The rise of memecoins is a recent topic of discussion in the crypto industry. Into The Cryptoverse founder and well-known cryptocurrency analyst Benjamin Cowen expressed his views on these meme coins in a tweet.
He claims that meme coins exist only to make their founders rich and that the “strong community” story is false. Cowen believes that most of these memes were created by the same group and were siphoned and dumped until they were no longer profitable.
A daily reminder that these memecoins flooding the market exist to make founders rich.
The “strong community” claim is rubbish.
Most of these memes were created by the same group and just kept pumping and dumping until it was no longer profitable.
— Benjamin Cowan (@intocryptoverse) May 9, 2023
Cowen’s comments come after Pepe Coin (PEPE) experienced a sudden price increase around April 20, which is also the day of the meme.
In just three weeks, the coin’s price has risen tens of thousands of percent, with its market capitalization peaking at nearly $1.7 billion. The story of the Pepe Coin fueled the greed of market participants, with some claiming to have made millions from small investments.
However, Cowen cautions against investing in memecoins as he sees them as money-making schemes. He believes that individuals should be cautious when investing and not be seduced by the potential for quick returns.
As the cryptocurrency market continues to evolve, it is important to stay informed and vigilant. Cowen’s take on memecoins reminds individuals to do their due diligence before investing in any cryptocurrency.
Solana, Polygon, Avalanche, and other altcoins set to diverge from Bitcoin
In another development, Cowan suppose i think Many altcoins are in a “systematic downtrend” against Bitcoin and are set to make new lows against the U.S. dollar this year.
“SOL/BTC, this is a good example. Every time it goes up, everyone is excited, and the result? The momentum will fade anyway.
Look at AVAX/Bitcoin. The pair broke below the lows and bounced again, guess where it got rejected from? Bullish support band. Now it is making new lows for this cycle.
MATIC/BTC continues to push prices lower. So are LTC/BTC, UNI/BTC, MKR/BTC.
Always one low and one high.
Let me say it again, the entire altcoin market is bleeding for Bitcoin. “
Cowen also predicted that Bitcoin will depreciate against the US dollar in the second half of 2023. It may have peaked, or it could be another bull run before turning bearish.
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