Why did Vitalik Buterin criticize the meme coin craze?

Vitalik Buterin, the founder of Ethereum, raised concerns about the current distribution of investments. In particular, it implied that while meme coins like Dogecoin are getting a lot of attention, other critical aspects of the crypto infrastructure are being neglected.

His comments came during an interaction on social platform X with a user named Rocco.

Did Vitalik Buterin criticize the meme coin craze?

Buterin emphasizes the skewed distribution of funds, where some areas may receive more investment than are beneficial. They argue that this imbalance affects the development of the ecosystem, distinguishing between ‘public goods' and competitive sectors. Moreover, it suggests that focusing on certain infrastructures stifles innovation in areas that could use more support.

Turning to the issue of public infrastructure, Buterin revisits his stance on economic challenges. He has long viewed crypto infrastructure as a public good, though it is necessary due to economic principles to invest sufficient funds in such shared resources. Consequently, this perspective sheds light on the systemic issues that hinder the development of critical crypto infrastructure.

The problem is that “infrastructure” is a heterogeneous category, and some infrastructures are public goods while other infrastructures are essentially a zero-sum network effect squeeze game. Today, some categories of infrastructure feel over-invested and others still undervalued,” said Buterin.

Despite Vitalik Buterin's subtle criticism of meme coins, the sector is up 28% in the last 24 hours. The total market cap of meme coins has now reached $52.8 billion.

Read more: 7 Hot Meme Coins and Altcoins Trending in 2024

How crypto solves geographical restrictions

Additionally, Buterin shared his thoughts on Reddit's decision to go public. While the forum praised its efforts to get contributors involved in the IPO, it expressed dismay at the regulatory restrictions that limited participation by non-US residents. According to Buterin, this situation shows the broad limits to which traditional financial systems are subject, which is in stark contrast to the inclusion of the crypto domain.

“That's what crypto is for; it's a global economy,” Buterin said.

Moreover, Buterin's critique extends to the investment frenzy surrounding meme coins. He combines this with the need for more meaningful involvement and support in the crypto infrastructure. His observations highlight the importance of balancing investment to foster a more equitable and functional ecosystem.

In the context of technological developments, Buterin highlights the importance of the Ethereum Improvement Proposal (EIP) 4844. . Analyzing current and projected data transmission costs, Buterin points to the economic benefits of the EIP-4844, which can increase network efficiency and lower operating costs.

Read more: What is EIP-4844?

Buterin's insights provide an overview of the challenges facing the crypto community, from investment differences to regulatory hurdles and technological innovation.