A top crypto investor thinks the memecoin craze might be over soon. Jeff Dorman, Chief Investment Officer at Arca, a digital asset investment firm, predicts a downturn once real-world assets start getting their own crypto tokens.
The Memecoin Meltdown?
Dorman’s prediction, shared on X (formerly Twitter), is simple: when companies, universities, and even sports teams start issuing their own tokens, the demand for memecoins will likely plummet. He suggests investors should bet against memecoins (shorting them) in this scenario. Conversely, he recommends investing in projects related to decentralized finance (DeFi), blockchain technology, and AI.
Mark Cuban’s Question and Dorman’s Answer
Even billionaire Mark Cuban is questioning the value of memecoins. He recently asked Dorman about the actual use and value of tokens issued by institutions like Harvard. Dorman responded by outlining several potential uses:
Real-World Token Use Cases
Dorman envisions a future where tokens offer tangible benefits:
- Universities: Parents could buy a Harvard token at their child’s birth, using it for tuition later or trading it for tokens from other universities. Donors could also get tokens, sharing in the university’s success.
- Cities: A New York City token could offer discounts on subways, airport fast passes, and even priority access to Central Park rentals. It could also act as a new way for the city to raise funds.
- Companies: Disney could offer tokens that provide discounts on Disney+, early access to content, and park perks. They could even share a portion of their revenue with token holders, creating a loyal customer base. This model, Dorman argues, is similar to how Binance (BNB) operates.
- Other Businesses: Companies like Amazon and McDonald’s could use tokens to reward loyalty and create a closer connection with customers, unlike their current shareholder models.
Dorman believes these real-world applications will make these new tokens far more attractive than memecoins, ultimately leading to a decline in the latter’s popularity.
Disclaimer: This information is for general knowledge and shouldn’t be considered investment advice. Always do your own research before investing in cryptocurrencies./p>
