Venture capitalist Chris Burniske thinks meme tokens have a purpose that will ultimately lead to the development of fundamentally sound crypto projects.
Burniske tells his 303,400 followers on the social media platform X that he believes the dominance of memecoins in this market cycle is forcing the hand of other crypto projects to innovate and stand out.
According to the crypto veteran, the “forcing function” of memecoins is ultimately a big positive for the digital asset industry.
“Meanwhile, to those worried about ‘infrastructure-and-appcoins,’ everything is a pendulum…Â
Memecoins will force ‘infrastructure-and-appcoins’ to show holders and stakers the revenue, aided by a more favorable regulatory environment. Governance tokens will convert into cash flow tokens.”
Burniske predicts that infrastructure and appcoins will be valued based on their earnings and other financial metrics, similar to how traditional finance (TradFi) investors value stocks.
“‘Infrastructure-and-appcoins’ that show a floor in the next bear due to fundamentals, will start to compound value over cycles, aided by TradFi which is starting to ‘get it,’ and will work to value crypto assets based on traditional approaches.
‘Infrastructure-and-appcoins,’ alongside BTC, will be less glorious than sugar high memecoin gains, but compounding is a hell of a drug for the financially patient.“
As for memecoins, Burniske warns that a day of reckoning will come for the highly popular crypto sector.
“Just as memecoins have no ceiling due to no fundamentals, they will also have no floor – this lesson will be painfully learned in the next bear.
Though, a select few like DOGE, will become household names.”
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