- The just-created MungerCoin memecoin surged after Charlie Munger’s death but quickly crashed, highlighting the investing legend’s wariness of crypto
- Munger was a vocal Bitcoin and crypto critic, calling them “contrary to the interests of civilization” before his death at 99
- MungerCoin’s pump and dump showed the risks of speculative memecoins, as regulators warn about anonymous projects designed for quick profits
The recently deceased billionaire Charlie Munger was an outspoken critic of cryptocurrencies like Bitcoin. So when a new memecoin called “MungerCoin” suddenly appeared and surged in value after his death earlier this week, many saw it as a final joke at the investing legend’s expense. But the rise and fall of MungerCoin also highlights the risks of putting money into anonymous crypto projects.
MungerCoin Appears and Spikes After Munger’s Death
Just a day after Munger’s death on February 14, a cryptocurrency called MungerCoin materialized on decentralized exchanges. The previously unknown token, which featured an unflattering cartoon of Munger’s face, quickly jumped in price as speculators piled in.
At its peak, MungerCoin hit a market capitalization of over $30 million. But the memecoin’s rally was short-lived. Within hours, it had crashed back down as holders rushed to cash out and take profits. The token now trades at a fraction of a penny, with its anonymous creators having disappeared.
Munger Was Highly Skeptical of Crypto
The launch and pump of MungerCoin was likely intended as a final trolling of the investing legend. Munger was Warren Buffett’s longtime business partner and an outspoken critic of cryptocurrencies before his death at age 99.
He had slammed Bitcoin as “contrary to the interests of civilization” and criticized crypto for producing “nothing.” Munger said in 2018 that trading cryptocurrencies was “just dementia.”
The anonymous creators of MungerCoin clearly wanted to poke fun at Munger’s antipathy towards crypto one last time. But the episode also demonstrates the risks of speculative, anonymous crypto projects.
Memecoin Frenzy Highlights Crypto’s Risks
Thousands of altcoins like MungerCoin have launched in recent years, aiming to capitalize on hype and media attention. Most turn out to be “pump and dump” schemes, where creators hype up tokens before cashing out.
Regulators have increasingly warned traders over the risks of memecoins and altcoins launched anonymously. With no team or company backing them, most projects fold after the initial spike.
MungerCoin’s launch and instant crash after Munger’s death served as the perfect illustration of these projects’ speculative and unpredictable nature. And it showed that even the recently deceased can still be dragged into crypto’s chaos.
Oddity in the Crypto World
The strange saga of MungerCoin was a fitting tribute to Charlie Munger’s legacy of crypto skepticism. Its anonymous creators managed to honor Munger’s critiques by demonstrating just how irrational the crypto markets can be. While MungerCoin provided a final laugh for some crypto speculators, it was also a cautionary tale about putting hard-earned money into digital tokens created as jokes.