Memecoins

Why Meme Coins Could Create a Legal Minefield for Celebrities

Published

3 months ago

24 June, 2024

Andrew Tate Promoted DADDY Meme Coin Flips, Iggy Azalea's MOTHER

With over 500,000 tokens launched in May alone, the volume of meme coin offerings has increased significantly. Thanks in part to sites like Pompe.fun, anyone can now easily spin a token symbol, upload an image, and flip a meme coin. And thanks to social media and trading bots, it’s also easier than ever for meme coins to go viral and make huge profits.

Given all of this, it’s not at all surprising that we’re now seeing a new wave of celebrities jumping into the crypto space with their own tokens. And this massive influx of new celebrity coins also comes with a myriad of legal risks.

Last week, the crypto space was abuzz with heated debate over whether Donald Trump’s son Barron was behind the project. DJT meme piece on Solana. The creator of this token – the infamous “Pharma Bro” Martin Shkreli – claimed in a Twitter Spaces marathon that this meme coin was the official token of Donald Trump. But there is still no official confirmation on this.

Crypto celebrities are nothing new. Over the last cycle, we’ve seen dozens of A-list celebrities accept lucrative sponsorship offers from crypto projects and platforms. Due to the collapse of FTX and other platforms, many celebrities have faced a difficult situation. tsunami of trials accusing them of using their influence to mislead consumers about the dangers of crypto.

This cycle, a new meta-celebrity coin has emerged, with lower-tier celebrities using coins to grow their following, make massive gains, and find some relevance the following years, far from the spotlight.

And celebrity coins aren’t just released by “B-list” celebrities like Catilyn Jenner And Iggy Azalea– we’re even now seeing Z-list celebrities dropping coins.

During peak market cycles, fraudsters and even well-meaning celebrities can get up on their skis and drop chips with promises they have no realistic chance of ever keeping. As a result, crypto newbies and even overzealous crypto-natives can fall prey and suffer huge losses due to fraudulent token drops.

Crypto tokens offer an incredible vehicle for uniting large communities around viral memes, and potentially giving their holders a chance to generate life-changing wealth in the process. So it’s no surprise that celebrities have turned to meme coins to increase their reach and their wallets too.

But for all that, meme coins have the potential to “symbolize attention,” as one crypto influencer recently observed. Mando– meme coins can also be misused to manipulate markets and commit fraud.

We are about to enter what investors affectionately call Raoul Pal as the “banana zone” of this crypto cycle – that point where anything and everything has the potential to go parabolic. As we learned during the late 2021/early 2022 NFT market cycle, this is also the stage where scammers and opportunistic celebrities rush into the crypto community to pump and dump tokens in order to make massive gains . Unfortunately, there is a strong incentive for fraudsters to exploit this stage of the market cycle and prey on consumers for quick and easy profits.

At the height of the Banana Zone, founders may become blind to the legal risks of falling meme coins. In their quest for ever greater profits, founders forget or intentionally ignore the fact that they can be sued and even criminally prosecuted for the outrageous promises they make in connection with coin offerings.

As we move deeper and deeper into the banana zone, it’s a good time to remind influencers and celebrities of the legal pitfalls that can come with launching and promoting meme coins. An important point to make is that regardless of whether a celebrity coin project is considered a commodity or a security, its founders nonetheless expose themselves to potential civil or criminal liability if they make fraudulent statements about the token to increase sales.

Celebrities who promote or launch meme coins can face significant civil liability if their actions are perceived to have manipulated markets. Celebrities who promote or create meme pieces may also face charges of fraud and making false statements if it can be proven in court that they made false or misleading statements.

In order to succeed in a civil fraud action, consumers generally must prove that a celebrity misrepresented a material fact about their token – knowing that the statement was false or intended to deceive – and that the The consumer relied on this statement to his detriment.

Celebrities promoting meme coins can even be held liable under securities laws, which impose strict regulations to protect investors from fraud and market manipulation. Whether a meme is considered a security or commodity depends on several factors beyond the scope of this article. But regardless of whether a meme coin is a security subject to SEC regulation or a commodity under the CFTC’s jurisdiction, fraudulently marketing meme coins can expose its founders to significant regulatory, civil and civil penalties. and even criminal.

When evaluating whether a token is a fraudulent pump and dump scheme, regulators and prosecutors will generally consider the following factors: (1) the specific characteristics of the token, including the intent behind the coin’s launch even ; (2) how the token is marketed, including potential promises of huge returns; and (3) the team’s representations about the future usefulness of the token.

Clearly, the more the promises of massive gains and future utility are exaggerated and under-delivered, the more likely these tokens are to be subject to regulatory and law enforcement scrutiny.

Although meme coins still offer new and uncharted waters for regulators, prosecutors are coldly and methodically evaluating these token offerings under existing criminal fraud laws. If a celebrity coin looks and sounds like a “pump-and-dump,” then there’s a good chance a prosecutor can prove the essential elements of a scheme to defraud consumers.

To successfully prosecute a celebrity in a coin-pumping and dumping scheme, the government must prove: (1) the celebrity hatched a plan to defraud investors; (2) the celebrity acted with the specific intent to defraud investors out of money or property; (3) the celebrity used interstate cables, such as telephone lines and Internet connections, to carry out the scheme; and (4) the celebrity scheme to defraud the relevant interstate or foreign commerce.

It can be quite easy for prosecutors to prove these elements, if for example, a celebrity makes false statements about the token’s track record or anticipated earnings in an attempt to generate hype and attract buyers. Market manipulation through coordinated efforts to drive up the price or create the illusion of high demand for the token may also be evidence of a fraud scheme.

If celebrities or founders sell their tokens after the price has been artificially inflated, thereby causing the price to fall rapidly, and such market manipulation results in significant losses for other holders, then this may be further evidence of a fraud scheme.

It should also be noted that willful ignorance or willful blindness of founders regarding the illegality of their conduct is generally not a viable defense to fraud prosecution.

While meme tokens can attract attention, connect communities, and create opportunities for significant financial gain, they also open the door to widespread fraud and manipulation. The ease of launching meme coins, combined with the viral nature of social media, makes it crucial for consumers to be vigilant and educate celebrities from the ground up about the legal ramifications of their actions.

Disclaimer: The information provided in this opinion article is for informational purposes only and should not be considered legal or financial advice. Readers should consult their own legal and financial advisors to understand the specific implications and regulations applicable to their situation. The opinions expressed in this article are those of the author and do not necessarily reflect the opinions of affiliated organizations, celebrities, meme tokens, or brands.

Edited by Andrew Hayward

Fuente

Memecoins

Memecoins dominate major derivatives in terms of open interest | Flash News Detail

Published

2 months ago

1 August, 2024

TokenTalk Staff

Bitcoin Dominance May Have Peaked, Ethereum ETF Could Trigger Altcoin Momentum

Disclaimer

Disclaimer: Blockchain.news provides content for informational purposes only. Under no circumstances shall blockchain.news be liable for any direct, indirect, incidental or consequential damages arising out of the use of, or inability to use, the information provided. This includes, but is not limited to, any loss or damage resulting from decisions made based on the content. Readers should conduct their own research and consult professionals before making any financial decisions.

Fuente

Memecoins

Have a profitable August with Shiba Inu and Mpeppe (MPEPE) Don’t miss the winnings

Published

2 months ago

1 August, 2024

TokenTalk Staff

Have a profitable August with Shiba Inu and Mpeppe (MPEPE) Don't miss the winnings

August offers investors a unique opportunity to capitalize on the potential gains offered by Shiba Inu (SHIB) and Mpeppe (MPEPE)These two memecoins take advantage of the viral nature of internet memes and popular culture, attracting a diverse and enthusiastic audience. In this article, we’ll look at why Shiba Inu (SHIB) and Mpeppe (MPEPE) are poised for gains this month and why you shouldn’t miss out on the potential profits.

The viral power of memecoins

Memecoins have the inherent ability to leverage the viral nature of internet memes and popular culture references. This can lead to rapid spread of the cryptocurrency’s brand and message across various online platforms, potentially appealing to a broader and more diverse audience. Shiba Inu (SHIB) and Mpeppe (MPEPE) are great examples of how this viral potential can translate into substantial community growth and market presence.

Shiba Inu: riding the wave of popularity

Shiba Inu (SHIB) has established itself as a major player in the memecoin space. With its cute canine mascot and strong community support, Shiba Inu (SHIB) has gained a significant following. The coin’s ecosystem continues to grow, with projects like ShibaSwap adding to its utility and appeal. Investors are optimistic about Shiba Inu’s future, expecting it to ride the wave of popularity that has kept it in the spotlight.

Ecosystem expansion

THE Shiba Inu (SHIB) The Shiba Inu (SHIB) ecosystem is constantly expanding, offering new features and utilities that enhance its value proposition. Projects like ShibaSwap provide users with opportunities to stake and earn rewards, making Shiba Inu (SHIB) more than just a meme currency. This expansion helps solidify its market position and attract a wider audience.

Balancing humor and professionalism

Mpeppe (MPEPE) offers a unique and light-hearted approach to the serious world of digital assets, balancing humor and professionalism. Inspired by internet memes and the dynamic energy of football fans, Mpeppe (MPEPE) is quickly gaining traction in the crypto community.

Mpeppe (MPEPE) offers an opportunity to reach a younger demographic and tap into the viral nature of internet culture. By balancing humor and professionalism, Mpeppe (MPEPE) appeals to a wide audience, from casual meme enthusiasts to serious investors. This strategy is similar to the one that made Shiba Inu (SHIB) so successful, but with a modern twist.

Expanding Reach and Adoption

Mpeppe’s (MPEPE) ability to leverage internet culture means it has the potential to rapidly expand its reach and adoption. The memecoin’s branding and community-driven approach make it accessible and appealing, much like Shiba Inu (SHIB) in its early days.

Why August is the month to invest

As the cryptocurrency market experiences a surge in interest, August presents a great opportunity to invest in promising assets like Shiba Inu (SHIB) and Mpeppe (MPEPE) Both coins are well positioned to capitalize on the growing interest in memecoins, driven by their unique appeal and active communities.

Conclusion: Don’t miss the benefits

Shiba Inu (SHIB) and Mpeppe (MPEPE) are poised for a profitable August, leveraging their viral potential and strong community support to attract a diverse audience. With the cryptocurrency market in full swing, now is the perfect time to consider investing in these promising memecoins. Just as Shiba Inu (SHIB) captivated the crypto world with its unique appeal, Mpeppe (MPEPE) is poised to make its mark. Don’t miss out on the potential gains these innovative digital assets have to offer.

For more information on the Mpeppe presale (MPEPE):

Visit Mpeppe (MPEPE)

Join us and become a member of the community:

https://t.me/mpeppecoin

https://x.com/mpeppecommunity?s=11&t=hQv3guBuxfglZI-0YOTGuQ

Fuente

Memecoins

Solana down 8% as its coins Dogwifhat, Billy and Neiro fall further

Published

2 months ago

1 August, 2024

TokenTalk Staff

Solana climbs 4% on the back of rising Meme Coins and Alts

Solana, the fifth-largest crypto asset by market cap, has fallen 8% in the past 24 hours, according to CoinGeckolike his Meme Coin Market Prices of some coins, which can be notoriously volatile, have fallen by as much as 43% in the past day.

As the cryptocurrency market bleeds with Bitcoin (Bitcoin) down 2.7% and Ethereum (ETH) 4.2%, Solana (GROUND) was the hardest hit among the top 10 cryptocurrencies, falling 8.2% to $168 on the day, according to data from CoinGecko. Along with this, meme coin Solana suffered huge losses.

The biggest loser in the last 24 hours is the bigger of the two Black (NEIRO) on Solana which fell nearly 44% to $0.01821. These tokens were launched after the owner of Kabosuthe Shiba Inu that inspired the Doge meme, announced that she had adopted a new dog named Neiro. Interestingly, her rival on the network launched an hour beforealso called Black (NEIRO), is up 75.2%. It appears that the Solana Neiro Civil War is far from being decided.

Other big losers include: Pump.fun’s Favorites Billy (BOWL), down 26.4%, and Michi (MICHI), which fell 24.5%. Over the past 24 hours, both tokens have flipped their market caps multiple times, but dog token Billy is currently in the lead with $94 million, about $3 million ahead of Michi.

Dog with hat (Wireless), the largest meme coin on Solana, was also hit, dropping 12.4%. Bonk (BONK), the second-largest Solana meme coin, fell 9.1%. In fact, among the top 50 Solana meme coins by market cap, only four tokens are in the green, with Zoomer (ZOOM IN) leading the pack with 41.1%.

Meme coins are notoriously high-risk assets and tend to post disproportionate losses when the broader market experiences a downturn.

Brain (BRAIN), Michi (MICHI), Mini (MINI), Shark cat (SC), and many others, for example, have suffered greater losses in the last 24 hours than any of the top 100 cryptocurrencies by market capitalization.

In the world of meme coins, when it rains, it rains.

Edited by Stacy Elliott.

Fuente

Memecoins

Trader Says Bitcoin’s Path to $100,000 Is ‘Currently Programmed’, Updates Outlook on Memecoin That’s Up Over 18,000% YTD

Published

2 months ago

1 August, 2024

TokenTalk Staff

Trader Says Bitcoin's Path to $100,000 Is 'Currently Programmed', Updates Outlook on Memecoin That's Up Over 18,000% YTD

A widely followed analyst and trader expresses bullish sentiment on Bitcoin (Bitcoin) while offering his take on the memecoin built on Solana (GROUND) blockchain ecosystem.

Starting with Bitcoin, the analyst known by the pseudonym Altcoin Sherpa tell His 219,000 followers on social media platform X say Bitcoin is on the verge of hitting a six-figure price.

“There will be bumps along the way, but Bitcoin’s path to $100,000 is on schedule. Don’t get rattled or lost along the way.”

Source: Altcoin Sherpa/X

At the time of writing, Bitcoin is trading at $66,236.

According to For the widely followed trader, Bitcoin enjoys strong support between $63,800 and $65,000, where the 25, 55, 89 and 200 exponential moving averages (EMAs) on the daily chart have clustered.

Source: Altcoin Sherpa/X

Next up is the Solana-based memecoin Popcat (POPCAT). The pseudonymous trader and analyst said that among the cat memecoin family, POPCAT is one of the “best” in the long run.

Altcoin Sherpa, however, says POPCAT looks bearish on the short-term four-hour time frame and needs to climb above a range low between $0.694 and $0.724 to avoid falling further.

Source: Altcoin Sherpa/X

POPCAT was trading at $0.00379 on January 5th and is now at $0.704, a gain of approximately 18,475%.

Altcoin Sherpa also offers his take on dogwifhat (Wireless), Solana-based Memecoin. According to For the pseudonymous analyst, WIF “still looks pretty good for now” on the four-hour chart with the “best” support area sitting around $2.10.

“The average would probably be $2.30 to $2.10 if I were you and I was swing trading this one.”

Source: Altcoin Sherpa/X

WIF is trading at $2.27 at the time of writing.

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