The chief investment officer at a digital asset investment firm believes the popular crypto memecoin sector may collapse if one new trend occurs.
Arca CIO Jeff Dorman says on the social media platform X that memecoins may fall out of popularity once tokens tied to real-world assets start being issued on a wide scale.
“When every company, university, municipality and sports team inevitably issues tokens (sooner than you think), the long and short theses become pretty obvious:
- Long: SOL, DeFi (RAY, AERO, HYPE, JUP, AAVE), AI agents, anything powering wallet/stablecoin growth.
- Short: Memecoins.”
Dorman notes that billionaire and Shark Tank star Mark Cuban asked him last month to explain what value and use such tokens could have.
Said Cuban,
“If Harvard or any of the entities you gave as an example minted and sold a coin, what is the value proposition to the buyer? What is the utility for the buyer?”
Dorman outlined a variety of potential uses for tokens issued by companies, universities and governments that may give the digital assets value.
“Parent buys Harvard coin when a kid is born. Can use it for tuition in 18 years, or trade it for a Yale or Pitt or IU token. Donors and boosters get token, and can participate in the growth of the school via partial revenues from sporting events, or a sliver of endowment returns. Many possibilities…
NYC token: discounts on subway, fast pass through JFK/LGA, first dibs on renting Central Park for b-day parties. Can participate in the upside of NYC through surplus-based dividends. Replaces GO bonds and revenue bonds. No longer need real estate to bet on the growth of a city…
Disney token: discount for Disney plus+, early access to content releases, fast pass at the park. Disney gives 10% of top-line revenue to holders to turn customers into evangelists (customers don’t care about DIS stock – this model of loyalty + quasi-equity token aligns). See BNB.
Amazon: The first Amazon Prime user didn’t get Amazon stock even though she helped fuel its growth. Amazon shareholders don’t even have to be Amazon customers. McDonald’s – same thing. Customers and shareholders have no overlap. Issue part quasi-equity/part loyalty reward token.”
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