Memecoins
Andreessen Horowitz Compares Meme Coins to “Risky Casinos”
Last updated: April 25, 2024, 1:30 p.m. EDT | 1 minute reading
Andreessen Horowitz CTO Eddy Lazzarin compared meme coins to “risky casinos” on April 25, arguing that they deter genuine builders from the crypto ecosystem due to the high risk involved .
Lazzarin posted the review onstating that meme coins hinder the long-term vision of cryptocurrency, which has held back many original builders in the space.
Interest in memecoins comes and goes, and I’m optimistic that real products/protocols will eventually develop.
But we shouldn’t pretend that the casino costs us nothing. Dissuading big founders and giving ammunition to politicized regulators has a profound effect. https://t.co/PZNjnSLqfb
– Eddy Lazzarin 🟠🔭 (@eddylazzarin) April 24, 2024
Andreessen Horowitz CTO Compares Meme Coins to “Risky Casinos”
“At best, it looks like a risky casino,” Lazzarin said. “Or a series of false promises masking a casino. This profoundly affects adoption, regulation/laws and manufacturer behavior. I see the damage every day.
Furthermore, he wondered if coins could find its place in more traditional cryptos like Bitcoin.
On the other hand, a recent report suggests hedge funds are attracted in the Meme Coin sector due to the possibility of huge returns.
The a16z management team received a lot of criticism from the meme coin community, who pointed out the notable price drop. NFT.
Imagine traveling back in time from 2007 to today – just 15 years. You open FT and read this. That would make almost no sense. https://t.co/SSFtZEsW82 pic.twitter.com/r1CTn09C4x
– Martijn Rasser (@MartijnRasser) March 20, 2022
Even newer coins have seen significant growth and impressive returns, despite being relatively new to the market.
Meme coin explosions before release
A week after its launch, The Book of Memes (BOME) experienced an unprecedented 30,000% increase in price and its market capitalization reached $1 billion even before its first release on centralized exchanges.
This achievement speaks volumes about the potential of meme coins and the growing investor interest in digital assets.
Another popular coin, Dog Hat (WIF)which was launched in November 2023, has surpassed the cap of $3 billion and is now the third largest coin.
The implosion of Meme Coins after their release
Pro-crypto experts have voiced their opinion against meme coins, ultimately criticizing them for having no real value.
Half a dozen meme coins gained popularity during this cycle, but several were involved in orchestrated rug pulls or dumped on the market right after their launch.
Stories of traders turning small investments into millions have become a luring tactic to lure inexperienced traders into the crypto market.