The 'memecoin supercycle' could fizzle out in the next six months, according to Bitwise CIO @Matt_Hougan.

Memecoins have very long been a quirky and unpredictable segment of the cryptocurrency market. Initially regarded as a humorous or speculative investment, many of these tokens, such as Dogecoin, have gained considerable prominence and incited substantial price upswings

The memecoin supercycle—the phenomenon in which retail and institutional investors have poured their money into Dogecoin and Shiba Inu—could be coming to an end, according to chief investment officer of Bitwise Matt Hougan.

In an appearance on the YouTube channel of the investing website The Motley Fool, Hougan said the “memecoin supercycle” could be brought to a halt by the next six months. If it does, it will most likely be due to the rise of potentially fraudulent tokens like Melania and Libra.

The emergence of scam memecoins could be spelling the end of the memecoin narrative, according to Bitwise CIO Matt Hougan. In an interview with The Motley Fool, Hougan suggested that the memecoin supercycle, which saw a surge in retail and institutional interest in tokens like Dogecoin and Shiba Inu, could be fizzling out.

“I think we might be seeing the memecoin supercycle come to an end,” said Hougan.

The chief investment officer believes that the narrative surrounding memecoins is getting "a bit polluted," particularly with the emergence of scam tokens.

These tokens, which are being created quickly and advertised heavily on social media, are attracting attention for all the wrong reasons. Tokens like $LIBRA and $MELANIA have been accused of having insiders with ulterior motives, such as market manipulation and money laundering.

A recent analysis by blockchain analytics firm Lookonchain revealed a suspicious transaction pattern by the insider team of $LIBRA and $MELANIA tokens. The team reportedly spent 19,846 SOL (worth approximately $2.76 million) to purchase a memecoin called POPE, a token with a market capitalization of less than $150K. Afterward, they sold the POPE tokens for a mere 175 SOL (worth $24K), resulting in a massive loss of $2.73 million.

However, the most concerning aspect was how the money was moved. The loss wasn't a result of a high-risk investment but rather a calculated funneling of $2.73 million through various wallets in what appeared to be a “legal” manner, possibly indicating a sophisticated money-laundering operation. The funds were moved in a manner that made it difficult to follow their exact flow, raising further questions about the legitimacy of the operation.

This event has not only raised concerns about the integrity of certain memecoin ventures but also brought into question the overall health of the memecoin market. With insiders allegedly using these tokens as fronts for shady dealings, it’s becoming increasingly difficult to discern which memecoins are legitimate investment opportunities and which are part of a larger scam.

Despite the rapid decline of POPE's price after the insider team's departure, the remaining token price may still rise if there are users who believe in the project. However, the actions of the insider team suggest that they were not interested in the project's success but rather in using it for their own gains.