DeGods founder identifies the cause of the meme coin crisis., 2026/04/01 14:11:26

The founder of DeGods and y00ts projects, Rohun Vora, known by the alias Frank, stated that the primary reason for the crisis in the memecoin market is the lack of new buyers.

According to his observations, market participants tend to secure profits at the first sign of a memecoin price increase, which restricts the ability of projects to grow their market capitalization.

“The issues are not related to ‘conspiracy theories’ or the duration of asset holding. The key factor is the behavior model of early speculators. If an investor purchases about 1% of the supply at a valuation of $100,000, they typically begin to actively sell their position when a six-figure amount appears in their account, thereby driving the price down,” explained Rohun Vora.

He highlighted the imbalance: to counteract the described pressure, the market requires a comparable volume of new purchases—approximately $100,000. However, over the past year, the influx of fresh capital into such assets has remained extremely limited.

Additional pressure is created by the strategy of concentrating supply: traders are actively acquiring significant portions of tokens in projects with a market cap below $1 million, which amplifies subsequent volatility when exiting positions. The very idea of maximizing returns from a single memecoin, which once appeared attractive, is now working in the opposite direction, increasing instability.

As a fundamental solution and way out of the crisis, Rohun Vora identified the need to deepen liquidity—enhancing reserves capable of smoothing sharp movements and preventing the price of memecoins from experiencing severe corrections.

Previously, the Pump.fun platform, operating on the Solana blockchain, announced that it would alter its reward model for launching memecoins: payments will no longer be automatically distributed to all token creators, and a portion of the fees may be redirected to traders.