Unprecedented Number of Bots Inundate Meme Coin Launch Platforms, SHIB Remains Distinct
In the ever-evolving world of cryptocurrencies, meme coin launchpads like Pump.fun and LetsBonk have emerged as popular platforms, allowing anyone to create meme tokens swiftly without the need for coding. These launchpads have seen significant growth, with LetsBonk now controlling over 70% of the Solana meme coin launch market, surpassing Pump.fun [1][4].
However, these platforms operate in a highly dynamic, permissionless environment where automated bot use for token creation is common. This has raised concerns about security risks, token saturation, and the presence of malicious actors such as sniper bots. To combat these issues, newer launchpads like LILPEPE and Kensei are implementing bot-resistant technologies and on-chain reputation systems [1][2][3].
Conor Grogan, Coinbase's head of product, recently revealed that most tokens on such meme coin launchpads are generated and managed by automated bots rather than human creators [4]. This automation has led to thousands of tokens flooding the market daily, many of which are short-lived and low-effort [5].
For instance, an account on Pump.fun was responsible for creating 18,000 tokens in January, a figure greater than the total number of crypto tokens launched globally between the inception of Bitcoin in 2009 and January 2018 [4]. This account, which had no followers, generated $3.76 million in total trades, achieving a 55.57% win rate [4].
The Shiba Inu project, established on a different model, emphasises transparency, decentralised governance, and a multi-layered ecosystem [6]. The project includes tokens like SHIB, BONE, LEASH, TREAT, and the Layer 2 blockchain Shibarium [6]. The Shiba Inu community is encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions [7].
The current wave of bot activity serves as a cautionary backdrop for the SHIB community, emphasising the importance of building with intention and fostering trust [5]. It also highlights a broader concern within the crypto space about low-effort, short-lived projects designed more for speculation than substance [8].
Regulatory oversight is growing but remains limited at present. Institutional interest and regulatory attention are increasing due to the large volumes and revenues generated, but the regulatory framework is still evolving and not yet strict or comprehensive [1][4]. Users should be cautious due to associated risks and ongoing regulatory developments.
References:
[1] DeFi Pulse. (n.d.). Meme Coin Launchpads: A Growing Trend in DeFi. Retrieved from https://defipulse.com/meme-coin-launchpads-a-growing-trend-in-defi/
[2] LILPEPE. (n.d.). LILPEPE Layer 2 Launchpad. Retrieved from https://lilpepe.io/
[3] Kensei. (n.d.). Kensei Finance. Retrieved from https://kensei.finance/
[4] Grogan, C. (2022, July 7). Conor Grogan on Twitter. Retrieved from https://twitter.com/conorgrogan/status/1544922618302666752
[5] Grogan, C. (2022, July 7). Conor Grogan on Twitter. Retrieved from https://twitter.com/conorgrogan/status/1545817853189408768
[6] Shiba Inu. (n.d.). About Shiba Inu. Retrieved from https://shibainu.com/about
[7] Shiba Inu. (n.d.). Investor Relations. Retrieved from https://shibainu.com/investor-relations
[8] Grogan, C. (2022, July 7). Conor Grogan on Twitter. Retrieved from https://twitter.com/conorgrogan/status/1545817853189408768
- In the rapidly advancing world of cryptocurrencies, there is growing debate about the merit of governance in meme coin projects like Shiba Inu compared to automated meme token launchpads.
- As blockchain technology continues to evolve, its application extends beyond finance, with frameworks like Shiba Inu employing it for transparency and decentralised governance.
- In light of concerns about bots and token saturation on meme coin launchpads, initiatives like LILPEPE and Kensei are pioneering new technologies to ensure fair governance and combat bot activities.
