Former Coinbase CTO: Meme coins are a zero-sum lottery, calling for the purchase of long-term value-preserving assets
ChainCatcher news, former Coinbase CTO Balaji Srinivasan posted on the X platform that meme coins are a zero-sum lottery game. They do not create wealth. Each buy order simply matches with a sell order. After an initial surge, the price will eventually plummet, leaving the last investors with nothing.If the platform takes a cut, then it is essentially a negative-sum game. If you want to gamble moderately for entertainment, that's fine. If you are a professional trader, that's fine too. But most people should invest in assets that hold value over the long term. Sometimes, use cases can be added for meme coins, or their value can be indefinitely maintained by keeping their popularity.But overall, do not invest money you cannot afford to lose. I agree that some meme coins have indeed stood the test of time and successfully built communities. I would further point out that many of the top 100 cryptocurrencies are actually "ghost chains" and de facto meme coins. However, in a highly politicized environment, a rapid price surge is likely to bring trouble. It largely depends on what happens after the first significant price drop.