#Balaji criticizes meme coins#

Former Coinbase CTO Balaji Srinivasan recently criticized meme coins on social media, calling them "zero-sum lottery tickets" and advising investors to buy assets with long-term value. He believes meme coins do not create wealth, and their prices will eventually crash after an initial surge, leaving late buyers with nothing. He points out that the value of meme coins often rests on hype and lies, lacking real value support. Once the truth is revealed or the persona collapses, their value could quickly crumble. While he acknowledges that some meme coins maintain their value through developing applications, maintaining hype, or community building, their rapid appreciation poses significant risks, and he advises investors to only invest funds they can afford to lose. He uses the recent surge in the official Trump meme coin as an example, noting that it attracted liquidity from other meme coins, leading to their price decline. He argues that Bitcoin, with its use cases and over a decade of resilience, is not a meme coin. He suggests that most people should buy assets that hold long-term value, and believes meme coins should be treated like entertainment gambling in Las Vegas.