DOGS memecoin ease of access can be a ‘double-edged sword’
Despite the records of the DOGS token, the crypto executive warns that its easy access could eventually lead to its eventual downfall.
On September 10, the DOGS (DOGS) memecoin community page on Telegram announced that 17 million users had requested the airdrop on the Open Network. The platform named the event the largest token generation event in crypto history.
According to the platform, the Dogs Mini app had 53 million users, of which 42.2 million qualified for the airdrop.
With 4.5 million unique wallets that own DOGS, a Telegram community account says only Tether (USDT) on the Tron and Ethereum blockchains “owns more than DOGS.”
While the event may be impressive, Gracie Chen, CEO of Biget's crypto exchange, believes that memecoin may face challenges before it surpasses major meme tokens like Dogecoin (DOGE).
Ease of access is the main difference
Chen described the dogs' success as an “unprecedented benchmark” for the entire market. The executive's scale of acquiring 4.5 million unique wallets in two weeks sets new records not only in the memecoin space, but also in the wider Web3 community.
However, Chen also noted that the integration with Telegram will make it much easier for non-crypto natives to participate in the memecoin ecosystem. The executive said that this greatly contributes to the implementation of ton-based projects. She explained:
“The social component of the Ton ecosystem, combined with the Ton mini application, eliminates many of the barriers associated with blockchain, such as creating a wallet or complicated transaction processes, resulting in rapid user adoption.”
While it sounds like a great way to onboard new users to Web3, Chen points out that most users may have never used crypto before. Bitgate's CEO explained that this could be a “double-edged sword for the project in the long run.”
Chen pointed out that before making predictions about memecoin, it is necessary to evaluate how the audience of crypto-native dogs is. The executive believes that the project needs to fully engage its users in the crypto space in order to sustain its long-term success.
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Top 10 memecoins are down 63%
Despite the success of new memecoins on the market, holders of the largest meme tokens by market capitalization are not so lucky. Blockchain analytics platform Lookonchain reported on September 2 that the top 10 meme tokens have declined by an average of 63% over the past year.
Memecoins such as Book of Meme (BOME), Shiba Inu (SHIB) and Dogwifhat (WIF) had the biggest drops, with all three registering more than 70% price increases.
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