Because it allows non-traditional DeFi traders to join the platforms, trading meme coins is good for decentralized exchanges (DEXs). Cointelegraph reports that this was said by Kane Warwick, founder of Synthetix, at the MemeGlobal Sydney conference.
Some people think meme tokens are just a hoax. I think it’s great to speculate. He mentioned that they are valuable.
Some speakers have questioned the utility of this category of cryptocurrencies, but Warwick disagrees with them.
Large volumes of DEX meme tokens, he claims, allow platforms to develop “better solutions”:
“An ecosystem forms around it, money flows, and investments go into infrastructure, even if the funds are invested in a purely speculative instrument that has no utility.”
There are decentralized exchanges that have assets worth $19.4 billion locked up, according to DeFi Llama. More than $5.4 billion has changed hands on DEX in the last 24 hours.
“Tap into more emotions and cultural ideas that are significantly more interesting, understandable and accessible to the average person than DeFi,” Warwick said, comparing meme tokens, NFTs, and GameFi to DeFi.
People don’t give much thought to the economy every day, even though it “affects everyone,” according to the Synthetix founder. Memes, on the other hand, are “the most simplified connection between finance and culture” because of how captivating media like music, movies, and games are.
Meme coins, he said, are “very useful as a hook” to pique people’s interest in decentralization and cryptocurrency.
“This understatement is exquisite. Profitability, revenue, cash flow, and everything else are nonexistent,” Warwick stated.
Meme coins will continue to play an important role in the cryptocurrency market and may even evolve into their own asset class, according to Messari’s head of research Maartje Bas. The “Trojan horse” of the next generation of native consumer apps, she said.
Keep in mind that Ki Yoon Ju, CEO and founder of CryptoQuant, voiced his concerns about the meme token segment’s boom in March. Such endeavors, the expert claims, do nothing but damage to the cryptocurrency market.