#Former Coinbase CTO Warns: Meme Coins Are a Zero-Sum Game#

Former Coinbase CTO Balaji Srinivasan recently warned on social media that meme coins are essentially zero-sum lottery tickets that don't create real wealth. He believes that after their initial price surge, meme coin prices will eventually plummet, leaving the last buyers holding the bag. He advises investors to only invest funds they can afford to lose, and that average users should instead buy assets that hold value over the long term. Srinivasan also notes that some meme coin projects maintain their value through developing use cases, maintaining hype, or community building, but rapid appreciation in a highly politicized environment poses significant risks. He believes that the rise of meme coins is largely driven by word-of-mouth and a series of lies, and that once the truth is revealed or the persona collapses, the value of meme coins could quickly crumble.