Elon Musk ‘s use of the phrase “Instability.AI” (which stands for Instability.Artificial Intelligence) inflamed. This being the case, many coin projects flocked to tweets. While many of the coins featured in the tweets are quickly created ‘fake projects’, they are already falling prey to fraud.
These tokens, despite their instant brilliance, largely lack any detail that could add any value. They are being created not as a testament to blockchain’s revolutionary potential, but as a speculative gamble that preys on the hopes (and wallets) of the uninformed investor.
so instable now https://t.co/vhSTk1XzGC pic.twitter.com/23sSenZFWo
— Rock 🪨 (@DataaRocks) November 20, 2023NEWS CONTINUES BELOW
The inherent worthlessness of such tokens stems from a few fundamental flaws, Elon Musk’s tweet reads below. First, they lack basic utility. Unlike established cryptocurrencies or tokens that fuel blockchain ecosystems, these instant meme coins do not offer any services, products or innovations. Moreover, they lack an ecosystem that can create lasting value.
Secondly, the speed at which these tokens are produced and marketed is too fast to be real. The base code for many of these tokens can be quickly replicated, often by recycling them from previous meme coin iterations. This rushed production cycle means that due care for safety and functionality, if at all, takes a backseat.
Third, the market dynamics of supply and demand are not in their favor. With each new coin inspired by the tweet, the market becomes more saturated with tokens that are not only similar, but also identical in purpose and function, to capitalize on a short-lived moment of excitement. As the initial excitement fades, so does trading volume, leading to an inevitable decline in value.
Moreover, as Koinfinans.com has reported, the narrative these coins are tied to is often presented as a quick and opportunistic response to a celebrity’s social media activity. Moreover, it lacks the staying power required for any financial instrument to retain its value.