Castle Island Ventures partner Nick Carter believes that the Libra (LIBRA) cryptocurrency scam has buried meme tokens.
The scam carried out by the creators of Libra clearly showed that people with inside information are making millions by trading meme tokens, while ordinary traders and even crypto whales suffer losses.
Even experienced digital asset traders may find themselves in the lurch. For example, a trader who made his fortune on the Trump Official (TRUMP) and Official Melania (MELANIA) memecoins, lost $1,76 million by investing in LIBRA, a fact that Carter believes takes away the appeal of meme tokens.
Memcoins are dead for good (they obviously won't disappear, but few will trade them). Trading meme tokens was based on the false belief that casinos were at least fair, Nick wrote.
Nick Carter
Carter noted that meme-based cryptocurrencies became popular because people believed that everyone had a roughly equal chance of making a profit. As it turns out, this is not the case, and the profits go to traders with inside information.
Token Libra, which advertised Argentine President Javier Miley has become one of the most prominent examples of digital asset scams, as its market capitalization at its peak exceeded $4 billion, and as a result of the collapse of the coin's rate, investors lost a lot of money.
Memecoins are baked. They will continue to be issued, and maybe some will make money on them, but meme tokens have gone out of the mainstream. They will make money on private investors, because they are not always online and do not know how volatile this sector is.
The endless scandals will first scare off smart investors, and then a more mainstream audience. Those involved in insider trading have left a trail online, and law enforcement officials may contact them within the next few months or years, Carter concluded.
