Bitcoin evangelist Adam Back has warned cryptocurrency investors not to bet on memecoins, which have emerged as an extremely vibrant market sector.
Back also stated that market participants should stay away from other altcoins as well. The co-founder of blockchain technology company Blockstream believes that Bitcoin is the only “low-risk, stable-return” cryptocurrency.
reminder, zoom out. prior bull runs had half a dozen -30% draw downs too. we’re at about -26% (-27% earlier).
in fact if anything, recent draw-downs seem to be less deep, but people forget the normal bull market pattern. don’t panic, buy the dip. or buy a bit of $CMSTR with… pic.twitter.com/vBOjFN1TOn
— Adam Back (@adam3us) July 5, 2024
The memecoin segment has recently seen a resurgence thanks to success stories like Pepe (PEPE) and Dogwifhat (WIF). Several celebrity memecoins from influencers like Iggy Azalea have further fueled the speculative frenzy.
Former Goldman Sachs analyst Murad Mahmudov recently opined that market participants should focus on memecoins, but be careful to stay away from small-cap coins.
In March, Joe Weisenthal, co-host of Bloomberg’s “Odd Lots” podcast, attempted to explain the success of meme tokens, arguing that they fill a need for “extremely asymmetric bets.”
However, there are still some big names in the industry who are against the speculative memecoin craze. For example, Vitalik Buterin criticized celebrity tokens for lacking utility and interesting mechanics.
No need to panic
Back, who was cited by Satoshi Nakamoto in the Bitcoin whitepaper, recently weighed in on the Bitcoin market crash, urging holders not to panic and to buy the dip. He also noted that Bitcoin’s recent price drop was actually not as deep as previous bull cycles.
The largest cryptocurrency by market capitalization is currently trading at $55,440 after falling to a five-month low of $53,898.
Source: TradingView
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According to U.today
