Vitalik Buterin, the co-founder of Ethereum (ETH), expressed his discontent with the recent surge of celebrity meme cryptocurrency launches. In statements made on June 5, Buterin criticized the trend of celebrities creating memecoins.
Buterin believes that the purpose of a project should be to provide some level of satisfaction and joy to the average participant, even if it may eventually become worthless. He emphasized in a recent post that financialization is only justified if it serves a meaningful purpose.
“I’m quite disappointed with the current trend of ‘celebrity experimentation’. Using financialization as a means to an end is acceptable if the end result is worthwhile (such as healthcare, open source software, art, etc). However, using financialization as the ultimate goal is nauseating,” he stated. “Ashton and Mila’s Stoner Cats project was more respectable than anything we’ve seen in this era of celebrity memecoins – at least it funded a real show. How can we steer things in a better direction?”
Buterin’s remarks came after speculation about Iggy Azalea’s Mother Iggy (MOTHER) token potentially becoming another celebrity experiment in this cycle.
He also outlined three key elements that a celebrity cryptocurrency project should possess in order for it to be deemed ‘respectable’:
1. Have a public good objective that benefits both the celebrity and early supporters. This could be an art project, the celebrity’s preferred charity, or a combination of both.
2. Incorporate an engaging mechanism beyond simply trading tokens. While Buterin is not a fan of token voting DAOs, he acknowledges that they provide individuals with activities to engage in and organize. The DAO should not dictate the entire agenda, but it should have some influence.
3. Create something with lasting value, rather than a short-lived bubble that fades away after a few months. The ultimate goal should be to have a project where participants, even if the tokens become worthless eventually, feel fulfilled for having been a part of it. Regular companies and charities achieve this standard routinely, and our creations should aim to meet that benchmark.
Please note that the opinions expressed in this article are for informational purposes only and should not be construed as financial or investment advice. Investing in cryptocurrencies carries inherent risks of financial loss.