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Prominent investor and fund manager Chris Burniske emphasizes the significant role of meme tokens in the cryptocurrency market. He believes that this phenomenon will contribute to the development of more fundamentally sound projects in the future.
Meme Tokens
Burniske wrote on the social media platform X that the dominance of meme coins in this market cycle necessitates innovation and visibility for other crypto projects. He highlighted that the “compelling function” of meme coins has produced a major positive outcome for the digital asset industry.
“Memecoins will enforce the necessity for infrastructure and application coins to showcase their revenues and will be supported by a more favorable regulatory environment. Governance tokens will transform into cash flow tokens.”
He forecasts that infrastructure and application coins will be evaluated based on earnings and other financial metrics, akin to how traditional finance investors assess stocks. Burniske suggests that coins grounded in fundamentals will begin to accumulate value during subsequent downturns, supported by traditional finance’s evaluation methods for crypto assets.
“Infrastructure and application coins showing a fundamental base will start to accumulate value during the next downturn, supported by traditional financial evaluations of crypto assets.”
The Future of Meme Coins
Despite the high popularity of meme coins, Burniske warns that they lack a foundational basis and, therefore, should never be viewed as financial investments. He cautions that a day of reckoning will inevitably come for this sector.
“Meme coins will have neither a ceiling nor a floor—this lesson will be painfully learned during the next downturn. However, a few select ones like DOGE will become familiar household brands.”
He points out that meme coins possess both positive influences and potential risks within the crypto ecosystem, urging investors to consider these dynamics. Additionally, he notes that the support of traditional financial approaches for infrastructure and application coins could play a vital role in the long-term appreciation of crypto assets. Nevertheless, the volatility and uncertainty of meme coins require market participants to remain vigilant.
