- Hayes believes trading meme coins is “more fun” than low-yield bonds.
- However, cautions on the high-risk involved in trading meme coins.
Arthur Hayes has added his voice to the growing meme mania conversation, stating that they are apparently “more fun” to trade, unlike negatively yielding bonds.
In an interview with Scott Melker in The Wolf of the All Streets podcast, Arthur Hayes referred to Slerf [SLERF] saga, stating,
“I’m going to trade SLERF and BOME and whatever else is coming along because that’s more fun.”
His explanation arose from what he believed to be a demoralizing stance from TradFi amidst currency debasement (lowering the value of fiat money).
As a result, Hayes added that crypto traders would instead go the memecoin way than lose value in TradFi, noting,
“I don’t want to give some dude or woman in a suit to go put my money in a negatively yielding bond.”
However, he cautioned holding meme coins for so long during bull cycles, as they could expose you to immense risk and losses.
Additionally, he warned against riding the wave just because institutions are making statements on the meme coins.
“Trying to intellectualize this too much leads you to probably lose too much money.”
Meme coins: Users vs. network perspectives
Hayes criticized anyone who refers to meme coins as spam to the network, as has been the case for Solana.
“Solana is the chain where the activity is. Activity equals SOL burn; therefore, at least it’s being used for something.”
Solana’s co-founder Anatoly Yakovenko welcomed the meme activity as a “stress test” for the network’s future growth.
Given the possibility of trick-down effects of meme activity, Avalanche [AVAX] and Coinbase’s Base Protocol have hopped into the wave.
Additionally, Arbitrum [ARB] has jumped on the meme train out of FOMO and set up an Arbitrum Memecoin Fund. The fund’s proposal captured the value underscored by Yakovenko and Hayes.
“It is undeniable at this point that memecoins bring new liquidity, users, and attention to the respective blockchain. This, in turn, stress-tests dApps, the chain itself, and most importantly, brings new users and attention to real utility projects.”
Ergo, meme activity can be deemed a win-win situation for users and networks. However, it remains to be seen how Arbitrum’s memecoin experiment will turn out.
