Cardano founder Charles Hoskinson criticized the memcoirs, comparing them with the fleeting glory of celebrities. The businessman said that memeen tokens are created without benefit, exclusively for selected groups of people so that they can earn money.

Charles Hoskinson in an interview with the YouTube channel Wolf of All Streets said that in the long run 99% of memcoids will crash. In his opinion, almost all memecoirs are extremely unstable: at first they experience phenomenal growth, and then the demand for them falls due to the lack of a strong ecosystem. If the developers do not make changes to the projects, users leave them, and memotics lose their value.

“That’s why 99% of the memecoons will fail. Developers need to build a community where users will be able to really be involved in the project and interact with each other. Otherwise, people will leave, ”Hoskinson explained.

The founder of Cardano criticized the distribution policy of memcoids, saying that “selfish insiders” specially inflate the cost of tokens, promoting the project only to sell coins with great profit. This model benefits insiders and does not motivate the creators of projects to develop them in the future.

Hoskinson claims that memcoirs have a negative impact on the entire cryptocurrency market, consuming liquidity, but without real use options. He compared the memecoirs with the “transfusion of water from one bowl to another”, explaining that most of the capital is in the pockets of the founders.

Hoskinson believes that the sustainable creation of the value of the cryptoine will occur due to decentralized finances (Defi) and bitcoin, algorithmic stablecoins and the tokenization of real assets, and not just due to “viral” tokens without a concretized road map.

Recently, Hoskinson was lamented by the previous leadership of the US Securities and Exchange Commission (SEC), because due to court persecution of cryptocurrencies in the digital assets industry, there is still a “criminal stigma”.