Former Coinbase CTO: Meme coin is a zero-sum lottery, calling for the purchase of long-term value-preserving assets

PANews reported on January 20 that former Coinbase CTO Balaji Srinivasan wrote on the X platform that Meme coins are a zero-sum lottery. It does not create wealth. Every buy order is simply matched with a sell order. After the initial surge, the price will eventually plummet, and the last investor to buy will lose all his money. If the platform still has to take a cut, it is actually a negative-sum game. If you want to gamble moderately for entertainment, no problem. If you are a professional trader, no problem. But most people should buy assets that will preserve their value for a long time. Sometimes use cases can be added to Meme coins, or their value can be maintained indefinitely by keeping them hot. But in general, don't invest money you can't afford to lose. I agree that some Meme coins have stood the test 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. But in a highly politicized environment, a rapid surge in prices is likely to bring trouble. Much depends on what happens after the first big price drop.

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Author: PA一线

This content is for informational purposes only and does not constitute investment advice.

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