Former Coinbase CTO: Meme coin is a zero-sum lottery, calling for buying assets that retain value over the long term

Reprinted from panewslab

01/20/2025·3days ago

PANews reported on January 20 that former Coinbase Chief Technology Officer Balaji Srinivasan posted on the X platform that Meme currency is a zero-sum game lottery. It doesn't create wealth. Every buy order is simply matched with a sell order. After an initial surge, the price will eventually plummet, and the last investor to buy will lose all their money. If the platform still takes a commission, it is actually a negative-sum game. If you want to gamble in moderation for fun, no problem. If you are a professional trader, no problem. But most people should buy assets that will hold their value over the long term. Sometimes use cases can be added for meme coins, or their value can be maintained indefinitely by keeping them popular. But in general, don't invest money you can't afford to lose. I agree, there are definitely some meme coins that have withstood the test and successfully built communities. I would further point out that many of the top 100 cryptocurrencies are actually “ghost chains” and de facto meme coins. But in a highly politicized environment, a rapid spike in prices could spell trouble. A lot depends on what happens after the first big price drop.