Key Points
- Coinbase CEO Brian Armstrong defended the meme coin sector, even calling Bitcoin “somewhat a meme coin”.
- The meme coin market has faced a significant downturn following the LIBRA token scandal.
Brian Armstrong, CEO of Coinbase, recently stood up for the meme coin sector, even suggesting that Bitcoin could be considered a meme coin. This comes amidst intense scrutiny the sector has faced after the fall of the LIBRA token.
The LIBRA token’s $4 billion pump-and-dump scheme led to a wider market downturn. According to CoinMarketCap data, the meme coin market lost $42 billion from its market cap in the last 30 days.
Critics and Defenders
Critics believe that the LIBRA scandal is the final straw for meme coins. Notable figures like Nic Carter have declared that the sector is “unquestionably over”.
However, Armstrong defended the sector’s role in the cryptocurrency landscape while acknowledging its current challenges.
He stated that while he is not personally a meme coin trader, he recognizes their cultural significance. Armstrong pointed out that meme coins have been around since the early days of crypto, with Dogecoin remaining one of the most popular assets to this day.
Bitcoin as a Meme Coin?
The Coinbase CEO boldly stated that even Bitcoin could be considered “somewhat a memecoin” due to its community-driven nature and the way value is often attributed in financial systems.
Armstrong compared the current landscape with the early internet days, arguing that meme coins could eventually play a meaningful role in the broader blockchain ecosystem. He acknowledged that many meme coins are outright scams, explaining:
“Some meme coins have clearly gone too far lately, to the extent people are insider trading. This is illegal, and people should understand that you will go to prison for this,” Armstrong warned. He urged crypto participants to focus on building long-term value rather than engaging in short-term speculation.
Despite Armstrong’s defense of meme coins, the sector faces massive sell-off following the LIBRA fallout. Many investors are questioning the sector’s viability beyond speculative hype. At the time of writing, the overall meme coin sector records a market cap of $67.4 billion.
The controversy has also impacted high-profile meme coins, including US president Donald Trump family’s meme coins, OFFICIAL TRUMP and Official Melania Meme, both of which suffered double-digit losses in the past week.
Meanwhile, in the past month, popular Solana-based meme coin launchpad platform Pump.fun has recorded around 60% drop in new token launches.
