u.today
Bitcoin evangelist Adam Back has warned cryptocurrency investors against placing their bets on meme coins, which have emerged as a red-hot market sector.
Back also claims that market participants should steer clear of other alternative cryptocurrencies as well. The cofounder of blockchain technology company Blockstream is convinced that Bitcoin is the only "investment grade" crypto.
The meme coin sector recently experienced a revival because of such success stories as Pepe (PEPE) and dogwifhat (WIF). Various celebrity meme coins from influencers like Iggy Azalea further fueled speculative fervor.
As reported by U.Today, former Goldman Sachs analyst Murad Mahmudov recently opined that market participants should be focused exclusively on meme coins, but he recommended avoiding microcaps.
Back in March, Joe Weisenthal, cohost of Bloomberg's “Odd Lots” podcast, tried to explain the success of meme cryptocurrencies, arguing that they satisfy the demand for "for extremely asymmetric bets."
Still, there are some prominent industry names that are opposed to the speculative meme coin frenzy. For instance, Back's nemesis Vitalik Buterin has also criticized celebrity meme coins due to their lack of utility and interesting mechanics.
No need to panic
Back, who was famously cited by Satoshi Nakamoto in the Bitcoin whitepaper, recently weighed in on the Bitcoin market crash, urging holders not to panic and buy the dip. He has also noted that Bitcoin's recent drawdowns were actually less deep compared to previous bullish cycles.
The largest cryptocurrency by market capitalization is currently trading at $55,536 after plunging to a five-month low of $53,898 earlier today.