Despite the DOGS token breaking records, a crypto executive warns that its ease of access may ultimately lead to its downfall in the long run.
On Sept. 10, the TON Community page on Telegram announced that the Dogs (DOGS) memecoin on The Open Network has had 17 million users claim its airdrop. The platform dubbed the event the largest token generation event in crypto history.
According to the platform, the Dogs Mini App already had 53 million users, of whom 42.2 million were eligible for its airdrop.
With 4.5 million unique wallets holding DOGS, the Telegram Community account claimed that only Tether (USDT) on the Tron and Ethereum blockchains “have more holders than DOGS.”
While the milestone may be impressive, Gracy Chen, the CEO of Bitget’s crypto exchange, believes that there are challenges that the memecoin may face before it can overtake major meme tokens like Dogecoin (DOGE).
Ease of access is a major differentiator
Chen described Dogs’ achievements as an “unprecedented benchmark” for the whole market. The executive said that the scale of having 4.5 million unique wallets in two weeks sets new records not just in the memecoin space but in the broader Web3 community as well.
However, Chen also highlighted that TON’s integration with Telegram makes it much easier for non-crypto natives to participate in the memecoin ecosystem. The executive said that this greatly contributed to the performance of TON-based projects. She explained:
“The social element of TON’s ecosystem, combined with TON’s Mini Apps, eliminates many of the barriers traditionally associated with blockchain, such as wallet creation or complicated transaction processes, thus driving rapid user adoption.”
While it seems like a great way to onboard new users to Web3, Chen pointed out that most users may have never used crypto before. The Bitget CEO explained that this could also be “a double-edged sword for the project in a long-term game.”
Chen suggested that there’s a need to assess how crypto-native Dogs’ audience is before making projections about the memecoin. The executive believes that for the project to sustain long-term success, it must fully onboard its users into the crypto space.
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Top 10 memecoins are down 63%
While new memecoins hit the market successfully, holders of the biggest meme tokens by market capitalization aren’t so lucky. Blockchain analytics platform Lookonchain revealed on Sept. 2 that the top 10 meme tokens have dropped by an average of 63% in the past year.
Memecoins like Book of Meme (BOME), Shiba Inu (SHIB) and Dogwifhat (WIF) had the biggest drops, with all three recording over 70% price dips.
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