Memecoins, previously seen as digital digital community -driven assets, are increasingly used to take advantage of retail investors, with a growing number of scams and celebrity failed to support tokens that increase regulatory concerns.
The $ 4 billion collapse of the Libra (Libra) token (Libra), sponsored by Argentine President Javier Milei, is the latest blow to the sector after eight insider wallets cashed out $ 107 million in liquidityleading to a price decrease of 94% within its launch time.
Raising Memecoin-related scams presents significant regulation challenges, according to Anastasija Plotnikova, co-founder and CEO of blockchain regulatory firm Fideum.
Source: Kobeissi letter
“Memecoins have changed from community -driven social experiments to a chaotic landscape managed by taking value from retail investors,” Plotnikova told cointelegraph, increasing:
“Insider rings, pump-and-dump schemes, and sniper groups have replaced the organic, collected nature of original memecoins, creating an unhealthy field of play.”
Related: Trump, Doge, Bonk etf Approval of ‘more likely’ under the new SEC leadership
Investors between memecoins also need to be identified as truly “collectib” and “clearly fraudulent activities” such as rug pulls that are “not only unethical but also clearly illegal, with a law case to support implementation.”
“In my view, these activities should fall firmly within the jurisdiction of law enforcement agencies,” he added.
More disturbing revelation has emerged since the melting Milei-adopted by Libra token.
Related: Trump to pose first White House Crypto Summit on March 7
Memecoin scandals are not likely to affect US crypto law
While recent Memecoin meltdowns are a negative hit for the investor’s feelings, they may not affect the emerging cryptocurrency regulation in the long run, according to Dmitrij Radin, the founder of Zekret and Chief Fideum technology official.
This is because crypto law has been built using a “lasting” perspective, not just based on previous events, he told Cointelegraph.
It is also important to understand that the Libra rug pull is different compared to the Launch of the official Trump (Trump) and the Official Melania Meme (Melania) TokenIn the last two unlikely to resort to a US regulation response, Radin said, added:
“David Sacks, the US crypto Czar, noted that memecoins are more than one collected. So it should not be regulated as security or anything like that.”
“That’s why I believe Trump and Melania’s coins can be done in a different way than Libra,” he added.
Magazine: Caitlyn Jenner ‘Mastermind’s price list
