July 18, 2024
1 Solar System Way, Planet Earth, USA
Crypto

Galaxy Digital CEO believes meme coins have more to offer than laughs

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Meme coins, often inspired by Internet jokes or cultural phenomena, have been dismissed by many industry experts for their apparent lack of usefulness. However, Galaxy Digital CEO Mike Novogratz believes these meme tokens have a strong narrative that captures investors' attention beyond simple humor.

“Meme coins, whether you are a fan or not, have become the cornerstone of the crypto economy. In today’s market, they are one of the most powerful narratives out there,” Novogratz said in a recent mail at X, adding that meme coins on permissionless blockchains have a combined market capitalization exceeding $60 billion.

In an accompanying video, Novogratz also outlined two potential ways to profit from meme coins: one is to choose humorous memes and the second is to create memes.

He suggests that successful investors need a “quirky sense of humor” to predict which memes will resonate with people and become successful investments.

The second way is for memecoin creators. Novogratz said meme creators could make big profits by launching their own meme coins.

He also mentioned his son-in-law's success with Dogwifhat and Doge. Initially skeptical about investing in memecoins, Novogratz said he was surprised by his son-in-law's success in simply having these meme coins, suggesting that a well-crafted meme can translate into financial gain.

“You know, Dogwifhat, the first time you see it, you laugh, it's worth $3 billion now,” Novogratz said.

Novogratz's bullish stance on meme coins faces pushback from the industry. Commenting on Novogratz's post, Charlie Silver, CEO of Permission.io, said that meme coins are “just dumb casino chips.” Silver believes that the true foundation of the crypto economy is yet to be built.

Novogratz's statements come amid the ongoing controversy surrounding celebrity meme coins. Many crypto figures have publicly shared their opinions on the movement.

Notably, Ethereum co-founder Vitalik Buterin criticized Recent celebrity meme coins, such as Iggy Azalea's Mother Iggy. He argued that projects should prioritize social value and user engagement over celebrity and early investor enrichment.

Despite skepticism from some industry leaders, meme coins like Daddy Tate (DADDY) have shown remarkable performance, rising 218% in the last 24 hours. However, analysts have recently warned about the potential insider trading risks associated with both. MOTHER and DAD.

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