Famous investor and fund manager Chris Burniske stated that meme tokens play an important role in the cryptocurrency market and this will contribute to the development of projects based on more solid foundations in the future.
Meme Tokens
Burniske wrote on social media platform X that the dominance of meme coins in this market cycle has made it imperative for other crypto projects to innovate and stand out.
Burniske, who is well-known in the cryptocurrency industry, stated that the “compelling function” of meme coins has resulted in a huge positive result for the digital asset industry.
“Memecoins will require infrastructure and application coins to demonstrate revenue and will be supported by a more favorable regulatory environment. Governance tokens will turn into cash flow tokens.”
Burniske envisions infrastructure and application coins being evaluated based on their earnings and other financial metrics, taking a similar approach to how investors in the traditional financial sector evaluate stocks.
“Infrastructure and application coins that show a base will begin to accumulate value during subsequent downturns, supported by traditional finance’s valuation of crypto assets through traditional approaches.”
Burniske emphasized that infrastructure and application coins, along with BTC, are lucrative for those who are financially patient, although not as bright as memecoin earnings.
The Future of Meme Coins
Burniske warned that despite the high popularity of memecoins, they are never investments (within the framework of financial investment) as they have no fundamental basis and there will be a day of reckoning for this sector.
“Memecoins have no ceiling and will never have a floor – a lesson that will be painfully learned during the next downturn. However, a select few, such as DOGE, will become household names.”
Burniske stated that memecoins have both positive effects and potential risks in the cryptocurrency ecosystem, adding that investors should take these dynamics into consideration.
Supporting infrastructure and application coins with traditional finance approaches can play an important role in the long-term value increase of crypto assets. However, the volatility and uncertainty of memecoins require caution from market participants.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
