A16z crypto CTO slams memecoins, say they paint ‘risky casino’ narrative

a16z crypto’s CTO, Eddy Lazzarin, warns that memecoins are reshaping perceptions of the market, likening their resemblance to a risky casino.

Memecoins are more akin to a “risky casino” than to a useful product, as they badly affect the crypto market by making a series of “false promises,” according to a16z crypto’s CTO, Eddy Lazzarin, who shared his thoughts on the sector in X posts.

Lazzarin highlighted the transformative impact of memecoins on the public, saying memecoins “alter how the public, regulators, and entrepreneurs see crypto.”

“At best, it looks like a risky casino. Or a series of false promises masking a casino.”

Eddy Lazzarin

Additionally, Lazzarin expressed concerns about the detrimental impact of memecoins on the industry, stating, “I see the damage every day.”

In a separate post, Lazzarin addressed the fluctuating interest in memecoins, expressing optimism about the development of real products and protocols in the crypto space. However, he cautioned against dismissing the negative consequences of memecoins, stating “we shouldn’t pretend that the casino doesn’t set us back.”

Lazzarin’s statements coincide with reports indicating increased hedge fund interest in memecoins as vehicles for quick profits. According to a Bloomberg report, California-based hedge fund Stratos introduced a fund that includes Dogifwhat, a memecoin featuring a dog mascot, which contributed to a 137% return for the fund in Q1. Additionally, sources reported that Brevan Howard, a New York-based alternative investment manager, has made a “tiny” investment in the memecoin market, although specific details weren’t disclosed.