Vitalik Buterin, the co-founder of Ethereum (ETH), expressed his displeasure with the recent surge of celebrity meme cryptocurrency launches. In a statement on June 5, Buterin criticized the trend of celebrities entering the world of memecoins.
According to Buterin, the purpose of a project should be such that even if it becomes obsolete in the future, participants can still find satisfaction and joy in being a part of it. He emphasized in a recent post that financialization is only justified if it serves a meaningful purpose.
“I am quite dissatisfied with the current trend of ‘celebrity experimentation’. I can appreciate financialization as a means to an end if the end is worthwhile (such as healthcare, open source software, art, etc). However, financialization as the ultimate goal is disappointing,” he said. “Ashton and Mila’s Stoner Cats project was more commendable than the celebrity memecoin ventures we are witnessing now in 2024 – at least there was a genuine show being funded. How can we steer things in a better direction?”
Buterin’s remarks followed a report speculating about Iggy Azalea’s Mother Iggy (MOTHER) token potentially becoming another celebrity experiment in this cycle.
In addition, the Ethereum co-founder outlined three essential features that a celebrity cryptocurrency project should possess in order to earn his “respect”:
1. Have a public good goal that benefits both the celebrity and early adopters. This could be an art project, the celebrity’s favorite charity, or a combination of both.
2. Incorporate a fun mechanic that goes beyond simply trading a token. While Buterin is not a fan of token voting DAOs, he recognizes that they provide people with a sense of purpose and organization. The DAO should not dictate the agenda entirely, but it can have some influence.
3. Create something with longevity, lasting more than a few months and providing lasting value. The guiding principle should be to have a project where even if the tokens become worthless eventually, participants will still be glad they were involved. Regular companies and charities achieve this standard routinely, and the projects we build should aim to meet it as well.
Please note that the opinions expressed by the author and individuals mentioned in this article are for informational purposes only and should not be considered financial or investment advice. Investing or trading cryptocurrencies carries a risk of financial loss.