Joe Weisenthal, co-anchor of Bloomberg Television’s What’d You Miss?, discussed the speculative nature of meme currencies and their meteoric rise in a recent discussion on X. He likened it to the regular stocks market.
Weisenthal emphasised the distinct allure of meme coins, pointing out that they have the potential to yield enormous profits that conventional investments seldom equal.
“Memecoins fill the demand for extremely asymmetric bets in a way that almost no equity could satisfy,” he said.
He made these remarks in response to talks about the potential of meme coins in the current financial environment, as well as the regulatory issues surrounding them.
The attraction and risks of meme coins
The founder of Ambient Finance, Doug Colkitt, has started a discussion by criticising the nihilistic aspects of the meme currency mania and highlighting legal barriers to wealth accumulation on-chain.
Unlike the present pursuit of low market cap meme coins, he envisioned a future where tiny firms could readily access global finance markets through token issuance.
In response, Weisenthal questioned how likely it would be to establish successful companies in such a deregulated market as opposed to fast flip frauds.
He maintained that because many meme coins lack an underlying profitable venture, they should be regarded as frauds. Still, the occurrence points to a deeper human urge to interact with assets in a more conventional, hands-on way.
Rethinking investment and regulation
The discussion between Weisenthal and Colkitt tackles more significant problems with financial regulation and investing techniques than just the craze for meme coins.
Colkitt acknowledged the high percentage of small business failure and the frequency of scams, but he also maintained that real firm growth might be promoted by a more open market.
In response, Weisenthal cautioned against completely eliminating the rules governing the equities capital market. He hinted that meme coins, for all their speculative character, are a part of a greater conversation about how contemporary financial processes can be cutting off investors from real business chances and development prospects.
