Tesla CEO Elon Musk has compared meme coins to a “casino,” offering a blunt assessment of the speculative crypto sector. 

While recognizing their popularity, he cautioned investors against putting their life savings into these high-risk assets.

Elon Musk Calls Out Meme Coin Hype

During a recent episode of The Joe Rogan Experience podcast, Musk didn’t hold back in his assessment of meme coins. He suggested that expecting to profit from them is as unrealistic as hoping to win at a casino.

“If you expect to win at meme coins, you’re being foolish. You’re not going to win with meme coins. Don’t sink your life savings into a meme coin,” he said.

Yet, Musk has played a pivotal role in meme coin mania. His social media posts have repeatedly triggered explosive rallies, with Dogecoin (DOGE) surging multiple times following his mentions. 

A recent reference to the “Dogefather” sparked triple-digit gains across associated tokens. Similarly, when Musk changed his username to “Kekius Maximus” and “Harry Bōlz,” it fueled price surges for the tokens.

This duality—Musk as both a catalyst and a critic—adds weight to his casino comparison, especially as data reveals the precarious odds for meme coin success.

Meme Coin Boom Loses Steam as Pump.fun Success Rate Falls

The Solana-based meme coin launchpad Pump.fun is an example. According to the data from Dune, the total number of tokens created on Pump.fun has been steadily dropping since late January. Furthermore, the number of tokens graduating to Raydium, a decentralized exchange that provides liquidity and broader exposure, are also declining.

According to an analyst, in Januray, 24,008 tokens successfully reached Raydium. By late February, that number had collapsed to 11,532, marking a significant slowdown.

In the last 24 hours alone, 29,499 tokens were created, yet just 235 of them—roughly 0.80%—managed to graduate. The weekly graduation rate remained dismal, with only 1.08% of launched tokens successfully making it to Raydium.

Even for those that do make it, achieving a significant valuation remains an even rarer feat. Data from CoinGecko shows that meme coins reaching a $1 billion market cap represent only a minuscule fraction of those ever launched. Since Pump.fun’s inception, over 8.2 million tokens have been created, yet not a single one has a $1 billion market cap. 

Only four have crossed the $100 million market cap threshold: Fartcoin (FARTCOIN) at $330 million, AI Rig Complex (ARC) at $230 million, Peanut the Squirrel (PNUT) at $219 million, and Act I The AI Prophecy (ACT) at $185 million. 

Meanwhile, user activity on Pump.fun is also showing signs of fatigue. The latest data indicates that both active and new users have dropped sharply. Thus, the speculative frenzy that once defined meme coin trading appears to be waning.

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