Despite Novogratz’s enthusiastic support, not everyone in the industry agrees with his views on meme coins.
In a world where many crypto enthusiasts and industry experts dismiss meme coins for their perceived lack of utility and origin as jokes or internet memes, Galaxy Digital CEO Mike Novogratz has become a vocal supporter of the asset category.
The billionaire founder and CEO of the crypto investment company reiterated his support for this controversial asset category on Thursday, calling meme coins the “cornerstone” of the crypto economy
A Strong Defense of Memecoins
In a social media post on X, accompanied by a video, Novogratz said that currently, meme coins are one of the “most powerful narratives out there”, despite others having varying opinions. He also pointed out that meme coins in the permissionless market have 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're one of the most powerful narratives out there. At @galaxyhq we estimate that memecoins on permissionless blockchains have an aggregate market cap of more than… pic.twitter.com/wihxYIPwxi
— Mike Novogratz (@novogratz) June 12, 2024
The Galaxy CEO also explained that memes are not a passing trend as others claim. He argued that there are two key ways to profit from investing in meme coins.
First, investors need to make the right call and pick a good meme with strong community support. According to him, a successful meme investor needs to have a “quirky, frickin’ sense of humor” and the ability to foresee which memes will resonate with people.
“One is to have that one quirky frickin ‘sense of humor and say ‘people are going to laugh at that, people are going to love that,’” he said.
The second way to profit, Novogratz said, is to create a memecoin. He believes that meme creators have a unique opportunity to make significant fortunes in the market.
A Great Meme Investor
Novogratz also shared a personal anecdote about his son-in-law, who is actively involved in the memecoin market.
According to Novogratz, his son-in-law is an avid supporter of Dogecoin (DOGE) and Dogwifhat (WIF), and has proven to be a “great meme investor”.
He also praised his son-in-law for his uncanny ability to consistently make money in the memecoin market, even though he never sells his holdings.
“Yeah, my son-in-law is a great meme investor, I didn’t think there was such a thing until I met the guy, and he just keeps making money, he never sells, he loves Doge, he loves Dogwifhat,” he said.
He further noted that Dogwifhat gives off a funny impression that amuses people at first when the name is mentioned but now, it has a market cap of over $3 billion.
A Divisive Opinion
Despite Novogratz’s enthusiastic support, not everyone in the industry agrees with his views on meme coins. Charlie Silver, CEO of Permission.io, a decentralized finance (DeFi) platform, responded to Novogratz’s post by dismissing meme coins as “silly casino chips”. Silver argued that the true cornerstone of the crypto economy has yet to be created.
“Hate to disagree. Memes Coins are just silly casino chips. The cornerstone of the crypto economy has yet to emerge,” he wrote on X.
Another user on X, McGavin, labeled meme coins as “inefficient market activities”, reflecting a common sentiment among critics.
However, despite these varied opinions, some meme coins have recently outperformed major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).
For example, Daddy Tate (DADDY), associated with media personality Andrew Tate, soared 218% in the last 24 hours, according to DEX Screener, while BTC saw a modest increase of just 0.32%.
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