Twitter CEO Jack Dorsey has continued to reject Ethereum as a viable investment. This comes amidst calls for the billionaire to explore other altcoins besides Bitcoin. Dorsey remains a Bitcoin maximalist as he says that Bitcoin is the most important thing to happen in his lifetime.
All this despite the fact that his company Twitter has released 140 NTFs on the Ethereum platform. This followed the news of Twitter releasing NFTs on Ethereum. A user on the platform had said it would only be a matter of time before Dorsey invested in Ether. And the billionaire replied “No” to the user.
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Ethereum is the second biggest cryptocurrency by popularity and market cap. And yet, the CEO still does not believe that Ethereum is worth putting money in. Even going as far as picking a meme coin over ETH.
Jack Endorses HamsterCoin
HamsterCoin is another one of the many meme coins that are currently flooding the market. Responding to a tweet that said Dogecoin was the biggest threat to Ethereum, Dorsey replied that HamsterCoin was a bigger threat.
After the tweet, the price of the meme coin HamsterCoin grew by a tremendous 250% in a matter of hours. This comes as no surprise given the trend of influential people tweeting support for meme coins and seeing the prices surge. The most prominent case of this is with billionaire Elon Musk and his tweets about Dogecoin.
Ethereum struggles to hole $2,000 point | Source: ETHUSD on TradingView.com
HamsterCoin which is a meme coin built on the Binance Smart Chain has no unique use case. There is no groundbreaking technology behind the token. It simply promises financial freedom to its users. The coin does not support any smart contracts. And furthermore, there is no security of decentralization like there is with Ethereum.
Despite the obvious downsides of the coin, investors rushed to accumulate the coin. Pushing the price up in a short period of time.
Are Meme Coins Better Than Ethereum?
The answer to this question is a simple no. Meme coins usually have no use cases besides pumps and dumps. Investors go into these coins looking to make a quick buck. And sometimes, it does not always work out in their favor.
Comparing meme coins with Ethereum usually just helps to give notoriety to the coins. The more you attach a big name to a small coin, the more people pay attention to that coin. So, comparing a coin like HamsterCoin to a coin like Ethereum is a marketing move.
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In periods of bullish sentiment, like when a prominent figure shows support for them, the price usually pumps in a short time. But then comes a sharp crash that leaves investors who didn’t get out on time with worthless coins.
Ethereum is a coin with countless use cases. And with each upgrade, there is more scalability with the network.
Featured image from ShiftDelete, chart from TradingView.com