#Former Coinbase CTO: Meme coins are zero-sum lottery tickets#

Former Coinbase CTO Balaji Srinivasan has shared his views on meme coins on social media platform X, arguing that they are essentially zero-sum lottery tickets that do not generate real wealth. He explains that the surge in meme coin prices is often fueled by hype and sentiment, ultimately leading to a crash due to the lack of intrinsic value, resulting in the last buyers losing their entire investment. Although some meme coins manage to maintain their value by developing use cases, sustaining hype, or building communities, the rapid appreciation carries significant risks, particularly in a highly politicized environment. He advises investors to only invest what they can afford to lose, and ordinary users should opt for assets with long-term value preservation. Some analysts point out that the rise of meme coins heavily relies on word-of-mouth and misinformation. Once the truth is revealed or the persona crumbles, their value could plummet rapidly. Therefore, investors should remain rational, avoid chasing short-term gains, and focus on assets with long-term value.