Pakinomist — David Einhorn of Greenlight Capital recently discussed the current state of the cryptocurrency market, noting, “[w]e has reached the “Fartcoin” stage of the market cycle.”
Fartcoin, a digital currency created in late 2021, has seen an incredible rise from a nominal value to over a billion dollars. The hedge fund manager points out that despite its lack of obvious utility beyond trading and speculation, Fartcoin has become the latest meme coin sensation, following in the footsteps of , a cryptocurrency created over a decade ago with a similar purpose of mocking cryptocurrencies and enabling speculative trading. .
Dogecoin, with a dog logo, is currently valued at $55 billion. If it were a stock, it would be around #180 in , surpassing the size of companies such as Travelers (NYSE: ) and Johnson control (SNEEZE:). Einhorn emphasizes that the value of these cryptocurrencies, like other collectibles, lies in market perception, not in any intrinsic value or backing.
Also in the spotlight is the recently launched ‘official’ Trump memecoin and Melania memecoin. As of last Friday, Trump memecoin had a nominal value of $40 billion, and even reached $75 billion over the weekend to surpass Dogecoin. Since 80% of the coins have yet to be issued, this means that President Trump and the organization that supports the coin have $32 billion worth of Trump memecoins and counting. This amount exceeds President Trump’s earnings from his entire business career. Launched on Sunday, Melania memecoin is currently valued at $4 billion.
Einhorn states that the creation of new types of memecoins does not appear to be a difficult task, and he has no problem with individuals taking a chance on cryptocurrencies or other forms of speculative investment. However, his personal preference would be to own a Jackson Pollock painting instead of a Fartcoin. The future of the cryptocurrency market, which may now be moving from the Fartcoin stage to the Trump and Melania memecoin stage, remains uncertain and potentially unstable.
