Ansem on the Meme Coin Trend: "Be Careful, Not Everyone Has the Best Intentions"

Ansem, a well-known trader, expressed a cautious outlook on the recent meme coin trend during Messari's Mainnet conference in downtown Manhattan on Tuesday. The remarks come amid controversy surrounding apparent "rugpulls," where celebrities benefit financially while retail investors suffer losses.

Ansem, whose real name is Zion Thomas, stated in a fireside chat with Debra Nita, Assistant Director of YAP Global, "One thing I've had to get used to is that anything remotely associated with me is treated as an endorsement, simply because I have a large online following. You have to be much more careful to assume that everyone has the best intentions. Finances are important."

He further explained that the meme coin trend emerged as a response to the perceived lack of consumer applications within the crypto space. Celebrities, with their "millions of followers," can leverage their "social capital" to rekindle interest in crypto, according to Ansem. However, he acknowledged that this approach doesn't always work out. For instance, rapper Sexyy Red's team reportedly held 90% of the PRESI token supply at launch, while the token promoted by Caitlin Jenner plummeted 99% from its all-time high.

Ansem, an early supporter of Solana, pointed to the platform's user-friendly experience and low transaction costs, enabling retail participation with small investments. This, he believes, is a key factor contributing to the meme coin trend's success. In contrast, high fees on the Ethereum mainnet hindered previous trading cycles.

Despite the recent cooling of the meme coin industry, Ansem remains optimistic about its longevity. He expressed particular interest in emerging chains like Monad, Berachain, and Movement, as well as "alt-VMs" like Move-VM and Solana's SVM.