BitMEX co-founder Arthur Hayes has spoken out in defense of “memecoins,” cautioning against labeling them as “stupid.” According to Hayes, these coins can actually have a positive impact on blockchain networks. In an interview with Real Vision CEO Raoul Pal, Hayes argued that memecoins bring attention to the crypto sector and attract new users and engineers to blockchains. He emphasized that chains that can support this culture will be the ones that hold value, specifically mentioning Solana and Ethereum as well-positioned networks to benefit from the flow of attention.
Hayes pointed to the significant growth in network activity on Solana and Bitcoin following memecoin frenzies. Last year, Solana experienced increased activity after a memecoin craze in November, which led to the launch of non-meme projects on the network. Similarly, Bitcoin saw a surge in development activity after the introduction of BRC-20 tokens and Ordinals. Hayes and Pal believe that memecoins will continue to gain popularity among younger crypto investors who are drawn to the “gaming mentality” prevalent in Gen Z and millennials.
Despite acknowledging the potential benefits of memecoins, industry executives also warn about the associated risks. Franklin Templeton, a US investment firm, wrote in an investor note that while there may be opportunities for quick profits with memecoins, they lack fundamental value or utility. Ethereum co-founder Vitalik Buterin expressed his disinterest in memecoins but encouraged investors and developers to find ways to make them useful or charitable instead of dismissing them.
According to CoinGecko data, memecoins have been the best-performing asset class in the crypto sector in the last month. They have seen a 20% aggregate gain in the last week, outperforming layer-1 network tokens and decentralized finance (DeFi) tokens. Despite the risks involved, memecoins continue to attract attention and generate significant returns.
Memecoins’ performance speaks for itself. They’re proving to be a force to be reckoned with in the crypto sector.
I can’t believe anyone would defend memecoins. They are just a bubble waiting to burst.
I find it hard to believe that anyone takes memecoins seriously. They are just a joke.
Memecoins may not be for everyone, but they’re definitely capturing attention and generating returns. Explore with an open mind!
The recent surge in memecoin activity on Solana and Bitcoin is proof of their impact. They’re driving the development of non-meme projects too.
Arthur Hayes and Raoul Pal bring a fresh perspective on memecoins. We need to embrace innovation, even if it comes in playful forms.