The CEO of Ava Labs, the company behind Avalanche (AVAX), says he now understands the cultural significance of memecoins.
Emin Gün Sirer in a series of tweets on social media platform Called Memecoins do not necessarily have the same use cases as other cryptocurrency assets to gain value.
According to Sirer, meme tokens are valuable because they serve a specific group of people who like to send social signals to others, similar to how luxury brands work.
“I now understand the cultural importance of coins as just a social signaling mechanism, and I hope you do too. There is no need for a roadmap for a coin to be legal. No lunar math or future promises required. There is no need to pretend to be a tech expert parroting random cryptocurrency ideas you read online as scalability is one big problem to finally solve.
It may be something you own because you like it, and it signals to the world that you are with your chosen crowd.
Is Balenciaga warmer than other clothes? no. But is Balenciaga taking a step back in the ‘clothing space’? Also no. It serves a specific audience very well. “Our presence as a clothing brand is positive.”
But while Ava Labs representatives say meme tokens could find value even without a technical use case, they caution that investors should be cautious when researching the asset class because it is so volatile.
“They are very volatile and this puts them in a space where all assets are already quite volatile. Back in 2015, I used to guide my students through Doge simply because it was fun (a talking dog! Wow!), cheap, and easy to experiment with. Memecoins are only valuable if they are fun.”
Sirer’s statement come This comes after the Avalanche Foundation announced that it was accumulating memecoins for its Culture Catalyst initiative.
“The Avalanche Foundation plans to use Culture Catalyst to purchase and create a collection of select Avalanche-based meme coins to recognize and promote the culture and fun that meme coins symbolize.”
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