Meme coins have been making major gains over the past few months, with Shiba Inu taking over the market by storm with 100,000,000% gains in the past year. However, not everyone is buying the meme coin hype.
Pro Bitcoin senator, Cynthia Lummis, has stated that she doubts the future of meme coins such as Shiba Inu and Dogecoin. She stated that Bitcoin was the only decentralized digital asset, while all the others had the attributes of a security.
Bitcoin reigns supreme
In an interview with CNBC, the Republican senator stated that investors need to exercise caution when dealing with meme coins. She stated that these meme coins were “issued by a person or an entity that capped a large block of the coin for themselves and then issued others to participate.”
Lummis also noted that meme coins were not as decentralized as they claimed to be. Therefore, these digital assets were less of commodities and more of securities.
Lummis has been a major Bitcoin supporter. She has previously stated that Bitcoin is digital gold. She further stated that Bitcoin could be used as the standard for creating and monitoring other cryptocurrencies.
Lummis as a major bitcoin holder
Lummis made a name for herself by being the first female to be elected as the senator for Wyoming. She has urged regulators in the country to use a solid regulatory framework for Bitcoin to promote investor protection and promote innovations in the sector.
In October, Lummis touched on the issue of inflation caused by the mass printing of US dollars. She stated that Bitcoin and other digital assets could help to solve this issue. In case the US dollar collapses in value, Bitcoin could step in to help the economy.
At the time, she stated that “Thank god for Bitcoin and other digital currencies that transcend the irresponsibility of governments – including our own. That is an indictment of our responsibility to address this looming, predictable, massive issue.”
Lummis also has personal Bitcoin holdings. She earlier revealed she holds 5 Bitcoin bought in 2013 when the primary cryptocurrency was trading at around $300. This year, she increased her Bitcoin holdings by making around $100,000 purchase.
Your capital is at risk.