Meme Coins and the Crypto Casino: Gambling Addiction By Another Name
14th February 2025
Every crypto cycle brings its own brand of absurdity. In 2017, it was the "Bitcoin, but better" clones. By 2021, we were inundated with NFTs and tokenization fantasies. Now, the spotlight is on meme coins. While they might seem like harmless fun, there's a deeper issue at play: the entire altcoin market—especially meme coins—is built on gambling addiction.
The Evolution of Crypto Madness
Let's take a stroll down memory lane:
Each phase introduces a new way to extract money from the unsuspecting, and meme coins are just the latest iteration.
Let's take a stroll down memory lane:
- 2017: A surge of altcoins claimed to improve upon Bitcoin. Most have since faded into obscurity.
- 2021: The NFT boom promised unique digital ownership. Today, many NFTs have plummeted in value, leaving investors with little more than digital trinkets.
- 2024/2025: Meme coins have taken center stage, with coins like $TRUMP making headlines. Launched on January 17, 2025, $TRUMP quickly reached a peak market value of over $14.5 billion but has since dropped by two-thirds. Entities behind $TRUMP have generated nearly $100 million in trading fees within two weeks, benefiting from the trading frenzy.
Each phase introduces a new way to extract money from the unsuspecting, and meme coins are just the latest iteration.
Meme Coins: The New Face of Gambling
Meme coins are digital assets based on viral internet memes and are primarily used for speculative purposes. They are usually created as "tokens" on existing blockchains, making them easy to produce, and leading to volatility and short-lived popularity. Risks include susceptibility to "pump and dump" schemes, where creators hype and then dump their tokens, causing prices to crash.
The "Pump and Dump" Playbook
A common tactic in the meme coin world is the "pump and dump" scheme:
For instance, the $TRUMP coin experienced a rapid rise and fall, with its value dropping by two-thirds shortly after its launch.
Meme coins are digital assets based on viral internet memes and are primarily used for speculative purposes. They are usually created as "tokens" on existing blockchains, making them easy to produce, and leading to volatility and short-lived popularity. Risks include susceptibility to "pump and dump" schemes, where creators hype and then dump their tokens, causing prices to crash.
The "Pump and Dump" Playbook
A common tactic in the meme coin world is the "pump and dump" scheme:
- Creation: Insiders or creators generate a new token, often allocating a significant portion to themselves at little to no cost.
- Hype: Through social media and online communities, they generate buzz, enticing retail investors to buy in.
- Pump: As demand surges, the token's price skyrockets.
- Dump: Insiders sell off their holdings at the peak, reaping massive profits.
- Collapse: The token's value plummets, leaving latecomers with significant losses.
For instance, the $TRUMP coin experienced a rapid rise and fall, with its value dropping by two-thirds shortly after its launch.
The Uncomfortable Truth
Unlike regulated gambling, the crypto world lacks oversight, consumer protections, and ethical standards. At least casinos have rules and licensed operators; crypto is an unregulated financial wild west that often ends in someone getting swindled.
Bitcoin stands apart as the only asset in this space that isn't a scam. It's decentralized, has no founder profiting from its distribution, and operates without the need for marketing gimmicks.
Conclusion
Meme coins might offer a momentary thrill, but they're a dangerous game. If you're dabbling in them, be honest with yourself: it's not investing; it's gambling. And in this casino, the house—insiders and creators—almost always wins.
Before diving into the next meme coin craze, ask yourself: are you investing in a future asset or just placing a bet in a high-stakes game of chance?
Unlike regulated gambling, the crypto world lacks oversight, consumer protections, and ethical standards. At least casinos have rules and licensed operators; crypto is an unregulated financial wild west that often ends in someone getting swindled.
Bitcoin stands apart as the only asset in this space that isn't a scam. It's decentralized, has no founder profiting from its distribution, and operates without the need for marketing gimmicks.
Conclusion
Meme coins might offer a momentary thrill, but they're a dangerous game. If you're dabbling in them, be honest with yourself: it's not investing; it's gambling. And in this casino, the house—insiders and creators—almost always wins.
Before diving into the next meme coin craze, ask yourself: are you investing in a future asset or just placing a bet in a high-stakes game of chance?