Twitter CEO Jack Dorsey continues to reject Ethereum as a viable investment. This happens amid calls to the billionaire to explore other altcoins besides Bitcoin. Dorsey remains a bitcoin maximalist as he says that bitcoin is the most important thing in his life.
All this despite the fact that his company Twitter has published 140 NTFs on the Ethereum platform. This followed news that Twitter was posting NFTs on Ethereum. A user of the platform had said it was only a matter of time before Dorsey invested in ether. And the billionaire answered the user with “no”.
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Ethereum is the second largest cryptocurrency by popularity and market capitalization. And yet, the CEO still doesn’t believe Ethereum is worth investing in. It even goes so far as to choose a meme coin through ETH.
Jack supports HamsterCoin
HamsterCoin is another one of the many meme coins that are currently flooding the market. In response 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 HamsterCoin meme coin rose by an enormous 250% within a few hours. This comes as no surprise considering influential people are tweeting their support for meme coins and prices are rising. The most prominent case is billionaire Elon Musk and his tweets about Dogecoin.
Ethereum struggles to punch $ 2,000 points | Source: ETHUSD on TradingView.com
HamsterCoin, a meme coin based on the Binance Smart Chain, doesn’t have a unique use case. There is no breakthrough technology behind the token. It only promises its users financial freedom. The coin does not support smart contracts. Also, there is no security of decentralization like with Ethereum.
Despite the obvious drawbacks of the coin, investors rushed to accumulate the coin. Drive the price up in a short amount of time.
Are Meme Coins Better Than Ethereum?
The answer to this question is a simple no. Meme coins usually have no use cases other than pumps and dumps. Investors invest in these coins for quick cash. And sometimes it doesn’t always work in their favor.
Comparing meme coins to Ethereum usually only helps to give the coins notoriety. The more you associate a big name with a small coin, the more people will pay attention to that coin. So comparing a coin like HamsterCoin with a coin like Ethereum is a marketing move.
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In times of bullish sentiment, such as when a celebrity supports them, the price usually goes up in a short period of time. But then comes a sharp crash that leaves investors who did not get out in time with worthless coins.
Ethereum is a coin with innumerable use cases. And with every upgrade, the scalability of the network increases.
Featured image from ShiftDelete, chart from TradingView.com