According to KookCapitalLLC, SocialFi is deemed as fundamentally flawed and quickly devolves into Ponzi schemes. The critique highlights the rapid transformation of SocialFi initiatives into unsustainable economic models, which are described as '3,3 ponzis' shortly after their launch. This view suggests caution for traders considering investments in SocialFi projects, as these platforms might not provide long-term value according to the source.