Memecoins are like a ‘risky casino’ – Andreessen Horowitz exec
Andreessen Horowitz (a16z), chief technology officer of the US-based venture capital firm, compared the ongoing memecoin boom to a “dangerous casino.”
A16z's Eddy Lazzarin explained in an X-Post that memecoins will disrupt the long-term vision of crypto, which has kept many core builders in the space.
He added that these memecoins are not technically interesting or attractive to developers and will change how the public, regulators and entrepreneurs see crypto:
“At best, it looks like a risky casino. Or a series of false promises hiding the casino. This greatly affects adoption, regulation/laws, and developer behavior. I see the damage every day.
He also talked about whether memecoins could find a place in mainstream investments with other crypto assets like Bitcoin (BTC). The heated debate over the memecoin frenzy comes amid a recent report that suggests hedge funds are being drawn to memecoin investments, looking for higher returns.
The a16z executive received a lot of flak from the memecoin community, which was quick to point out that venture capitalists also saw prices plummet.
Memecoin's frenzy in this bull market has led to explosive growth and huge returns for the two-day-old token.
For example, the Book of Memes (BOME) token surged over 30,000% within a week of its launch and gained billions of dollars in market capitalization before listing on central exchanges.
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Similarly, another popular memecoin, Dogwifhat (WIF), which launched in November 2023, has grown to over $3 billion in market capitalization, placing it in the top three memecoins.
Half a dozen memecoins have grown to gain mainstream media attention this cycle. However, that's only half of the picture, as thousands of other memecoin projects have either staged a carpet pull or been dumped on the market straight after launch.
Stories of traders turning a few hundred dollars into millions often drive hundreds of inexperienced new traders into the crypto market.
However, most traders lose money chasing a memecoin that could change their fortunes. So, like gambling, these memecoins are a way for newcomers to try their luck.
Pro-crypto enthusiasts have commented on memecoins, saying they have no use case or real-world value.
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