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- Hoskinson warns most Solana memecoins will fail due to lack of utility and pump-and-dump tactics.
- Solana-based memecoins see 85% market cap decline in 2025, signaling investor loss of confidence.
The rise of memecoins on the Solana blockchain has come under heavy scrutiny by Cardano founder Charles Hoskinson, who has labeled the network as a “memecoin factory” designed for quick profits.
As the market for Solana-based memecoins continues to rise, Hoskinson raises alarms about such projects’ long-term prospects. He argues that most of these tokens lack real utility and are being driven by pump-and-dump schemes that ultimately harm investors.
During an interview with market analyst Scott Melker, Hoskinson clarified his position, noting that most Solana memecoins are doomed to fail unless they develop into projects offering meaningful utility.
Hoskinson stated:
A memecoin is just like the ascendancy of a celebrity that has 15 minutes of fame.
He pointed out that these coins often rise in value quickly but lack the solidity to sustain long-term interest.
The Cardano founder stressed that for a memecoin to be successful in the long run, it must offer more than just hype. These tokens face a quick demise without tangible value or a clear roadmap. According to Hoskinson, around 99% of current memecoins will collapse, as their value is often based on the speculation of early insiders rather than genuine market demand.
Solana Memecoins Underperforming in 2025
Hoskinson’s comments come amid declines in the market value of Solana-based memecoins. Key tokens, such as Official Trump (TRUMP), Bonk (BONK), Fartcoin (FARTCOIN), Dogwifhat (WIF), and Pengu (PENGU), have all suffered huge losses.
From their high in early 2025, the combined market cap of these top five Solana memecoins has dropped by more than 85%, highlighting the volatility and instability of this market segment.
The decline in market cap corresponds to a broader trend of declining interest in memecoins on Solana, according to data from the Pump.Fun platform, which is accountable for launching many of these memecoins, the daily number of new tokens used has fallen since January 2025.
The number of new memecoins launched peaked at over 71,000 in January but has since declined, signaling a possible loss of confidence among investors.
Pump-and-Dump Schemes and Insider Profits
Hoskinson also pointed to the common practice of “pump-and-dump” tactics among memecoin creators. He argued that these projects often benefit only the insiders who create and promote the tokens, while the general market is left holding the bag when the value crashes.
Additionally, he noted that it mirrors previous trends in the crypto market, such as the ICO boom and the NFT craze, both of which saw similar patterns of quick rises followed by declines. In all these cases, he argues, investors were often left with little to show for their investments once the hype faded.
While Hoskinson is not entirely dismissing the role of memecoins in the crypto market, he believes that their long-term value will come from other sectors, such as Bitcoin DeFi, real-world asset tokenization, and algorithmic stablecoins. He firmly believes that cryptocurrency markets need to evolve beyond speculative tokens with little to no practical application.
