Cardano The latest meme coin rally on its network was met with a divided reaction from the community. Some hailed this as a sign of increased network activity, increased volume and increased interest for Cardano, while others voice their concerns about potential negative impacts such as draining liquidity and the proliferation of scams and exploits. A recent thread of tweets sparked controversy among Cardano enthusiasts.
a user meme coin phenomenon due to its lack of economic value criticized. He also complained that Cardano did not contribute to its mission to change the world.
The memecoin exit liquidity you tap is someone else’s life.
No economic value added. No service. No goods. Equivalent to shilling grass clippings to your neighbor.
NEWS CONTINUES BELOWTell me again how #Cardano is changing the world.
— Doctor ₳ (@Doctor__A__) May 31, 2023
NEWS CONTINUES BELOW
Another user in the thread questioned the usefulness of such coins. He wondered how the value added by the project would benefit token investors, as they do not offer equity rights, dividends or buybacks. He suggested that for a utility token to truly benefit its holders, the utility value must increase over time.
Some opponents argue that meme coins can deplete liquidity in the network and a few users can make huge profits at the expense of many. They also fear the risks of fraud and abuse. Often characterized by hype and speculation, the entry of such tokens can attract malicious actors who want to take advantage of uninformed investors. However Altcoins Not everyone in the community shares these concerns. Some argue that the growth of the meme coin market could be beneficial. To them, increased transaction volume and network activity can be seen as indicators of a thriving ecosystem. The sounds these coins create could potentially attract more developers and projects by drawing more attention to the blockchain itself.