Coinbase (COIN) CEO Brian Armstrong threw an unexpected perspective into the crypto conversation, arguing that even Bitcoin is “somewhat a meme coin.” His reasoning? Bitcoin’s value isn’t solely built on technology or utility—it’s driven by a powerful community narrative, much like meme coins. He pointed out that, at its core, Bitcoin has no central authority backing it, no earnings reports, and no direct utility beyond what people ascribe to it. “Bitcoin is valuable because we all believe it is,” Armstrong suggested, drawing a parallel to how meme coins generate value through cultural relevance.
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His remarks come as the meme coin market faces turmoil following the collapse of LIBRA, a $4 billion pump-and-dump scheme. According to CoinMarketCap, the sector has bled $42 billion in the past month.
LIBRA Implosion Unleashes Market-Wide Meme Coin Sell-Off
LIBRA’s downfall has fueled a broader sell-off. This has intensified skepticism about whether meme coins have any real staying power. Crypto analyst Nic Carter dismissed the sector outright, calling it “unquestionably over.” At the time of writing, the total meme coin market cap has dropped to $67.4 billion, with Trump-themed tokens OFFICIAL TRUMP and Official Melania Meme among the hardest hit. Meanwhile, Solana-based meme coin launchpad Pump.fun has seen a 60% drop in new token launches, indicating that speculative enthusiasm is fading fast.
Armstrong Defends Meme Coins but Warns Against Recklessness
Despite the ongoing sell-off, Armstrong urged the crypto world to stay open-minded. “We should be open-minded about where meme coins are going, even if some are silly, offensive, or even fraudulent today,” he said, comparing their rise to the unpredictable evolution of internet culture. He pointed out that Dogecoin—originally created as a joke—remains one of the most widely held cryptocurrencies today, proving that meme coins can have staying power under the right conditions.
But Armstrong wasn’t blindly optimistic. He acknowledged that many meme coin projects exist solely for speculation, and he issued a stark warning about illegal trading. “People should understand that you will go to prison for this,” he said, referring to insider trading within the space.
With the LIBRA scandal already fueling regulatory scrutiny, Armstrong’s comments suggest that law enforcement could start cracking down on fraudulent activity in the sector.
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