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Blockstream CEO Adam Back, in a recent tweet, openly questions the long-term value of altcoins and memecoins. Back, an early figure in the Bitcoin community, suggested that many alternative cryptocurrencies could eventually head toward zero in value over time.
"I was expecting efficient market hypothesis to kick in with alts and price them at $0," Back said in a tweet.
These comments reinforce a stance Back has maintained for years. Back stated he had made this call of altcoins heading to zero about a decade ago and remains quite surprised that it took this long for the efficient market to catch up with this class of crypto assets.
"But I was making that call a decade ago, so I am quite surprised it took this long for the efficient market to catch up with air tokens, altcoins, memecoins etc," Back said.
The "efficient market hypothesis" refers to a financial theory that indicates that asset prices fully reflect all available information.
Altcoins heading to $0?
This viewpoint is not far-fetched as Back remains a Bitcoin bull, with an April report in The New York Times pointing to him as the most likely pseudonymous creator of Bitcoin known as Satoshi Nakamoto, which he denies.
The Blockstream CEO remains opposed to alternative cryptocurrencies referred to as altcoins, saying they will eventually be priced at $0. In prior times, when asked about his preferred altcoins, Back said, "None of them. I've never owned one. They are all going to zero."
Back's latest comments come during a bearish period when altcoins and several memecoins have seen a significant drop after an earlier rise in the cycle.
Bitcoin itself wasn't immune to the bearishness in the market, falling about 40% from its all-time high of above $126,198. The price fell to a low of $74,197 following a week-long drop before rebounding. At the time of writing, BTC was up 2.59% in the last 24 hours to $76,852.
Dan Burgin
