Coinbase CEO Brian Armstrong recently shared his thoughts on the increasing interest in meme coins on X (formerly Twitter). He clarified that, aside from a few test trades, he doesn’t actively trade meme coins.
Armstrong suggested that meme coins could eventually play a role in broader use cases as the market evolves.
Coinbase CEO Weighs In on Meme Coins
Armstrong drew parallels between meme coins and early internet phenomena like animated GIFs in his statement. He suggested that while some meme coins may appear frivolous or even problematic today, they could turn into something more valuable over time.
“Even Bitcoin is somewhat of a meme coin (one could argue so is the US dollar, once it was disconnected from gold),” he stated.
According to the Coinbase CEO, meme coins symbolize a future where everything will be tokenized and brought on-chain. This could include posts, images, videos, songs, asset classes, user identities, votes, and more. He suggested that they could eventually help serve purposes that are still too early to predict.
“So we should be open minded about where meme coins are going,” Armstrong remarked.
Nonetheless, Armstrong also addressed some of the negative trends emerging in the meme coin space. He particularly pointed to the rise of insider trading. The latest token being accused of that is LIBRA. The token has drawn substantial criticism and lawsuits against people involved in promoting it.
He warned that such activities are illegal and can lead to serious consequences.
“In every crypto cycle, there is a get rich quick crowd that comes and goes, and learns this lesson the hard way. Don’t break the law! And don’t try to get rich quick,” the CEO noted.
Notably, Armstrong also outlined Coinbase’s approach to meme coins, emphasizing the platform’s commitment to free-market principles.
“If our customers want it, and it’s legal, we aim to let them make that choice for themselves,” he clarified.
However, Armstrong clarified that Coinbase’s role is to provide accurate, unbiased information to help users make informed decisions. While the exchange would remove fraudulent tokens, it would allow low-quality coins to remain. He highlighted user reviews and community feedback as a guide for users.
Coinbase Sparks Meme Coin Speculation with FROC Token Tutorial
Meanwhile, users on X noted that the post came amid rising speculations around Coinbase launching a new meme coin called FROC.
“Coinbase drops a meme coin and 24 hours later Armstrong posts his thoughts about meme coins and their current state,” a user wrote.
Yesterday, Claudia Haddad, a project manager at Coinbase, shared a tutorial demonstrating how to bring token data on-chain. The tutorial used FROC as an example. The meme coin was launched through the Clanker platform.
The Coinbase Wallet X account also reposted that video. Moreover, the exchange added CLANKER to its roadmap today, further fueling speculation.
However, no official endorsement of the token has been made. Despite this, users questioned Coinbase’s intentions.
”A Coinbase created meme, thrown out on their socials, waiting for degens to run with it. There is close to no chance they did this unintentionally, and they’ll push this, just as Binance did for Test,” posted a user.
The situation draws parallels to Binance’s previous experience. Earlier this month, the BNB team shared a tutorial featuring a test token called TST.
This resulted in a significant price surge for the token. However, Binance’s former CEO clarified that this was not an official token launch but merely an example.
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