'Beware of meme coins; ethereum could be the next big crypto after bitcoin'

Edul Patel, CEO and co-founder of Mudrex, shares his views on Bitcoin, meme coins, Trump's policies, AI in trading, and the future outlook of cryptocurrencies

Edul Patel, CEO & co-founder of Mudrex, a crypto investment platform, believes that the world of cryptocurrency is rapidly evolving, with various factors influencing its growth and development. After Donald Trump's presidential victory, during which he promised to implement crypto-friendly policies and even floated the idea of designating Bitcoin as a strategic reserve, the US has positioned itself as a central hub for digital assets. In an email interview with Kumar Gaurav, Patel shares his views on the future outlook for cryptocurrencies. Edited excerpts:

 

How are Trump’s policies shaping the future of crypto, and will regulatory clarity boost or hinder innovation?

 

The US is a mature market, with 30–40 per cent of the population holding some form of cryptocurrency. However, the lack of uniform regulations across the country has been a major drawback, hindering development and innovation.

  After Trump's presidential victory, as he promised to bring crypto-friendly policies and even floated the idea of designating Bitcoin as a strategic reserve, has positioned the US as a central hub for digital assets. Since then, other countries have also taken clear stances on cryptocurrency, whether by legalising or regulating it. 

 

With the US actively working on developing policies favoring development of digital assets by July, this is also going to set a precedent for other countries in the next few months.

 

With growing legal scrutiny, are meme coins a short-lived trend or a new asset class in the making?

Meme coins derive their popularity primarily from speculative hype rather than inherent utility. Much like penny stocks, they offer a low-cost entry point into the market, allowing many to join communities that drive market narratives. In 2024, they captured about 31 per cent of the market interest. However, investors and traders should exercise caution when approaching these assets as pump-and-dump schemes have been common and make them vulnerable to manipulation.  Although meme coins can generate quick returns during speculative surges, their lack of long-term utility and high volatility increases the risk of significant losses. So investors and traders should do their own research and risk management before investing.   

 

AI is now redefining how investors play in stocks. To what extent are the crypto markets/traders/exchanges using AI for trading and cybersecurity purposes?

Since the mid-2010s, algorithmic trading has become popular in the crypto market. Traders use advanced algorithms and real-time data to execute trades quickly in a volatile environment. This approach cuts down on human error, captures micro-opportunities, and improves risk management. As a result, specialised platforms and exchanges offering algorithmic trading have emerged.

 

AI also plays a key role in cybersecurity. At Mudrex, we use AI to monitor transactions for suspicious activity, flag potential hacks or fraud, and address threats in real-time.

 

The Bitcoin story is already well-known. Which is the next crypto that can replicate such a success, and why do you think so?

According to me, there are a lot of potential tokens with great utility and use cases such as Ethereum, Solana, Ripple and others. However, Ethereum stands out due to its robust smart contract ecosystem and extensive developer community, which continuously drives innovation and widespread adoption. Its planned scaling improvements further solidify its prominence in the crypto space. Solana and Ripple also offer compelling benefits, such as high transaction throughput and efficient cross-border payments. Ultimately, their innovative features and growing ecosystems could reshape financial landscapes similar to Bitcoin, this evolution will likely require considerable time.