{"id":20467,"date":"2025-01-20T15:54:20","date_gmt":"2025-01-20T13:54:20","guid":{"rendered":"https:\/\/forklog.com\/en\/former-coinbase-cto-criticizes-meme-coins-as-a-negative-sum-lottery\/"},"modified":"2025-01-20T15:54:20","modified_gmt":"2025-01-20T13:54:20","slug":"former-coinbase-cto-criticizes-meme-coins-as-a-negative-sum-lottery","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/former-coinbase-cto-criticizes-meme-coins-as-a-negative-sum-lottery\/","title":{"rendered":"Former Coinbase CTO Criticizes Meme Coins as a &#8216;Negative-Sum Lottery&#8217;"},"content":{"rendered":"<p>Former <span data-descr=\"chief technology officer\" class=\"old_tooltip\">CTO<\/span> of Coinbase and general partner at Andreessen Horowitz, Balaji Srinivasan, has criticized the meme coin segment amidst the hype surrounding <a href=\"https:\/\/forklog.com\/en\/news\/what-to-know-about-donald-trumps-memecoin-surge-supply-and-industry-impact\">TRUMP<\/a> and <a href=\"https:\/\/forklog.com\/en\/news\/melanias-meme-coin-leaves-traders-pining-for-gary-gensler\">MELANIA<\/a>.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">A memecoin is a zero-sum* lottery.<\/p>\n<p>There is no wealth creation. Every buy order is simply matched by a sell order. And after an initial spike, the price eventually crashes and the last buyers lose everything.<\/p>\n<p>* It\u2019s actually negative sum if the platform takes a cut.<\/p>\n<p>\u2014 Balaji (@balajis) <a href=\"https:\/\/twitter.com\/balajis\/status\/1880981113721819539?ref_src=twsrc%5Etfw\">January 19, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The entrepreneur described such assets as a &#8220;negative-sum lottery,&#8221; where participants trade among themselves while platforms take commissions. He likened buying meme coins to gambling and noted that they should be approached accordingly.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;[In meme coins] there is no value creation. Every buy order is simply accompanied by a sell order. After the initial spike, the price eventually falls, and the last buyers lose everything,&#8221; Srinivasan explained.<\/p>\n<\/blockquote>\n<p>In his view, a broad range of crypto investors should focus on assets that retain value in the long term.<\/p>\n<p>Analysts at Bernstein, on the other hand, <a href=\"https:\/\/www.theblock.co\/post\/335724\/bernstein-trump-memecoin-paradigm-shift\">noted<\/a> the launch of the &#8220;presidential&#8221; meme coin as a sign of a more favorable period for cryptocurrencies worldwide.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;This marks a new era of regulation where governments view cryptocurrency as a technology for direct engagement with the masses. This could sway some politicians towards a friendlier stance on digital assets,&#8221; the firm stated.<\/p>\n<\/blockquote>\n<p>Bernstein also highlighted the benefits for American developers, who may no longer fear launching their own tokens in a previously problematic jurisdiction:<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;Given that the previous US regulatory regime was notable for suppressing [crypto app creators] and enforcing measures against token activities, the launch of a presidential asset is a significant social signal for American developers.&#8221;<\/p>\n<\/blockquote>\n<p>Back in January, activist Ryan Fournier <a href=\"https:\/\/forklog.com\/en\/news\/controversial-activist-offloads-50-of-tiktok-memecoin-supply\">faced<\/a> community criticism for selling half of the meme coin supply dedicated to lifting the TikTok ban in the US.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Former CTO of Coinbase and general partner at Andreessen Horowitz, Balaji Srinivasan, has criticized the meme coin segment amidst the hype surrounding TRUMP and MELANIA. A memecoin is a zero-sum* lottery. There is no wealth creation. Every buy order is simply matched by a sell order. And after an initial spike, the price eventually crashes [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":20466,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1161,1138,26],"class_list":["post-20467","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-memes","tag-opinions","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"28","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/20467","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=20467"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/20467\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/20466"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=20467"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=20467"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=20467"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}