The CEO of Galaxy Digital, Mike Novogratz, has applauded meme coins, saying they are the cornerstone of the crypto economy.
While speaking in an interview with Business Untitled, Novogratz opined that while some people were still skeptical of meme coins, they remained one of the most powerful narratives in the industry.
“People are making fortunes,” Novogratz said, adding that his son-in-law had invested in meme coins. His sentiments come amid a notable rally in newly-created meme coins such as $BRETT, WIF, and $MOTHER.
Mike Novogratz on the Potential of Meme Coins
Novogratz noted that people were making money from meme coins in two main ways: trading and creating meme coins. He referred to DogWIfHat (WIF), whose market cap has skyrocketed to $2.5 billion.
He further noted that the only thing needed to amass value from meme coins was a sense of humor and picking the right meme coin to buy.
His sentiments echo a recent report by Galaxy Digital on the evolution of meme coins. In the report, the crypto-focused firm noted that while meme coins lacked technical innovation, they pushed the boundaries of blockchain scaling.
“Meme coins have exploded in popularity. We estimate that meme coins on permissionless blockchains today have an aggregate market cap of more than $60 billion,” the firm said.
The report acknowledged that most meme coins lacked underlying fundamentals, subjecting them to notorious volatility. However, the volatile nature catalyzes the industry’s growth as traders desire to make fortunes from these assets.
However, not every crypto community member believes in the meme coin culture. According to the CEO of Permission.io, Charlie Silver, meme coins were “just silly casino chips” and made-up assets used for gambling.
Other traders have also questioned the rise of meme coins in every crypto market cycle, saying they have contributed nothing positive to the industry.
The 2024 Celebrity Meme Coin Mania
Despite the conflicting opinions on meme coins, the industry continues to amass significant growth. The recent rally in meme coins has seen the industry hit a staggering $58 billion market cap, according to CoinGecko.
While Dogecoin (DOGE) and Shiba Inu (SHIB) have retained their positions as the top-largest meme coins by market cap, their performance is currently lull compared to the new entrants.
Mother Iggy (MOTHER), a token associated with musician Iggy Azalea, is up by over 1,300% in the last two weeks alone. While initially lacking fundamentals, the musician recently announced a surprise collaboration with a telecommunication company. Token holders will have a chance to buy phones and mobile plans.
Another meme coin known as Daddy Tate ($DADDY), linked to social media personality Andrew Tate, has also been up 144% in the last 24 hours, according to GeckoTerminal.
Amid the growing popularity of these meme coins, Ethereum co-founder Vitalik Buterin recently questioned the “celebrity experimentation” with meme coins. He opined that celebrities needed to use the funds raised from meme coins to champion good causes.
