Andreessen Horowitz CTO Eddy Lazzarin likened meme coins to ‘Risky Casinos’ on April 25, arguing that they deterred genuine builders from the crypto ecosystem due to the high risk involved.
Lazzarin posted to X, stating that meme coins hinder the long-term vision of cryptocurrency, which has kept many of the original builders in the space.
Interest in memecoins will come and go, and I’m optimistic that real products/protocols will develop in the end.
But we shouldn’t pretend that the casino doesn’t set us back. Deterring great founders and giving ammo to politicized regulators has a profound effect. https://t.co/PZNjnSLqfb
— Eddy Lazzarin (@eddylazzarin) April 24, 2024
Andreessen Horowitz CTO Compares Meme Coins to ‘Risky Casinos’
“At best, it looks like a risky casino,” Lazzarin said.”Or a series of false promises masking a casino. This deeply affects adoption, regulation/laws, and builder behavior. I see the damage every day.”
Additionally, he questioned whether meme coins could find a place in more mainstream cryptos like Bitcoin.
In contrast, a recent report suggests hedge funds are being lured into the Meme Coin sector due to the possibility of huge returns.
The a16z executive team received much criticism from the meme coin community, which pointed out the noticeable price tumbling in NFTs.
Imagine traveling in time from 2007 to today–a mere 15 years. You open up FT and read this. It would barely make any sense at all. https://t.co/SSFtZEsW82 pic.twitter.com/r1CTn09C4x
— Martijn Rasser (@MartijnRasser) March 20, 2022
Newer meme coins have experienced major growth and impressive returns, despite being relatively new to the market.
Explosions of Meme Coins Before Release
A week after its launch, The Book Of Memes (BOME) witnessed an unprecedented surge of 30,000% in its price, and its market capitalization reached a billion-dollar figure even before its initial release on centralized exchanges.
The achievement speaks volumes about the potential of meme coins and the growing interest of investors in digital assets.
Another popular meme coin, Dogwifhat (WIF), which launched in November 2023, has surged over the $3 billion cap and is now the third biggest meme coin.
The implosion of Meme Coins After Release
Pro-crypto experts have voiced their opinion against meme coins, ultimately deciding on them as having no real-world value.
Half a dozen meme coins have gained mainstream popularity in this cycle, but several have been involved in orchestrated rug pulls or dumped on the market right after launch.
Stories about traders turning small investments into multi-millions have become a luring tactic to attract inexperienced traders to the crypto market.
Most inexperienced traders ended up losing all their funds due to chasing a false dream.
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