Balaji Srinivasan Criticizes Memecoins as Market Cap of TRUMP Token Approaches $10 Billion
Balaji Srinivasan, former CTO of Coinbase, compared memecoins to gambling, stating:
- Market cap of the official Trump memecoin approaches $10 billion.
- Memecoins do not create wealth; each buy order matches a sell order.
- Prices spike initially but crash, leading to losses for late buyers.
- Investors should view memecoins as entertainment rather than serious investments.
- He recommended investing in assets that retain long-term value.
- Bitcoin is distinguished from memecoins due to its use cases and stability over time.
Market interest in the Trump memecoin has led to an 8% decline in overall memecoin liquidity. Major memecoins like DOGE, SHIB, and BONK have dropped by over 10% within 24 hours.