Galaxy Digital CEO Mike Novogratz Backs Meme Coins as Crypto Cornerstone

Galaxy Digital CEO Mike Novogratz has reaffirmed his staunch support for meme coins, describing them as the “cornerstone” of the crypto economy. 

This endorsement comes amidst a divided industry where many experts dismiss meme coins due to their origins as internet jokes and perceived lack of utility.

On Thursday, in a social media post on X, Novogratz shared a video in which he expressed his views on the influential narrative of meme coins. He emphasized that despite varying opinions within the industry, meme coins have garnered a significant presence in the market, boasting a combined valuation of approximately $60 billion.

Memecoins – whether you're a fan or not – have become a cornerstone of the crypto economy… In today's market, they're one of the most powerful narratives out there. At @galaxyhq we estimate that memecoins on permissionless blockchains have an aggregate market cap of more than… pic.twitter.com/wihxYIPwxi

— Mike Novogratz (@novogratz) June 12, 2024

Novogratz addressed the widespread notion that meme coins are merely a fleeting trend. He argued that memes possess enduring relevance, and there are two principal strategies to profit from meme coin investments. According to him, the first approach involves selecting a meme with robust community support and a strong humorous appeal. He stated that a successful meme investor must have a “quirky, frickin’ sense of humor” and the foresight to identify which memes will resonate with the public.

Investment Opportunities in Meme Coins

The second strategy, as outlined by Novogratz, involves creating a meme coin. He believes that meme creators are in a unique position to achieve substantial financial gains in the market. This view aligns with the growing trend of individuals and groups launching their own meme coins, capitalizing on the viral nature of internet culture.

Novogratz shared an anecdote about his son-in-law, who is deeply engaged in the meme coin market. He described him as a “great meme investor,” noting his dedication to Dogecoin (DOGE) and Dogwifhat (WIF). According to Novogratz, his son-in-law consistently profits from meme coin investments, demonstrating an intuitive understanding of the market despite never selling his holdings. 

“Yeah, my son-in-law is a great meme investor, I didn’t think there was such a thing until I met the guy, and he just keeps making money, he never sells, he loves Doge, he loves Dogwifhat,” he remarked.

Controversial Opinions Within the Industry

Despite Novogratz’s enthusiastic support, his views on meme coins are not universally accepted within the crypto community. Charlie Silver, CEO of the decentralized finance platform Permission.io, responded to Novogratz’s post by dismissing meme coins as “silly casino chips.” Silver argued that the true cornerstone of the crypto economy has yet to be established.

“Hate to disagree. Meme coins are just silly casino chips. The cornerstone of the crypto economy has yet to emerge,” he wrote on X.

Other industry participants have also expressed skepticism regarding meme coins. A user identified as McGavin labeled meme coins as “inefficient market activities,” echoing a common criticism among detractors.

Despite the criticism, certain meme coins have recently outperformed major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH). For instance, Daddy Tate (DADDY), associated with media personality Andrew Tate, experienced a remarkable 218% surge in the past 24 hours, according to DEX Screener. In contrast, Bitcoin saw a modest increase of just 0.32% during the same period.

These gains in the meme coin market illustrate their volatile yet potentially lucrative nature, which continues to attract a dedicated segment of investors. Novogratz’s support underscores the growing influence of meme coins within the broader crypto economy, despite ongoing debates about their long-term value and utility.