As memecoins experience another downturn, many declare the era over. Yet for Pauline Shangett, CSO of non-custodial exchange ChangeNOW, the memecoin cycle isn’t dead – it’s adapting. In this in-depth conversation with Bitcoin.com, Shangett argues that while most memecoins will fade, others are maturing into full ecosystems. She explores how Web3 must regulate itself, why mass adoption remains elusive, and details her vision for a future crypto architecture built on security and usability.

The “Death” of Memecoins Is Overstated

In recent months, memecoins have been declared a relic. Analysts from CoinTribune argue “the golden age of memecoins is over,” and investors like Cathie Wood have bluntly predicted most will “become worthless.” But Shangett contends such sweeping statements overlook key exceptions that signal evolution, not extinction.

“Yes, we’ve seen hundreds of meme tokens crash or rug,” she acknowledges. “But it’s a mistake to assume the entire category is doomed. Some memecoins are showing real staying power and even growth.”

She points to AI16Z, a Solana-based meme token that began as parody but exploded into a $2+ billion market cap in 2024, rallying over 150% late in the year. “It was dismissed as a joke. But it tapped into broader AI hype and carved out a loyal user base, supported by well-executed tokenomics and marketing.”

Similarly, Floki Inu and Shiba Inu, two projects once considered unserious, have become examples of the meme model maturing. Floki launched Valhalla, a blockchain gaming ecosystem, and signed sponsorships with esports teams. Shiba Inu built Shibarium, a Layer-2 network, and expanded into DeFi through initiatives like ShibaSwap.

“These are not just memes anymore,” Pauline says. “They’re ecosystems with treasuries, dev teams, and user communities.”

This isn’t to say the entire memecoin market is healthy. “Many will fail. But history shows memecoins rise and fall in waves. The current downturn isn’t a death, I think it’s a reset.”

She stresses memecoins move in cycles: boom, crash, rinse, repeat. What Shangett sees is structural recalibration: fewer active tokens, more sustainable projects, and renewed institutional attention.

Even as hype subsided, funds tied to high-profile political networks still saw inflows. Pauline highlights that despite its collapse, the Trump memecoin’s ecosystem retained interest from World Liberty Financial, an entity linked to Trump associates and crypto ventures. In short, while many memecoins will disappear, a core of evolving leaders will shape the next cycle.

The Wild Web3 Frontier: How Meme Markets Fit In

Shangett is candid about memecoins’ speculative nature. Their extreme volatility and lack of utility make them inherently risky.

“These are high-variance bets. Their appeal is speculative, sensational,” she says.

U.S. regulators largely leave memecoins alone. The SEC classifies most as non-securities, freeing them from registration, but also leaving investors unprotected.

The result is a “wild west” of crypto markets. On one hand, memecoins foster creative experimentation, serve as entry points for new users, and fuel token innovation. On the other, rug pulls and dumps are regular occurrences. As Pauline Shangett puts it, “Memecoins teach us about market behavior, hype cycles, and community power, but they also spotlight systemic risk.”

Despite the risks, she believes memecoins will remain part of Web3, provided new layers of oversight emerge.

Without external regulators stepping in, who will enforce quality in the memecoin space? Shangett believes the future lies with self-regulation from within the ecosystem.

1. Exchange-Led Oversight

She highlights how both centralized exchanges (CEX) and decentralized platforms (DEX) are already tightening memecoin listings:

• Centralized Platforms.Implementing stricter KYC for meme project issuers, enforcing token delisting after major fraud events, and incorporating internal insurance and auditing practices.
• Decentralized Tools.Emerging risk-scoring wallets, DEX plugins, and browser extensions flag suspicious contracts and track abnormal flows.

“This isn’t about curbing creativity, it’s about building accountability,” Shangett emphasizes.

2. Industry Coalitions

Beyond platforms, communities and DAOs are beginning to implement voluntary token standards:

• Some require audit certification before listing.Arbitrum DAO maintains a policy that grant applicants must provide independent smart‑contract audits by recognized firms like CertiK or Trail of Bits before being considered for funding. Their Security Audit Reports page lists timely audit results, for example, the February 2, 2025 Trail of Bits audit for the ERC‑20 bridge upgrade, demonstrating this requirement in practice
• Others enforce vesting schedules or treasury safeguards.
  The Optimism Collective enforces structured vesting periods and treasury controls for grant allocations, regularly distributing funds via multi‑signature wallets (e.g., Safe) over 12–24 months. This ensures transparency and limits unilateral disbursement.
• Early adopters are even trialing disbursement bridges that route part of token funding through escrow.Gitcoin Grants has experimented with escrow-based disbursement bridges, where a portion of funding is held in smart contracts and only released once pre-defined milestones are met and verified by community reviewers or designated stewards.

“These collective standards are forming a new, decentralized regulatory ethos,” she suggests.

3. Web3 goes mainstream?

Pressure is also coming from traditional finance watchers. The Lloyds Banking Group recently warned that young people are being targeted with crypto scams and meme-stock imitations. Such concerns have reputational implications, and institutional players see memecoins as a liability to crypto’s image.

“Public scrutiny pushes Web3 to clean up,” Shangett observes. In a world courting partnerships with banks and fintech, self-governance becomes less optional and more imperative. If regulators don’t step in, we must. Exchanges, protocols, investors, they all have a stake in setting the rules. Without that, memecoins stay risky, and the broader legitimacy of crypto suffers.

Web3 and Mass Adoption: Persistent Roadblocks

Beyond memecoins, Pauline Shangett believes broader adoption of crypto remains stalled, primarily due to four entrenched issues.

1. Lack of Understanding
Many people across demographics find cryptocurrency concepts too complex or abstract to grasp. Surveys consistently show that a significant share of the public avoids crypto simply because they don’t understand it. For example, an Australian survey found 43% of respondents had never used crypto due to uncertainty about how it works, and a UK study similarly reported 30% citing lack of understanding as a key reason for steering clear of crypto.

“If users don’t see why crypto matters, fast payments, ownership, programmability, it’s just another shiny tool in a box they never open. They’ll stay away.” Pauline summarized.

2. Poor User Experience
The manual steps: seed phrases, wallet management, gas fees, bridge transactions, turn casual users away. Comparisons to Venmo or Apple Pay are increasingly stark. Until Web3 interfaces offer seamless one-click onboarding and guardrails, mainstream adoption will lag.

3. Web3 vs Web2
As Web3 platforms double down on efforts to achieve mass adoption, streamlining UX, integrating fiat onramps, and partnering with fintechs, they’re increasingly entering direct competition with legacy Web2 financial services. But in this battle, Web3 has a structural vulnerability: its reliance on speculative, high-risk assets like memecoins.

“While Web2 players offer familiar, regulated, and stable experiences, Web3 is still perceived as the domain of hype tokens and unchecked volatility,” Pauline explains. “Memecoins are part of Web3’s culture, but they also expose it to reputational risk.”

As mass adoption becomes a central goal, the memecoin issue becomes more than an internal market concern. It becomes a battleground for legitimacy.

“Until the industry sets stronger quality filters, the gap between promise and perception will remain,” Pauline Shangett warns. “Web3’s future depends on cleaning up its front yard before inviting the world in.”

4. Legal and Regulatory Fragmentation
Crypto legitimacy is still murky. Users wonder: Is it legal in my region? Will it be confiscated?, she says. The global patchwork of laws, varying from total bans to self-regulatory safe harbors, adds friction.

“These uncertainties stop users from exploring crypto features like token ownership or payments.”

All together, these obstacles constrain adoption. But Pauline is optimistic that awareness, UX improvements, and internal accountability are starting to push the narrative forward.

5. Security Fragility
Crypto safety remains a major barrier. Chainalysis and TRM Labs reported over $2.5 billion stolen in 2024, up 21% YoY. Reports from Investopedia/CertiK show nearly $2.47 billion lost to hacks and scams in the first half of 2025 alone.

High-profile breaches like Bybit’s $1.5 billion cold wallet breach (allegedly by North Korea’s Lazarus Group), highlight the threat. “Whether CeFi or DeFi, no platform is untouchable. Until users see robust recovery systems and deposit insurance, crypto remains peripheral.”

Until users see robust recovery systems and deposit insurance, crypto remains peripheral. But this fragility also underscores the importance of resilient infrastructure. Platforms that can maintain operations during high-volatility events set themselves apart, not just by surviving, but by earning long-term trust.

Responsibility in Action: How ChangeNOW Withstood the Storm

For any platform operating in the Web3 financial ecosystem, credibility is tested not in calm, but in moments of market stress. Pauline Shangett underscores this with two high-profile examples that solidified ChangeNOW’s reputation also as a reliable memecoin infrastructure provider.

The Dogecoin Surge, 2021

The memecoin era was catalyzed when Elon Musk’s public endorsements triggered an unprecedented surge in Dogecoin trading activity. As demand overwhelmed the market, multiple major platforms, including Robinhood, Binance, Kraken, and Changelly experienced service interruptions.

ChangeNOW remained operational long after others paused support. At one point, it was among the only exchanges still accepting $ DOGE deposits. Eventually, liquidity constraints also impacted internal systems, yet the team chose not to suspend operations. Instead, they manually processed a significant backlog of transactions, many at a financial loss due to fixed-rate commitments.

Rather than scaling back, ChangeNOW doubled down on user support, maintaining round-the-clock communication for nearly three weeks.

“Can we tag this interview as ‘not safe for HR’?” Shangett jokes. “Some of us practically lived in Slack during that time.”

The incident was ultimately converted into a reputational asset. “We turned it into a case study in accountability,” she adds. “And earned thousands of loyal users.”

The TrumpCoin Frenzy, 2024–2025

A similar stress scenario occurred during the explosive rise of the Trump-themed memecoin. As trading volume spiked and token price volatility intensified, several exchanges again faced technical constraints.

ChangeNOW remained stable throughout. “Unlike Trump’s own statements and actions,” Shangett quips.

It processed the highest daily volume in its history during this period, becoming one of the few platforms able to maintain continuous service.

This operational resilience was not coincidental. As Shangett notes, “Our infrastructure is designed for volatility, and our principle is clear: if we ever face service degradation, we don’t leave users behind.”

Pauline Shangett is the Chief Strategy Officer at ChangeNOW, a leading non-custodial cryptocurrency exchange with over $1 billion in monthly trading volume. With more than seven years of experience in the blockchain industry, she has successfully driven marketing, growth, and strategy initiatives across various stages of product and market development.

Connect with Pauline:

• Telegram: @deepmoist

• X: @deepmoist

• LinkedIn: Pauline Shangett

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