Written by GEORGII VERBITSKII, Cointelegraph compiled by BitpushNews

In the past year, meme coins have dominated the narrative in the cryptocurrency field, triggering a series of high-profile events. In these events, most traders suffered losses while insiders profited from it. Libra tokens alone resulted in $4.4 billion in public losses by some estimates. Unlike previous wide market growth in cryptocurrency cycles that would reward holders, today’s meme coin speculation creates an environment where the chances of success for ordinary traders are slim. How exactly did meme coins push the market to a dead end? Will this situation end?

Investment and speculation are essentially two completely different games, with different rules. Investing is not to make money quickly, but to buy appropriate assets to protect capital in the long run. Usually, investors do not wait for the so-called "entry opportunity", but instead buy assets that can be held for a long time. These assets will increase value relative to fiat currencies based on fundamental factors. For example, stocks, gold and Bitcoin are all appreciating relative to the dollar facing unlimited issuance and inflation.

Some assets also have additional growth momentum, such as growing real estate demand, increased corporate profits, and even adoption of Bitcoin, but these are all additional dividends. The key is that your investment should not lose value completely relative to fiat currency. Investors follow long-term macroeconomic trends, which helps them maintain their purchasing power.

On the other hand, speculation is a zero-sum game, and a few skilled people make a profit from the ignorance of most people. Often, these people are chasing fast profits. This is what happens to meme coins. Unlike traditional investments, meme coins lack intrinsic value, dividends or interest returns. Take Bitcoin as an example. When a trader sells, the "big fool" that takes over may be a company that adopts the Bitcoin standard, followed by others to build strategic Bitcoin reserves after the United States. However, for tokens like LIBRA, the so-called "big fools" are those who bought after Javier Milei's announcement on the X platform. So far – there are no more buyers.

Meme coins work similarly toOnline casino. They provide entertainment and promise quick profits, but only those who create and promote them can benefit from it. Unlike regulated gambling where risks are well known, meme coins are often hyped by influential figures — from the well-known cryptocurrency internet celebrity Murad to the U.S. president — and thus sparked discussions on social media. The cruel reality is that, like in a casino, the odds of winning are overwhelmingly biased towards insiders and early adopters, while most suffer losses.

The meme coin craze obviously relies on speculation and psychological stimulation—a game that inspires emotions and leaves players’ wallets empty. Platforms like Pump.fun, which help meme coins issue and make huge profits from them, proves that selling shovels in the "gold rush" is the best way to make money. However, opening a casino requires a license and must be operated in strictly designated areas, but why can anyone issue their own meme coins?

This situation may change soon.

The lack of regulatory oversight has allowed the meme coins to grow explosively. How did we get to this point? Let’s review the activities of the Securities and Exchange Commission (SEC) in recent years, filing lawsuits against major decentralized finance (DeFi) protocols and large cryptocurrency companies trying to act fairly. Another serious move is Operation Chokepoint 2.0, launched by the last U.S., which targets the entire crypto industry. All these moves not only stifle the upright companies that have created meaningful things in the crypto space, but also indirectly trigger a counter-force of other players who make profits by taking advantage of unclear rules.

So, cryptocurrency exchanges recently launched the meme currency almost immediately after it was issued. The chaos in the regulatory sector has turned the crypto industry into a huge global casino. In the past, everyone wanted to win this gambling, but now, with the loss on the rise, it seems that general disappointment is spreading.

However, there is still a silver lining. The current U.S. can undoubtedly be called "crypto-friendly", which means we are likely to see significant regulatory progress this year. This is particularly important for the field of Bitcoin decentralized finance (DeFi), which has long found a product-market fit and is developing rapidly to seize the market of traditional finance (banks, brokers and other intermediaries).

It is crucial to rewrite outdated financial regulations as soon as possible. The old rules were designed for systems based on trust in centralized intermediaries, while the new framework had to be incorporated into smart contracts—in other words, executable blockchain code. A stronger regulatory framework may introduce stricter requirements, including mandatory disclosure of token issuances, requiring the disclosure of the creator's identity, and restrictions on the listing of centralized exchanges.

However, market participants may learn lessons from the costly mistakes they make, thus becoming more cautious when investing in meme coins, even without direct external intervention. After a series of severe but thought-provoking meme coin “run away” incidents, the Web3 community must have gradually realized that such projects rarely reward adventurers. If someone still insists on taking a risk, they should consider this as a trip to a casino: carry only the portion of the money they can afford and enjoy the fun of the process.

For those who have no interest in such risk-taking practices, and those who really want to accumulate wealth and pass it on to future generations, join the stable, regular regular Bitcoin purchases. Now, the market seems to be just beginning to realize this more stable way of financial management.