Social signaling is the name of the game when it comes to memecoins, according to Avalanche founder Emin Gün Sirer. While acknowledging the risks, he sees memecoins as a gateway for newcomers into the crypto world.

In an exclusive interview with Cointelegraph's Ezra Reguerra at Token2049 in Dubai, Gün Sirer highlighted the polarizing role of memecoins across various blockchain platforms. Despite criticisms, he believes they serve a valuable purpose by attracting and engaging users, particularly younger, risk-taking enthusiasts.

Gün Sirer likened memecoins to a form of social currency, where participants signal their involvement and success in the crypto space. Much like displaying a Bored Ape Yacht Club NFT, investing in memecoins signals financial acumen and success in trading.

However, he emphasized that memecoin trading is often short-term and dynamic, requiring constant adjustment to stay ahead of market movements. Success relies on being actively engaged in community trends and making timely decisions.

Acknowledging the element of luck involved, Gün Sirer noted that memecoin trading rewards those who understand and participate in meme culture early on. He highlighted Avalanche's vibrant memecoin community as evidence of the trend's impact on attracting users to the platform.

Despite the risks and volatility associated with memecoins, Gün Sirer sees their role as integral to expanding the crypto community and fostering engagement among enthusiasts.