As I have been saying all along in recent weeks, echoing Murad's “Meme Supercycle Theory”: memecoins represent an evolution in the crypto sector and even a certain “maturity” compared to altcoins in that they are plagued by several structural problems that limit their potential for growth and success.

For those who follow my channels we have been talking about this for some time and will continue to do so.

Since I cannot be exhaustive in one post, I thought I would succinctly group all the problems that AltCoins have and can be grouped as follows:

1️⃣ Overproduction of tokens

In 2024, 600,000 new tokens were launched, with over 5,500 launches daily. This overproduction leads to supply inflation and dilution of the value of individual tokens.

2️⃣ Inflated pre-launch valuations

Founders, VCs (venture capitalists) and angel investors obtain tokens at very low or no cost, while retailers enter at extremely high valuations, making it difficult for them to profit.

This mechanism often turns poor retail into “exit liquidity,” meaning they are dumped in the faces of those who buy the tokens when their price is already high, incurring potential losses.

3️⃣ Poor performance of non-speculative dApps

Despite ten years of smart contract development, few decentralized applications (dApps) have been successful outside the speculation sector. Many successful crypto products are dependent on or directly related to speculation, casting doubt on the real utility of many altcoins.

4️⃣ Tokenomics issues

99% of altcoins do not justify their valuations.

Many projects do not share revenue with token holders because it is not in their best interest.

Even tokens from projects that generate substantial revenue do not always perform well. There is a tendency to value hype rather than revenue.

Revenue creates a limit (a “floor” and a “ceiling”) for the value of the token.

5️⃣ Huge token unlocks coming.

Token unlocks worth $155 billion are expected over the next five years.

These unlocks create selling pressure that hinders the growth in value of non-memecoin altcoins.

🧿Criticism of altcoins is proportional to their inability to offer real value beyond speculation and for the structure of tokenomics that favor insiders at the expense of small retail investors.

📌We buy the token. Not the software.

This is the biggest misunderstanding to be healed currently prevailing in the crypto world.

But situations like yesterday's are beginning to unveil the industry's “Maya veil.”