Bitcoin evangelist Adam Back has warned cryptocurrency investors against betting on memecoins, which are emerging as an extremely hot market sector.
Back also stated that market participants should also stay away from other altcoins. The co-founder of blockchain technology company Blockstream believes that Bitcoin is the only “low-risk and consistently profitable” cryptocurrency.
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The memecoin segment has seen a resurgence recently thanks to success stories like Pepe (PEPE) and Dogwifhat (WIF). Multiple celebrity memecoins from influential figures like Iggy Azalea have continued to fuel the speculative craze.
Former Goldman Sachs analyst Murad Mahmudov recently opined that market participants should focus on memecoins, but should 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 satisfy a need for “extremely asymmetric betting.”
However, there are still some big names in the industry who oppose the speculative memecoin craze. For example, Vitalik Buterin criticized celebrity tokens for lacking utility and interesting mechanics.
No need to panic
Back, who had the honor of being quoted 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 is 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.
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Source: TradingView
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