Curve founder Michael Egorov warns that the memecoin craze is leading to many small investors being exploited and eroding public confidence in cryptocurrencies.
In a discussion with DeFi researchers Deebs DeFi and Ignas, Egorov argued that memecoin has instilled in the general public the false belief that memecoin represents cryptocurrency and can lead to quick riches.
- Egorov: Memecoin makes ordinary people think that cryptocurrency equals getting rich quick.
- Consequence: many small investors are exploited.
- Legitimate cryptocurrency projects suffer damage to public trust and are labeled as scams.
Michael Egorov's assessment of the impact of memecoin.
Egorov said memecoin had "brainwashed" ordinary users into believing that memecoin was cryptocurrency and could lead to quick riches, creating opportunities to exploit small investors.
He stated in a discussion with Deebs DeFi and Ignas that the direct consequence was that “a large number” of retail investors were exploited. According to Egorov, the memecoin get-rich-quick scheme led many people to approach cryptocurrency with unrealistic expectations, making them easy targets for exploitative schemes.
Egorov also argues that the memecoin wave is reinforcing a cognitive bias in the public: associating cryptocurrencies with fraud and scandal. He believes this trend increases skepticism, causing negative developments to spread across the entire market, not just limited to memecoin.
Why aren't "real" cryptocurrency projects benefiting?
Egorov said that projects focused on decentralization, permissionlessness, and censorship resistance do not benefit from the memecoin craze; on the contrary, they suffer the consequences of lost trust.
According to him, cryptocurrency projects that aim for decentralization, permissionlessness, and censorship resistance are negatively impacted in the eyes of the public, being labeled as scams and criminal. Egorov emphasized that the problem lies not in a lack of technical progress, but in the decline of trust as memecoin shapes how the masses understand cryptocurrency.
