Crypto leaders debate social shaming to curb memecoin scams

As memecoin traders face mounting losses, crypto leaders are exploring a "social layer" solution, using social pressure to deter insider-driven scams.

Paradigm researcher Samczsun suggested "formally ostracising" individuals involved in meme token scams to make the potential reputational damage outweigh any financial gains.

While some community members support this approach, citing past instances where public opinion influenced legal outcomes, others are sceptical.

Solana co-founder Anatoly Yakovenko calls social layer "pitchforks" problematic, noting they often react to outcomes without predefined rules.

He also noted that scammers could simply switch to a different Key Opinion Leader (KOL).

Similarly, crypto trader Jordan Fish ("Cobie") believes there's no way to “effectively socially shame the shameless,” as those who should be shamed already know what they are doing.

DoubleZero co-founder Austin Federa believes the social layer effectively punishes sandwich attackers and bad products.

However, he thinks it’s nearly impossible to target scammers and influencers because the targets are not part of the existing social layer.

The debate has intensified following high-profile political token scams.

Chainalysis data revealed over 800,000 crypto wallets lost $2 billion after buying the Donald Trump (TRUMP) memecoin.

As well, President Javier Milei’s LIBRA token rose to $4.5 billion after endorsement but plummeted after insiders cashed out over $100 million.

These events have reignited concerns about crypto market integrity.