Key Notes

Key Notes:

Brian Armstrong compared Bitcoin to a meme coin.The collapse of LIBRA, a $4 billion pump-and-dump, recently triggered a meme coin market downturn.Armstrong encourages open-mindedness regarding the future of meme coins despite the ongoing slump.

Coinbase CEO Brian Armstrong recently defended the meme coin sector stating that even Bitcoin BTC $96 656 24h volatility: 1.3% Market cap: $1.92 T Vol. 24h: $17.95 B is “somewhat a meme coin” as the sector faces intense scrutiny following the collapse of the LIBRA token.

LIBRA token’s $4 billion pump-and-dump scheme has triggered a broader market downturn. As per the data by CoinMarketCap, the overall meme coin market wiped out $42 billion from its market cap in the last 30 days.

Critics argue that the LIBRA scandal is the final nail in the coffin for meme coins, with notable figures like Nic Carter declaring that the sector is “unquestionably over”. However, Coinbase CEO has defended the sector’s role in the crypto landscape while acknowledging its current challenges.

Armstrong stated that while he is not personally a meme coin trader, he recognizes their cultural significance. He pointed out that meme coins have existed since the early days of crypto, with Dogecoin DOGE $0.25 24h volatility: 4.3% Market cap: $36.60 B Vol. 24h: $1.03 B remaining one of the most popular assets to this day. “We should be open minded about where meme coins are going, even if some are silly, offensive, or even fraudulent today,” the 42-year-old executive stated.

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. Notably, 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 TRUMP $16.55 24h volatility: 4.6% Market cap: $3.31 B Vol. 24h: $631.91 M and Official Melania Meme MELANIA $1.27 24h volatility: 2.9% Market cap: $190.68 M Vol. 24h: $32.39 M , 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.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.

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