Ex-Coinbase CTO Balaji Srinivasan Criticizes Memecoins as ‘Zero-Sum Bets

Former Coinbase CTO Balaji Srinivasan has sharply criticized memecoins, labeling them a “zero-sum lottery” that create no real wealth and often lead to massive losses when prices crash.

He warned his 1.1 million followers to avoid investing in anything they can’t afford to lose, even as he acknowledged that some memecoins may have use cases. His comments came after the launch of the TRUMP and MELANIA memecoins, both of which saw significant price drops following their initial surges.

Srinivasan cautioned against political-backed tokens, citing the risks of rapid price swings and potential “rug pulls.”

Clever Robot News Desk 22^th January 2025