Alon Cohen, the co-founder of Pump.fun, believes that most altcoins are similar to meme coins that they serve the same purpose

Alon Cohen, the co-founder of Pump.fun, believes that most altcoins are similar to meme coins that they serve the same purpose according to his post on X.

He argues that expecting the same strategies from past market cycles to work again is unrealistic.

Altcoins vs. Meme Coins

Many tech-based altcoins are not much different from meme coins. They often have low availability (low float), high theoretical value (fully diluted value), and venture capitalist backing.

Big investors (venture capitalists) sometimes sell their holdings, leaving small investors with losses.

Market Trends

Some people think that the platform Pump.fun contributed to altcoin prices falling, but Cohen says his platform existed before the market downturn in April 2024.

Many retail traders lost too much money in the last cycle and are hesitant to invest again in "the future of finance."

Most people don’t care much about the technology behind crypto; they just want to make money and have fun.

The crypto market has too many different altcoins competing for attention and investment.

In 2024, altcoins backed by institutional investors (big firms) performed better because these firms bought assets publicly, helping stabilize prices.

The overall altcoin market was weak for most of 2024 but saw a big recovery in November 2024, partly due to Donald Trump’s re-election.