Because the cryptocurrency market seeks a brand new narrative to drive development, celebrity-backed token initiatives have emerged, sparking a development that has elicited blended reactions from seasoned crypto fanatics relating to this new wave of memecoins.
Whereas some argue that superstar tokens can entice new customers to crypto, others consider their speculative nature may mislead shoppers about blockchain’s true worth.
Superstar memecoins can onboard new customers
Those that argue for superstar tokens see them as an efficient on-ramp into cryptocurrency. Solo Ceesay, co-founder and CEO of social pockets Calaxy, believes these tokens could make crypto extra accessible to extra folks. Ceesay mentioned:
“I believe superstar tokens might be vastly useful to the house very similar to generic memecoins as a result of they function the best on-ramp into crypto for many shoppers.”
Ceesay argued that leveraging the likeness of well-known figures makes attracting new customers simpler than the complicated proposition of Web3’s potential.
Ceesay is optimistic about the way forward for superstar tokens, suggesting they may evolve into a big asset class. “Over time, I anticipate superstar cash to solidify themselves as a significant asset class ought to real methods and use circumstances be deployed towards them,” he added.
In the meantime, KuCoin representatives instructed Cointelegraph that whereas superstar tokens can play a job in onboarding customers, traders ought to nonetheless train prudence. They defined:
“Superstar tokens generally is a gateway to crypto for brand new customers primarily on account of their decrease entry factors. Nonetheless, their steadiness of hype and utility can result in potential dangers.”
The representatives additionally emphasised that, as with all types of funding, KuCoin encourages traders to “DYOR” or “Do Your Personal Analysis,” a standard phrase within the crypto neighborhood. Moreover, the KuCoin staff mentioned they maintained a impartial stance on meme tokens.
Associated: Celebrity memecoins highlight crypto’s influencer problem
Dangers and skepticism surrounding celebrity-driven crypto
In stark distinction, Matt Wright, CEO of decentralized artificial intelligence (AI) agency GaiaNet, criticizes the development, viewing it as detrimental to the crypto house. Wright defined:
“They’re dangerous for the house as a result of folks assume that is crypto, however that is simply influencer advertising hooked up to economics.”
He argued that the hype surrounding superstar tokens overshadows the true potential of blockchain expertise. Wright warns that these tokens are unsustainable except they provide substantial utility and innovation. He additionally in contrast the development to the non-fungible (NFT) craze, the place many initiatives lacked substance.
The speculative nature of superstar tokens has additionally raised issues about their long-term viability. Andreas Brekken, CEO and founding father of buying and selling platform SideShift.ai has been significantly vocal in his criticism. He argued that:
“Washed-up celebrities are being recruited in numbers to create pump-and-dump schemes, to squeeze the final pennies from their already nugatory reputations.”
He predicts a grim future for many superstar tokens, asserting that “they’re all going to zero in days, probably months.”
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