Despite the broader crypto market taking a harsh beating in light of the SEC’s continued crackdown on centralized exchange Coinbase, one niche sector of crypto continues to defy all odds – memecoins.
Although recent headline-grabber Pepe’s run petered out as prices stagnated, cryptocurrency speculators have relentlessly continued to search for the next 100x, creating and buying into memecoins based on the current trend.
With the U.S. Securities and Exchange Commission following up on yesterday’s Binance complaint by serving Coinbase it’s own lawsuit, their Chairperson, Gary Gensler, has ironically become the epicenter of the latest memecoin mania.
Once such memecoin has managed an over 6,000% gain and reached a USD$131,000 market capitalization despite only being deployed in the last few minutes.
[Editor’s Note: : Trading memecoins on-chain is highly speculative and risky. Traders can be susceptible to honeypot traps, among other scams. This article does not represent financial advice. Please do your research before investing.]
Are We Due For A Memecoin Comeback?
In late 2021, a hearing was held by the U.S. House Committee on Financial Services to discuss the potential challenges and benefits of cryptocurrency.
During the hearing, a representative remarked that the number one threat to cryptocurrency was itself, and that “Bitcoin could be displaced by Ether, which could be displaced by Doge which could be displaced by Hamster Coin and then there’s CobraCoin.“
“What could Mongoose Coin do to CryptoCoin?” He quipped.
While Mongoose Coin was meant to be a joke, an actual Mongoose Coin, ticker $MONG, was actually deployed – quickly reaching a market capitalization of $2 million, or a 320,000% gain since launch.
Although Mongoose Coin has since returned back almost all of its gain, the parallels that this incident draws with the ongoing complaints lodged by the SEC are clear.
Regardless, on-chain activity has not shown the same response to memecoins as they did in 2021, possibly due to the lack of volatility in the markets, as well as the reality of the SEC’s current activities.
[Editor’s Note: This article does not represent financial advice. Please do your research before investing.]
Featured Image Credit: Chaindebrief