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Balaji | Opinion: Memecoin is a Zero-Sum Lottery

> "There is no wealth creation. Every buy order is simply matched by a sell order"

> "And after an initial spike, the price eventually crashes and the last buyers lose everything"

Source: https://x.com/balajis/status/1880981113721819539

A memecoin is a zero-sum* lottery.

There is no wealth creation. Every buy order is simply matched by a sell order. And after an initial spike, the price eventually crashes and the last buyers lose everything.

* It’s actually negative sum if the platform takes a cut.

Balaji

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Farcaster Warpcast Degen

Interesting perspective on memecoins. It's important to be aware of the risks involved in such speculative assets. Research and caution are key when considering investments in volatile markets.