Altcoin Co-founder: Most Tech Coins Share Meme Coin's Use Case

pump.fun Co-founder: Most Altcoins Share the Same Use Case as Meme Coins

In a recent social media discussion, Alon Cohen, co-founder of pump.fun, shared his perspective on the similarities between tech-oriented altcoins and Meme coins. Cohen argued that while altcoins often have a more robust technological foundation, they share a similar value proposition with Meme coins, which are typically associated with humor, pop culture, or internet memes.

Cohen pointed out that altcoins often have lower circulation compared to Meme coins, and their fully-diluted valuation (FDV) can be overly diluted. Additionally, Venture Capital (VC) firms play a significant role in the altcoin market, often using retail investors as a source of liquidity for their exits.

In response to a tweet suggesting that pump.fun's issuance of Meme coins had disrupted the price cycle of altcoins, Cohen clarified that pump.fun had already existed before the altcoin market downturn in April 2024. He attributed the crash to the fact that retail investors had suffered significant losses in the previous market cycle and were hesitant to return to investing in the so-called "future of finance."

Cohen believes that most working people are more interested in personal satisfaction and making money through trading than they are in the technological practicality of altcoins. This discussion highlights the growing contradiction between altcoin investors who focus on technological practicality and traders who are purely speculative and ignore the actual use cases of these cryptocurrencies.