Meme Coins Are Causing ‘Damage’ to Crypto, Says Andreessen Horowitz Exec
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We do the research, you get the alpha! Get exclusive reports and access to key insights on airdrops, NFTs, and more! Subscribe now to Alpha Reports and up your game! Go to Alpha Reports A top executive at venture capital firm Andreessen Horowitz (a16z) has compared meme coins to a “risky casino,” suggesting that they’re bad for the long-term outlook of cryptocurrencies. “At best, it looks like a risky casino. Or a series of false promises masking a casino,” Andreessen Horowitz CTO Eddy Lazzarin said on Twitter (aka X), adding that their popularity impacts adoption, regulation, laws, and builder behavior. “I see the damage every day,” he added. “You should too.” Lazzarin’s comments follow multiple waves of meme coin mania. Tokens like Dogwifhat (WIF), Bonk (BONK), and Book of Meme (BOME) have all seen staggering returns in recent months. Memecoins alter how the public, regulators, and entrepreneurs see crypto. At best, it looks like a risky casino. Or a series of false promises masking a casino. This deeply affects adoption, regulation/laws, and builder behavior. I see the damage every day. You should too. — Eddy Lazzarin 🟠🔭 (@eddylazzarin) April 24, 2024 That’s resulted in some hedge funds looking to enter the world of meme coins—including Stratos, which counts among its limited partners a16z co-founder Marc Andreessen. The hedge fund launched a liquid fund holding Solana-based meme coin WIF, which tripled in value to deliver the fund a healthy 137% return. Despite this mainstream attention, Lazzarin argued that meme coins distract from the real goal of cryptocurrencies, focusing on meme-based marketing to boost their value rather than technical innovation or real utility. “Besides undermining the long-term vision of crypto that has kept so many of us in the space, meme coins aren’t very technically interesting.” Lazzarin posted on Twitter. He added…
Filed under: News - @ April 26, 2024 3:22 am