Pump.fun Co-Founder Alon Cohen: Most Altcoins Are Just Like Memecoins

Sean Williams
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Alon Cohen, co-founder of the memecoin platform Pump.fun, recently sparked a debate over the price dynamics of altcoins and memecoins. He argued that many tech altcoins share the same value proposition as memecoins but come with a lower float, higher fully-diluted value, and heavy venture capitalist involvement, which can often exploit retail traders as exit liquidity. Cohen’s comments were in response to a post that suggested memecoins were to blame for the downturn in the altcoin market in April 2024.

According to Cohen, Pump.fun—launched in January 2024—was not the cause of the altcoin price crash. He emphasized that the memecoin sector was already thriving well before the April crash, adding that “most people with day jobs don’t care about tech,” but rather focus on personal fulfillment and enjoy making a modest profit from trading. Cohen’s remarks highlight the increasing rift between those who see altcoins as tools for technological innovation and those who treat them as speculative assets with no proven utility.

Memecoin
Total deployed transactions on Pump.fun. Source: Dune analytics

The broader crypto market experienced turbulence in early 2024. As the Total3 indicator, which measures the total altcoin market capitalization excluding Bitcoin (BTC) and Ether (ETH), shows, altcoin prices peaked in March 2024 at around $788 billion before collapsing in April. This sharp decline sparked fears of an oversaturated market, with too many currencies competing for limited attention and capital.

Despite the bear market in altcoins, Cohen pointed out that institutional-backed altcoins tended to perform better throughout 2024. Yat Siu, co-founder of Animoca Brands, echoed this sentiment, explaining that institutions provide crucial support for prices by buying on the open market, unlike closed-off sales that often leave retail traders vulnerable.

Also Read: Crypto’s PvP vs. PvE Showdown: Ross Ulbricht’s $12M Blunder & Pump.fun’s Token King

As the debate continues, Cohen’s perspective shines a light on the complex dynamics shaping the altcoin and memecoin markets, where speculative trading and institutional influence intersect with broader market sentiment.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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