Nic Carter Says Memecoins Are Dead—Is He Right?

Carter is known for sharing his insights on market fundamentals and trends. So, he couldn’t ignore the current state of the memecoin market.

If you’re out of the loop, discussions about insider trading in the memecoin sector have heated up after Argentinian President Javier Milei posted about a memecoin called LIBRA on his X account.

LIBRA has been a disaster.

The memecoin has plummeted, and Milei faces fraud allegations. At the same time, shocking details about LIBRA’s launch and insider trading were exposed during Coffeezilla’s interview with Hayden Devis, the main person behind its launch.

Overall, the memecoin market is down, and according to Nic Carter, while the sector won’t fully disappear, the trade is gone.

The memecoin trade was entirely based on a claim that was ultimately exposed as a lie – that the casino was at least fair.

– Carter wrote. 

Memecoins and the Fair Launch Illusion

According to Carter, memecoins were built on the idea of a fair launch, where retail investors had the same chance to profit as VCs. Beyond their launch mechanics, they serve no real purpose, he says. 

Carter argues that as memecoins grew into a major sector, semi-professional entities inevitably stepped in to exploit prelaunch deals and trade on insider information.

Reflecting on the LIBRA case, Carter acknowledges that despite Hayden's flaws, he has done more than anyone else to expose the corruption in the memecoin sector and deserves credit for that.

He describes LIBRA’s launch (which he calls “Milei coin”) as proof that the game was rigged from the start. At the same time, he notes that LIBRA is just the latest in a series of unfair, bot-dominated launches.

The casino didn’t take a slight edge – it was more like 90/10 in favor of the house.

 – the post mentions. 

How Does Nic Carter See the Future of Crypto? 

In his post, Carter outlined what he believes will happen next in the sector.

First, he argues that the memecoin meta is dead. While some launches will still see success, the mass market will gradually move away from memecoins. Retail investors who remain unaware of the market’s flaws will still be targeted, but smart investors will leave, and others will follow.

Carter also expects a wave of law enforcement actions related to insider trading in memecoins. “Insider trading is still illegal, no matter the underlying substrate,” he noted.

Meanwhile, crowdfunding platforms like Echo will thrive, providing retail investors access to token launches while sidestepping securities issues.

The market is evolving. Traditional token launches will continue, but with lower pre-launch valuations. As a result, VCs will experience the pain of seeing tokens trade below their initial investment price.

Looking ahead, Carter believes that with upcoming SEC regulations, tokens will soon be able to return value to holders – operating somewhat like stocks, but with greater flexibility.

No Need to Be Upset

At the end of his post, Carter says that while memecoins were considered a fair space where everyone could make money, there’s no reason to be upset about this illusion being shattered.

He points out that there are still profitable trades to make and that this is simply part of the market maturing. He believes moving past the unfair memecoin sector is a positive change that should be celebrated.

Who Is Nic Carter, and Is He Right About Memecoins?

Carter is a prominent voice in crypto. An alum of Fidelity Investments, he has his own approach and views that often stand out. For example, while many Bitcoiners see the U.S. holding Bitcoin as a reserve asset as a good thing, Carter argues that it could undermine confidence in the dollar on the global stage.

The investor has more than 406,000 followers on X and has appeared on Bloomberg, CNBC, BBC News, Bitcoin Magazine, and other platforms.

Is he right on memecoins? 

Only time will tell. Of course, like any opinion, his views can be right or wrong—so always do your own research to draw your own conclusions.