According to U.Today, Bitcoin advocate Adam Back has cautioned cryptocurrency investors about the risks of investing in meme coins, a market sector that has recently gained significant attention. Back, the co-founder of blockchain technology company Blockstream, believes that Bitcoin is the only 'investment grade' cryptocurrency and advises market participants to avoid other alternative cryptocurrencies. The meme coin sector has seen a resurgence due to the success of coins such as Pepe (PEPE) and dogwifhat (WIF), with celebrity meme coins from influencers like Iggy Azalea further driving speculative interest.
Former Goldman Sachs analyst Murad Mahmudov recently suggested that market participants should focus solely on meme coins, but recommended avoiding microcaps. However, there are notable industry figures who oppose the speculative frenzy surrounding meme coins. For example, Vitalik Buterin, a critic of Back, has also expressed concerns about celebrity meme coins due to their lack of utility and interesting mechanics.
Back, who was cited by Satoshi Nakamoto in the Bitcoin whitepaper, recently commented on the Bitcoin market crash, encouraging holders not to panic and buy the dip. He also observed that Bitcoin's recent drawdowns were less severe compared to previous bullish cycles. The largest cryptocurrency by market capitalization is currently trading at $55,536, after dropping to a five-month low of $53,898.