Former Coinbase CTO and general partner at venture capital firm Andreessen Horowitz Balaji Srinivasan equated memcoins to gambling.
He called them a “zero-sum lottery” amid the launch of tokens in this category by the Trump spouses – TRUMP from Donald Trump and MELANIA from Melania Trump.
A memecoin is a zero-sum* lottery.
There is no wealth creation. Every buy order is simply matched by a sell order. And after an initial spike, the price eventually crashes and the last buyers lose everything.
* It’s actually negative sum if the platform takes a cut.
— Balaji (@balajis) January 19, 2025
Krinivasan also noted that this approach is acceptable for gambling and professional trading, but it is worth buying assets that retain their value in the long term.
When asked by the crypto community about the essence of Bitcoin as a memcoin, a specialist explainedthat the first cryptocurrency has proven its viability.
The reasons he cited were its nature as a base-level blockchain asset with a hashrate of almost 800 EH/s, no hacks for over 15 years, millions of owners worldwide, and gradual growth.
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Source: Cryptocurrency
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