Investor Chris Burniske says the recent controversies surrounding memecoin launches have created an ideal opportunity for traditional financial (TradFi) firms to penetrate the crypto market.

The venture capitalist tells his 324,400 followers on the social media platform X that TradFi firms are about to launch crypto-focused products and tokens and show the industry how to effectively raise and preserve capital.

According to Burniske, memecoin launches are notoriously bad at capital preservation, which is the total opposite of how TradFi firms operate.

“Don’t despair that our worthless memecoins were bad at capital formation, the entire world of capital formation is coming to a blockchain near you… 

And for what it’s worth, memecoins were remarkable at capital formation, it was the capital preservation that most lacked. Perfect moment for TradFi to onboard their ‘trusted assets’ onto blockchains and have these RWAs (real-worth assets) appear sexy and trustworthy. Not good or bad, just inevitable.”

RWA is a nascent crypto asset sector where firms or projects bring off-chain assets such as properties, commodities and bonds into the blockchain to be tokenized. Tokenization makes the trading of real-world assets more accessible and transparent.

While Burniske says that most memecoins don’t have lasting power, he thinks that a handful will have a bright future instead of going to zero.

“Though some memecoins will persist… In a select few, I’m a believer.”

At time of writing, the memecoin market cap stands at $52.819 billion, an over 26% decline from last month’s valuation of $71.487 billion, according to data from the crypto exchange Kraken.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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Cardano (ADA) founder Charles Hoskinson believes memecoins are like celebrities who witness short-lived fame before flaming out.

In a new interview on the Wolf of all Streets YouTube channel, Hoskinson says memecoins need to evolve and develop use cases and user bases to avoid going through a ‘dumpening’ – the practice of launching tokens with the sole aim of enriching insiders.

“So a memecoin is just like the ascendancy of a celebrity that has 15 minutes of fame. It doesn’t necessarily mean that that celebrity is going to disappear forever, but they’re in a temporary state of popularity. They have to find a way to become sustainable quickly or otherwise the people stop paying attention and they die out. It’s why the 99% of the memecoins will fail, and the ones that succeed, they pivot into ecosystem-building…

They have to. It’s the only way they can survive. So typically, you have to build community, you have to start doing things with that community, you have to have a reason for people to be there and continue investing.

And it’s really hard because, almost always, the distributions of memecoins are built for insider dump. So the person who issues it, and the insiders who issue it, their only incentive is to pump the price to dump the price. So they have to survive the dumpening.”

Hoskinson also warns that memecoins are hurting the crypto industry, as issuers tend to drain capital from market participants instead of helping boost digital asset adoption

“What’s happening is you’re moving water from one side of the bathtub to the other side of the bathtub… [and] the drain is open, it goes into the founder’s pocket. So basically, you’re not adding water to the tub, you’re losing water over time… It’s net-net neutral or negative.”

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A popular crypto strategist believes that memecoins will have their day under the sun after getting crushed over the last few months.

Pseudonymous trader Altcoin Sherpa tells his 244,300 followers on the social media platform X that he expects meme tokens to eventually take center stage, highlighting that the crypto sector relies on trader attention.

But while the analyst believes that memecoins will make a comeback, he says those that have been around longer than others will likely lead the surge.

One asset on his radar is the Solana (SOL)-based token Bonk (BONK).

“Most memes got smashed overall but I think that they’ll eventually come back to some degree. Memes by nature are attention driven but I do think that some of the more ‘Lindy’ ones will have a better chance

You probably just go off ecosystem. When SOL is hot, coins like BONK are going to be decent bets (along with some others like Fartcoin and WIF and others). BONK being down 85% from highs to lows probably makes it an ok bet down here (I have a bag of it).”

The trader is referring to the Lindy Effect, a concept suggesting that the longer something has survived, the longer it’s likely to keep surviving.

At time of writing, BONK is worth $0.000012.

Another memecoin on the trader’s roster is the Ethereum (ETH)-based token Pepe (PEPE).

“Feels like PEPE is also around a bottom, too.

PEPE obviously an ETH beta but it’s also a good one if BTC starts going wild in my opinion.” 

Looking at the trader’s chart, he seems to predict that PEPE would either rally to a high of $0.000015 or collapse to a new 2025 low of $0.000001.

At time of writing, PEPE is trading for $0.000007.

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