Despite broader market improvements and a weaker US dollar, meme coins continue to underperform. However, Robinhood has announced the expansion of its crypto offerings, including new meme coin listings amid regulatory shifts.
Meme Tokens: Decline in Pump.fun 'Graduation Rate'
The Pump.fun platform is experiencing major challenges as the 'graduation rate' of meme tokens has stayed below 1% for four consecutive weeks. This metric refers to the percentage of tokens that successfully transition from the incubation phase to full tradability on a Solana decentralized exchange after meeting liquidity and trading requirements. According to Dune Analytics data, this is the first time the rate has stayed consistently below 1% for an extended period.
Robinhood Expands Crypto Offerings
Despite the troubles meme coins are facing, Robinhood recently expanded its crypto offerings by listing three new meme coins—Pengu (PENGU), Pnut (PNUT), and Popcat (POPCAT). The new listings were announced on March 13, and are part of Robinhood's broader strategy to compete with major exchanges like Coinbase and Binance.US. Johann Kerbrat, vice president and general manager of Robinhood Crypto, stated that the company aims to provide customers with what they want, as long as it can be provided safely.
Political Meme Coins Under Fire
Meanwhile, industry experts are raising concerns about politically endorsed cryptocurrencies, emphasizing the need for stronger investor protections and liquidity safeguards to prevent market collapse. These warnings come after the Libra token, endorsed by Argentine President Javier Milei, suffered a $4 billion market cap wipeout due to insider cash-outs. DWF Labs analysis suggests more robust safety measures, like liquidity locking, are required to prevent similar failures.
Despite overall market improvements, meme coins struggle to gain traction, whereas Robinhood sees it as an opportunity to extend its cryptocurrency offerings. However, strategies involving politically endorsed cryptocurrencies continue to face serious concerns regarding investor protection and security.
