets. Failure to play in this field places you on the bear side of the space.
Here’s the bad news, playing in this field doesn’t guarantee a bull-type experience. In fact, you are likely to lose harder. Statistically, only about 10% of memecoin gamblers are in profit. This is normal, as is the case with every gambling and pyramid scheme. To be clear, the only ones in a bullrun are memecoin launchers and ‘KOLS’ dumping free tokens on their followers.
Let me guess, your next question is…
What is the way forward?
There are only two options here, and maybe a third. The first option is to join the memecoin band, gamble on ‘community tokens’, and hope that the devs don’t rug before you get to pull out your capital and some profits. A second option is to stick to the old ways; invest in utility tokens with strong potential and hope that retail pays attention to them sometime in the future. It is pointless saying what I’d do since each strategy has almost the same chance of success. But here’s a third option… Invest in Bitcoin.
Yes, Bitcoin. It is the most sought-after asset in the world right now. Yes, you have to bear with the 30% year-to-year growth, but that is better than losing everything to a memecoin launcher in a third-world country or celebrities looking to strengthen their pockets.