Memecoins are not dead despite the collapse in prices and fading hype, according to MoonPay president Keith A. Grossman, who believes the sector is undergoing a structural reset rather than a permanent decline.
Grossman argued that memecoins were never solely about jokes or financial nihilism, but about the technological ability to tokenise attention cheaply and at scale using blockchain infrastructure.
“Before crypto, attention could only be monetised by platforms, brands and a small group of influencers, while everyone else generated value for free,” Keith A. Grossman said.
He added that likes, trends, online jokes and digital communities created enormous economic value that remained largely captured by centralised technology platforms.
According to Grossman, blockchain-based social tokens introduced a way for ordinary users to participate directly in the attention economy for the first time.
He compared current pessimism around memecoins to early predictions that social media would fail after the first generation of platforms collapsed in the early 2000s.
Grossman noted that later social media companies transformed a niche concept into a dominant cultural and economic force, suggesting memecoins could follow a similar trajectory.
Data from CoinGecko show that memecoins were among the best-performing crypto asset classes in 2024 and became the dominant narrative for investors during that period.
The sector’s momentum reversed sharply after a series of high-profile collapses undermined confidence in social tokens and speculative community-driven assets.
Analysts criticised memecoins for lacking intrinsic value, a view reinforced by several token implosions that triggered widespread losses.
The memecoin market experienced a major downturn in the first quarter of 2025 following multiple incidents described by traders as rug pulls.
One of the most notable events involved United States President Donald Trump, who launched a memecoin ahead of his January 2025 inauguration.
The token surged to a peak price of $75 before collapsing by more than 90% to around $5.42, according to CoinMarketCap data.
The episode intensified scrutiny around celebrity-backed tokens and their impact on retail investors.
In February, Argentine President Javier Milei endorsed a social token called Libra (CRYPTO:LIBRA), which also suffered a rapid collapse.
The Libra token reached a market capitalisation of approximately $107 million before crashing, leaving around 86% of holders with realised losses exceeding $1,000.
The collapse was widely labelled a rug pull by members of the crypto community.
Milei later attempted to distance himself from the project, but a government investigation was launched into his involvement.
The controversy led to lawsuits from retail investors and calls for impeachment from Argentine lawmakers.
Despite these failures, Grossman believes the underlying concept of tokenised attention remains viable.
He said future iterations of memecoins are likely to place greater emphasis on sustainability, utility and community alignment.
Industry observers expect any revival to involve tighter regulation, clearer governance structures and reduced reliance on celebrity endorsements.
At the time of reporting, Libra price was $0.007644.