Economist Warns of Memecoin Risks Despite Growing Crypto Optimism

With the new administration embracing cryptocurrency, optimism about the market’s growth is surging.

However, experts are issuing warnings about the risks tied to speculative investments, particularly meme coins.

Nouriel Roubini, an NYU professor known for his 2008 financial crisis predictions, criticized the rise of meme coins like Trump (TRUMP) and Melania (MELANIA) tokens.

Launched shortly before the inauguration, TRUMP briefly got to the 14th spot in CoinMarketCap before crashing. Roubini described such tokens as “manipulative,” arguing that insiders profit while latecomers suffer losses. “These cycles leave retail investors losing big after buying into the hype,” he said.

Former Trump Cabinet member Anthony Scaramucci echoed similar concerns at the World Economic Forum, calling these meme coins “gambling tokens” that undermine the integrity of the presidency. He warned that speculative assets like these often harm inexperienced investors.

Despite his skepticism, Roubini acknowledged the positive potential of blockchain technology and its role in modernizing financial services. While meme coins may trigger volatility, the broader crypto space could still drive meaningful innovation.