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.

READ MORE:

Senator Cynthia Lummis to Lead Push for Strategic Bitcoin Reserve

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.

Alexander Zdravkov

Alexander has been working in the crypto industry for three years, during which time he has established himself through his active participation in monitoring market dynamics and technological innovations. His interest in cryptocurrencies and new technologies is not just a professional commitment, but a deep personal passion. He follows the news in the sector daily, analyzes trends, and is excited about every new step in the development of blockchain solutions. His enthusiasm drives him to continuously learn and share knowledge, as he sees the future in digital finance and its role in global transformation.