> For the complete documentation index, see [llms.txt](https://docs.kaichi.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.kaichi.xyz/deepdive/our-why/what-went-wrong-in-the-first-place.md).

# What went wrong in the first place?

## The memecoin dilemma

Recently, some celebrities and content creators have decided to launch their own memecoins, distribute them for free, and push for adoption by their communities. However, what exactly motivates the creator to give away their social capital for free, apart from the prospect of quick profit? 

Most of the time, whenever a celebrity launches a memecoin, it results in short-term value extraction at the expense of the community. In other words, it's a trend towards zero.

Additionally, what exactly motivates the crypto industry to invest in such tokens? 

Memecoin investors bet on various factors: community growth and associated culture, scarcity, exclusivity, speculative hype, utility beyond memes for some, and brand association.

These elements can certainly drive up the token's value, but in the long term, memecoins remain valueless, and only a few select candidates manage to gather enough "cult" following to endure the proof of time.

Among other criticisms, we note that current solutions exhibit three core challenges.

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