Bitwise’s Matt Hougan Sees Meme Coin Boom Coming to an End Amid Rising Scams

According to Matt Hougan, Bitwise’s Chief Investment Officer, the meme coin market hype is heading for a dramatic downfall, which could mark its end.

Hougan pointed to a series of high-profile scams and illicit activities as the catalysts that will likely extinguish the speculative frenzy surrounding meme coins.

Bitwise CIO Discusses the End of Meme Coin Era

In a recent X (formerly Twitter) post, Hougan noted that the crypto market is currently processing the end of the meme coin frenzy. While the decline may not happen overnight, he predicts that it could be effectively dead within six months.

“The combination of Melania, Libra, and the Lazarus Group using meme coins to launder stolen ETH will kill it dead,” the post read.

The MELANIA token, tied to the former US First Lady, and LIBRA, promoted by Argentine President Javier Milei, have both been embroiled in controversy after insiders reportedly cashed out millions. 

Meanwhile, the Lazarus Group has reportedly leveraged platforms like Pump.fun—a Solana (SOL)-based meme coin launchpad recently compromised in a hack—to launder over $1.5 billion in stolen funds from a massive Bybit exchange heist.

Hougan emphasized that the decline of interest in meme coins could leave a short-term void in market enthusiasm. Yet, new narratives are already poised to take their place. These include the institutional adoption of Bitcoin (BTC), which continues to gain traction with ETFs and large-scale corporate holdings. 

Stablecoins are becoming crucial as major institutions hint at increased adoption. Tokenization is unlocking liquidity in real-world assets. Finally, decentralized finance (DeFi) is staging a comeback, attracting retail and institutional users with fresh innovations.

Nonetheless, not all share Hougan’s pessimism. Memecoins have long thrived on hype and community belief rather than intrinsic value—a phenomenon recently praised by Cryptoquant CEO Ki Young Ju.

“If you can create something people believe in, you can thrive as an entrepreneur in the crypto industry,” he stated.

Ju argued that meme coins tap into deep-seated human instincts and cultural patterns. They reflect the need for symbols and beliefs that bring people together, much like religious or spiritual systems have in the past.

Despite Hougan’s concerns, the meme sector is still showing signs of life. At press time, its market cap stood at $64.2 billion, reflecting a 1.2% increase in the last 24 hours. 

This growth contrasts with the broader crypto market, which has shed $109 billion at the same time. Notably, 7 of the top 10 meme coins have posted gains in the past 24 hours.

Nonetheless, despite these recent gains, 90% of the top 10 meme coins have registered losses over the past week.