Regulation
Memecoins Reach $60 Billion, Galaxy Digital CEO Highlights Their Influence
Galaxy Digital CEO Mike Novogratz has reaffirmed his unwavering support for meme coins, describing them as the “cornerstone” of the crypto economy.
The endorsement comes amid a divided industry where many experts reject coins due to their origins as Internet jokes and their perceived lack of utility.
In a social media post on X on Thursday, Novogratz shared a video in which he expressed his views on the influential meme coin narrative. He highlighted that despite differing opinions within the industry, meme coins have gained a significant presence in the market, with a combined valuation of around $60 billion.
Memecoins – whether you’re a fan or not – have become a cornerstone of the crypto economy… In today’s market, they are one of the most powerful narratives there is. HAS @galaxyhq We estimate that memecoins on permissionless blockchains have an aggregate market capitalization of more than… pic.twitter.com/wihxYIPwxi
–Mike Novogratz (@novogratz) June 12, 2024
Novogratz addressed the common idea that meme coins are just a fleeting trend. He argued that memes possess lasting relevance and that there are two main strategies for profiting from coin investments. The first approach, he says, is to select a meme that has strong community support and strong humorous appeal. He said a successful meme investor must have a “quirky, fucked-up sense of humor” and the foresight to identify memes that will resonate with audiences.
Investment Opportunities in Meme Coins
The second strategy, described by Novogratz, is to create a meme coin. He believes that meme creators are in a unique position to make substantial financial gains in the market. This view aligns with the growing trend of individuals and groups launching their own coins, capitalizing on the viral nature of Internet culture.
Novogratz shared an anecdote about his son-in-law, who is deeply engaged in the meme coin market. He described him as a “great meme investor,” highlighting his dedication to Dogecoin (DOGE) and Dogwifhat (WIF). According to Novogratz, his son-in-law consistently profits from coin investments, demonstrating an intuitive understanding of the market despite never selling his holdings.
“Yes, my son in law is a great investor in memes, I didn’t think such a thing existed until I met this guy, and he keeps making money, he never sells, he loves Doge , he loves Dogwifhat,” he remarked.
Controversial opinions within the industry
Despite Novogratz’s enthusiastic support, his opinions on meme coins are not universally accepted within the crypto community. Charlie Silver, CEO of decentralized finance platform Permission.io, responded to Novogratz’s post by calling meme coins “dumb casino chips.” Silver argued that the true cornerstone of the crypto economy has not yet been established.
“I hate to disagree. Meme coins are just stupid casino chips. The cornerstone of the crypto-economy has not yet emerged,” he wrote on X.
Others in the industry have also expressed skepticism regarding the meme coins. A user identified as McGavin called the meme coins “inefficient market activities.” echo a common criticism among detractors.
Despite the criticism, some meme coins have recently outperformed major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH). For example, Daddy Tate (DADDY), associated with media personality Andrew Tate, saw a remarkable 218% increase in the last 24 hours, according to DEX Screener. In contrast, Bitcoin saw a modest increase of just 0.32% during the same period.
These gains in the meme coin market illustrate their volatile but potentially lucrative nature, which continues to attract a dedicated segment of investors. Novogratz’s support highlights the growing influence of meme coins within the broader crypto economy, despite ongoing debates over their long-term value and utility.