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episode 34
analyzes the Solana blockchain meme coin phenomenon
it argues that the surge
fueled by platforms like pump dot fun
is unsustainable and may be nearing its end
the article highlights
the losses suffered by retail investors
compared to early adopters
and platform owners
salon has under performance against Bitcoin
and upcoming token unlocks
suggest potential further decline
ever hear about those crypto fortunes
you know the ones made overnight
well
turns out the flip side is fortunes lost just as fast
yeah so today we're diving deep into this uh
this world of meme coins on Salona okay
trying to figure out
if all that glitters is really gold right
you're probably wondering what exactly ism meme coin
think Dogecoin Shiba Inu
those are the classics yeah
but get this
we've got Trump and Melania tokens making waves
wow all built on pure hype
they live on platforms like Pump Dot Fun
which uh churn out these tokens like a factory
yeah we've got this recent Crypto Daily article
just packed with data
so let's see what's really going on
this article pits a crazy picture
uh the Trump token
for example peaked at an 8.3 billion dollar market cap
yeah and then crashed
wiping out $11 billion Melania took a 90% nosedive
it makes you wonder
are we just seeing a handful of lucky winners
right or is there like a bigger system at play
it's a classic case really
of a zero sum game for every winner waking in those
you know overnight riches
right to somebody on the losing end
yeah and when that hype driven music stops
somebody's left holding the bag
so you're saying it's not all sunshine and rainbows in
uh meme coin land
well no
not really
it's very reminiscent of previous crypto bubbles
remember the ICO craze in 2017
yeah NFTs in 2021
these manias they often rely on the greater fool theory
right
banking on someone else buying it at a higher price
regardless of you know
actual value yeah
and when that liquidity dries up
the whole thing comes crashing down
speaking of fueling the frenzy
let's talk about this pump dot fun platform okay
yeah they've launched over 5.39 million tokens
can you believe that whoa
that's a lot and they're not doing too shabbly either
they're pulling in over 2 million sol in revenue right
that's nearly half a billion dollars cheese
on New Year's Day this year
they made a whopping $15 million in a single day
wow so it sounds like a gold rush
but is everyone you know
striking it rich that massive revenue figure
it's actually a key insight into how this system works
okay it highlights the um
value extraction model at play
right while pumped out fun flourishes you know
the data reveals that over two thirds of its users
are actually losing money really yeah
they're essentially keeping the platform afloat
so while it looks like everyone's winning
the house always wins in the end
pretty much yeah
it's a pattern we've seen before
with centralized exchanges
varying previous crypto booms right
they profit handsomely from fees
while many retail investors
they get caught up in the hype
and end up with empty pockets
so it's not just individual meme coins crashing
it seems like the whole market's feeling the heat
yeah the article mentions $46 billion
just vanishing from the market
since Donald Trump took office
oh wow
and that dwindling liquidity right
that's a classic sign of a bubble about to burst
at Battle Point it raises the question yeah
are we seeing history repeat itself
thick back to the 2017 ICO boom and bust
followed by that NFT frenzy and subsequent collapse
yeah
are mean coins in 2025 following the same trajectory
it's giving serious deja vu
that's for sure and at the heart of it all is Salona
yeah it's been v h
e go 2 platform for this meme coined explosion right
but hasn't it been losing value against Bitcoin
since early 2024 yeah
all that talk about Solana outperforming Ethereum
seems a bit misleading
when you look at the bigger picture
yeah it is
is Solana's success just a mirage created by uh
meme coin hype that's a critical question
and there's another layer to this story
okay
the looming threat of massive token unlocks for Salona
right
imagine a huge influx of Sol tokens hitting the market
okay the big institutional players who bought in early
are sitting on hefty profits right
they're likely looking to
you know cash out
yeah and these unlock events could be
the perfect opportunity so
we could be seeing a scenario where
early investors dump their unlocked tokens
driving the price down and leaving uh
retail investors holding the bag
precisely and this could further
accelerate Salona's decline against bitcoin
ouch underscoring a critical point here
okay dominance in a niche market like mean coins
doesn't guarantee long term strength
okay so
let's pause here for a second
to make sure we're all on the same page
we've established that meme coins are inherently
a zero sum game uh huh
with platforms like pumpdot fun
often benefiting the most right
and while Salona
seems to be riding high on this meme coin wave
this might be an illusion
yeah and those upcoming token unlocks
could trigger a serious downturn
absolutely and all of this begs a bigger question yeah
what's next for Solana will it manage to
break free from this speculative bubble
right and
establish itself as a platform with real world value
or will it go the way of Icos and NFTs
fading into obscurity
that's the million dollar question
and honestly it's a bit nerve wracking
we're gonna dig deeper into that
in part 2 but first
let's explore a little more about what makes
people jump headfirst into this um
volatile world
you know as we're talking about
this potential downturn for Salona
it makes me wonder about the bigger picture
even if this meme coin bubble bursts
and the price of SLL takes a hit
does that necessarily mean Salona is like doomed
what about the underlying technology
and its potential for real world
you know applications
that's the million dollar question everyone's asking
and to answer that we need to remember
that Swana does have some serious technical advantages
it's known for its speed and scalability
which are crucial for handling lots of transactions
and there are some fascinating projects
being built on Salona that uh
go beyond these meme coins
so there's hope for Salani
yet it's not all just hype and speculation
not at all think about Ethereum
it started as the platform for Icos
which as we discuss were mostly speculative and uh
LED to a crash but Ethereum didn't disappear
it evolved
it became the foundation for decentralized finance
NFTs and a whole ecosystem of
you know innovative applications
so you're saying Solana could follow a similar path
shifting from these hype driven
meme coins to more practical
utility driven projects
that would be quite a turnaround
it's certainly a possibility
but it won't be easy
Solana needs to address some key challenges
first there are concerns about centralization
the platform has experienced network outages
in the past
raising questions about its resilience and security
yes those outages were big news
definitely
made people think twice about Solana's reliability
exactly a second challenge is attracting developers
who are focused on building real world solutions
not just chasing profits from the next
you know mean coin craze
that shift in focus is essential
so Salona's future hinges on whether it can evolve
beyond the hype
address these challenges and build a stronger
more decentralized ecosystem
it's almost like a Phoenix
rising from the ashes of this meme coin frenzy
wouldn't she say that's a great analogy
yeah but even if Solana pulls off this transformation
it still faces stiff competition from other platforms
like Ethereum Cardano and Polkadot
the crypto space is constantly evolving
so it's a constant race to innovate and stay ahead
that's true it's a dynamic landscape
and predicting the future is impossible
but as we've been saying understanding the past
helps us make better decisions in the present
and speaking of understanding
one thing that strikes me
is the psychology of this whole meme coin phenomenon
it's like this collective delusion
fueled by FOMO and the dream of getting rich quick
you've hit on a crucial point
behavioral
economics plays a huge role in financial markets
and crypto is no exception
people often make irrational decisions
driven by emotions and biases rather than logic
it's almost like
our brains are wired to chase the next big thing
even if it means ignoring the risks
and the memecoin crazes a perfect example
these tokens have no inherent value
they're based on jokes and internet memes
yet people pour millions
even billions into them hoping to ride the wave
it's mind boggling
but it also shows the power of community
and social media these meme coins wouldn't exist
without the online communities that
create and promote them absolutely
we're witnessing a new kind of financial tribalism
people
align themselves with specific crypto communities
and invest based on you know
sheer beliefs and narratives
often disregarding traditional financial metrics
it's like choosing your favorite sports team
and cheering for them
even if they haven't won a game all season
exactly and this tribalism can be a double edged sword
it can be a powerful force for good
but it can also fuel speculation and manipulation
so how do we navigate this complex landscape
how do we separate genuine innovation
from hype driven schemes
it feels like a minefield out there
it definitely requires critical thinking
independent research and a healthy dose of skepticism
don't just follow the crowd
or blindly trust influencers
do your own due diligence
understand the technology
the team behind the project
the actual use cases and the risks involved
before investing your hard on money
that's great advice it they anything else in life
if it sounds too good to be true
it probably is always question what you see in here
especially in a fast moving space like
you know crypto absolutely
there are no shortcuts to success
and that applies to the crypto world as well
well said
this conversation has given me a lot to think about
and I'm sure our listeners feel the same way
we've gone deep into the meme coin frenzy on Solana
from the rise and fall of individual tokens
to the platform's future prospects
we've even explored the psychology behind this
speculative bubble it's been a great discussion
we've uncovered some crucial insights
and I think this knowledge will help
our listeners navigate the crypto market
with a more um
informed and critical eye
I agree but before we wrap up
there's one more crucial aspect we need to consider
the broader implications of this meme coin craze
what does it mean for the future of crypto
and finance as a whole we'll tackle that in Part 3
so stay tuned it's fascinating how this meme coin craze
kind of
mirrors some trends we've seen in the wider market
yeah
remember the Game Stop in AMC Frenzy a few years back
or the explosion of NFTs which often
felt driven more by speculation than any real world use
right it makes you wonder
it's almost as if we're living in this age of uh
financialization uh huh
where everything even internet jokes and digital art
becomes a tradable asset it makes you question
the role of speculation in our economy
yeah that's a really interesting point
I mean on one hand
speculation can be a driving force for innovation right
it fuels venture capital
startups and the development of new technology exactly
but on the other hand
unchecked speculation can create bubbles
leading to crashes in instability
like the dot com bubble or the 2008 housing crisis
right finding that balance is key
and when it comes to crypto
it feels even more complex
because it's still a relatively new
and unregulated asset class
so how do we encourage innovation
without creating systemic risks
for the whole financial system
that's the billion dollar question
and I don't think anyone has a clear answer yet right
but it's a debate happening right now among regulators
policymakers and industry leaders
it's like
we're all trying to figure out the rules of the game
as we play yeah
one thing that seems clear
is that we need more education
and awareness about the risks of speculative investing
yeah people need to understand that
not every mean coin is a golden ticket to riches
in fact mosts will likely end up worthless
it's like playing the lottery
you might hit the Jackpot
but chances are you won't right
and as we've discussed
the mean coin craze is ultimately a zero sum game
for every winner there are many losers
often those who are less informed
and can least afford the losses
so for those intrigued by crypto
but wanting to avoid getting caught up in the hype
what advice would you give
first and foremost do your research
don't blindly invest in something
just because it's trending on Twitter
or a Youtuber's pushing it
yeah
take the time to understand the technology behind it
the team involved the real world applications
and of course the potential risks
it seems like common sense
but it's easy to get swept up in the uh
the excitement absolutely
and this is where understanding toconomics comes in
toconomics what's that
it refers to the economic model of a cryptocurrency
okay how are the tokens distributed
what's the total supply
is there inflation or deflation built into the system
these are all crucial factors to consider
before investing so
it's like doing your due diligence
before buying stock in a company right
you wouldn't invest
without understanding its financials
right exactly
secondly start small
don't put all your eggs in one basket
diversify your portfolio across different crypto assets
and never invest more than you can afford to lose
treat it like gambling set a budget and stick to it
absolutely and lastly
remember
that crypto is still a young and volatile asset class
prices can swing wildly
and there's always the risk of scams
hacks and regulatory changes
be prepared for a bumpy ride
it's definitely not for the faint of heart
that's for sure yeah
but for those willing to do their research
manage their risks and ride the waves
crypto can be exciting and potentially rewarding
exactly and who knows
maybe one day we'll see a meme coin with real utility
and long term value but until then
proceed with caution and a healthy doses skepticism
well said and on that note
I think
we've reached the end of our deep dive into the meme
coin mania on Solana
it's been an eye opening journey
and hopefully you've gained some
valuable insights into this wild world of crypto
speculation
it's been a pleasure discussing this with you
if you're eager to learn more
be sure to check out the links in the shownotes
from that Crypto Daily article
and remember as always do your own research
think critically and never stop learning
that's it for this episode of The Deep Dive
until next time stay curious and keep exploring