Galaxy Digital's CEO Defends Memecoins Amidst Criticisms from Crypto Industry Insiders
Summary:
Michael Novogratz, CEO of Galaxy Digital, continues to show support for memecoins, regarding them as crucial components of the cryptocurrency sector. He claims that investing in memecoins is earning individuals substantial fortunes and also encourages creating new memecoins as another form of wealth creation. However, many in the crypto industry, including Permission.io's CEO, regard memecoins as simply reckless gambling tokens, and inefficient market phenomena, underlining the divided opinions on their value and longevity.
Michael Novogratz, the chief executive of Galaxy Digital, has once again voiced his backing for memecoins, referring to them as a fundamental aspect of the crypto sector in an entry on X. However, this view isn't universally accepted, with numerous detractors dismissing them as mere frivolous gambling tokens.
"Investing in memecoins is making people rich in two distinct ways", pointed out Novogratz in a video clip from Business Untitled, posted on June 13, where he also hailed them as the "most potent narratives currently."
Novogratz stated that the first method towards amassing wealth from memecoins is selecting the right one. He added, "One way is to embrace the idiosyncratic humour, to identify something that people will find amusing, something they will connect with". Novogratz revealed that even his own son-in-law was actively participating in this niche. He further elaborated, "My son-in-law has proven to be an adept meme investor. I wasn't aware such a thing existed until I encountered him, and he continues to grow his wealth, never selling anything. He's a fan of Doge and Dogwifhat".
Novogratz exclaimed, "The first time you encounter Dogwifhat, you can't help but laugh. Now it's valued at $3 billion". Yet, Dogwifhat has experienced a decline of 24.81% in the last week, as per data from CoinMarketCap.
The second financial strategy Novogratz suggested is to "create a memecoin". On June 3, Galaxy Digital released a report disputing claims that memecoins were short-lived trends, considering their initial approach was focused on wealth creation.
The report stated, "Criticisms have been levelled at memecoins for their ephemeral nature as fortunes are made and lost. However, we have pointed out that memes have always been a part of our culture, as has the aspiration for swift financial gain."
Despite Novogratz's defence of memecoins, several crypto industry insiders didn't express the same enthusiasm. Charlie Silver, CEO of Permission.io, disagreed with Novogratz's stance, commenting, "Regrettably, I beg to differ. Meme Coins are simply frivolous gambling tokens. The true foundation of the crypto economy is yet to come to light". An anonymous crypto commentator, McGavin, added to the criticism, describing "Meme coins as inefficient market phenomena.
Published At
6/13/2024 9:28:00 AM
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