Pump.fun Co-Founder Says Tech Altcoins Are No Better Than Meme Coins

In recent developments highlighting the intersection of cryptocurrency and public figures, two major stories have sparked discussions within the digital asset community. Pump.fun co-founder Alon Cohen has drawn attention to the similarities between tech-based altcoins and meme coins, arguing that both rely on speculative trading rather than fundamental value. Meanwhile, Kanye West, now known as Ye, has revealed that he turned down a $2 million offer to promote a fraudulent crypto scheme, shedding light on the risks of celebrity-backed digital assets. 

Pump.fun Co-Founder Calls Out Tech Altcoins, Sparks Debate on Market Dynamics

The cryptocurrency market has long been a battleground for competing ideologies—some investors chase innovation and utility, while others are in it for speculation and profit. This tension was recently highlighted in a debate sparked by Alon Cohen, co-founder of the meme coin launch platform Pump.fun, who challenged the legitimacy of tech-based altcoins, arguing that many of them offer no more real value than meme coins.

Cohen’s comments came in response to an assertion that Pump.fun had disrupted the altcoin price cycle. He pushed back against the claim, noting that Pump.fun had been operating months before the broader altcoin sector downturn that began in April 2024. Instead, Cohen pointed to deeper structural issues within the altcoin market, arguing that most tech-focused alternative cryptocurrencies suffer from low circulating supply, inflated fully diluted valuations, and heavy venture capital involvement—factors that he believes make them just as speculative as meme coins, if not worse.

One of Cohen’s key arguments is that retail traders, burned badly in past market cycles, are no longer willing to buy into the so-called “future of finance” narrative. In his words, “Retail was burned too hard last cycle to just come back to invest in the ‘future of finance.'” Instead, he suggests, many casual investors have pivoted towards meme coins, which provide both entertainment and the potential for short-term financial gains.

He further asserted that most everyday investors are uninterested in complex blockchain projects and are instead looking for personal fulfillment and simple ways to make money. This sentiment echoes a broader shift in the crypto market, where retail participation has increasingly leaned towards meme-driven assets over traditional altcoins promising technological breakthroughs.

Pump.fun, launched in January 2024, emerged amid an already thriving meme coin ecosystem fueled by online communities on X, Reddit, Telegram, and Discord. As these speculative assets gained popularity, some have suggested they played a role in sidelining tech-driven altcoins, making it harder for them to sustain price momentum.

A key indicator of the overall altcoin market’s health is TradingView’s Total3 metric, which measures total cryptocurrency market capitalization excluding Bitcoin (BTC) and Ethereum (ETH). This metric showed that the altcoin market peaked at approximately $788 billion in March 2024 before undergoing a sharp decline in April, only to recover significantly in November following the re-election of Donald Trump as US President.

Some analysts argue that the proliferation of meme coins, with their low barriers to entry and strong community-driven marketing, contributed to the dilution of capital across the crypto market, making it harder for traditional altcoins to attract and retain investor interest. However, Cohen and other meme coin proponents reject this narrative, suggesting instead that the underperformance of tech-driven altcoins is primarily due to structural inefficiencies and unrealistic valuations rather than competition from meme assets.

Beyond the meme coin debate, many analysts agree that the broader crypto market is facing oversaturation. With thousands of altcoins competing for investor attention, securing capital and maintaining a strong community has become increasingly challenging. This is especially true for projects that rely on promises of long-term utility rather than immediate speculative appeal.

However, despite the tough market conditions, some altcoins with institutional backing have fared better than those without. As noted by Animoca Brands co-founder Yat Siu, institutional investors purchasing assets on the open market have helped sustain prices for certain digital assets, whereas projects without institutional support often struggle due to limited liquidity and fragmented investor interest.

The Future of Altcoins and Meme Coins

As the crypto market evolves, the divide between speculative traders and utility-focused investors is likely to persist. Meme coins, often dismissed as fleeting trends, have demonstrated remarkable staying power, frequently outperforming supposedly more serious projects in terms of market activity and community engagement.

At the same time, tech-driven altcoins must contend with shifting investor priorities and an increasingly skeptical retail market. If projects cannot offer clear and compelling value beyond speculation, they risk being overshadowed by the very meme coins they seek to differentiate themselves from.

Ultimately, whether the future of crypto lies in memes or cutting-edge technology, one thing is clear: the market is changing, and investors are changing with it.

Kanye West Rejects $2 Million Crypto Scam Offer, Exposes Fraudulent Scheme

In other news, Kanye West, who now goes by Ye, has revealed that he turned down a $2 million offer to participate in what he describes as a crypto scam. The scheme reportedly involved a fraudulent cryptocurrency promotion, which would have been posted to his 32.6 million followers before he later claimed his account had been hacked. By the time the deception was revealed, unsuspecting victims could have already lost significant amounts of money.

“I was proposed 2 million dollars to scam my community. Those left of it. I said no and stopped working with the person who proposed it,” West wrote in a Feb. 7 post on X.

West provided further details in a follow-up post, including a screenshot that exposed how the fraudulent promotion was supposed to unfold. According to the message he shared, the rapper was offered an initial $750,000 payment to post the scam advertisement and leave it up for eight hours. After that period, he would publicly claim that his account had been hacked. In exchange for maintaining the deception, he was promised a second payment of $1.25 million just 16 hours later.

“The company asking you to do this will be scamming the public out of tens of millions of dollars,” the message warned.

An hour later, West shared another screenshot of a private conversation in which he asked an unnamed X user for a direct “crypto connect” that would bypass middlemen. In response, the user suggested Coinbase CEO Brian Armstrong and offered to request Armstrong’s phone number for West.

West’s revelation has sparked intense discussions within the crypto space. While some praised him for refusing to engage in the scam, others speculated about his motives for sharing the information.

Crypto commentator Armeanio suggested that instead of launching a meme coin, West should consider using cryptocurrency as a means to sell his merchandise. “Celebrity tokens generally bring a reckoning on retail,” Armeanio remarked, highlighting the risks that often accompany celebrity-endorsed crypto projects.

Meanwhile, another analyst, Crypto Vic, speculated that West’s post might not be a stand-alone event but rather part of a larger marketing strategy leading up to his next album release. “He is a master marketer,” Crypto Vic commented, hinting that the rapper could be using the controversy to generate buzz.

The Broader Celebrity Crypto Landscape

West’s disclosure comes at a time when high-profile figures have been increasingly linked to cryptocurrency launches—many of which have ended in controversy. The case of Haliey Welch, widely known as the “Hawk Tuah” girl, serves as a cautionary tale. Welch recently broke her silence after the launch of the HAWK meme coin in December 2024, which saw an initial surge to a $490 million market capitalization before crashing by over 91% within a day. She later claimed she had been misled by the project’s manager.

Similarly, in the political sphere, US President Donald Trump launched the Official Trump (TRUMP) meme coin in January, just before his second-term inauguration. However, within 24 hours, the token suffered a 38% drop in value after First Lady Melania Trump released her own competing meme coin.

The increasing number of celebrity-linked crypto projects has raised concerns about their impact on retail investors. Many of these tokens experience rapid price fluctuations, often leaving unsuspecting buyers with heavy losses. A recent survey revealed that a significant portion of those who invested in the Official Trump and Official Melania meme coins were first-time crypto buyers, underscoring the potential risks associated with such investments.

As the industry grapples with the ethical implications of influencer-backed cryptocurrencies, West’s decision to expose the attempted scam has fueled further debate about celebrity involvement in the digital asset space. Whether this is a standalone moment or part of a larger trend, one thing remains clear: the intersection of celebrity culture and crypto continues to be a volatile and controversial battleground.