With the rise of meme coins as the hottest topic in the cryptocurrency market, the regulatory attitude of the SEC may also soon adjust. Andrew Kang, co-founder of cryptocurrency venture capital firm Mechanism Capital, stated that the rapid development of meme coins will force the SEC to change its relatively lenient regulatory attitude so far. As meme coins gradually become an important topic on the US political stage, it is expected to further drive up their prices.
Meme coins are undoubtedly one of the hottest tracks in the cryptocurrency market this year. $PEPE has broken new highs repeatedly in the past month, with a monthly increase of up to 133%, making it the best-performing project among the top 100 cryptocurrencies. PAJAMAS, a cat-themed meme coin launched by co-founder of YouTube, Chen Shijun, has also seen a 42% increase in the past 14 days. DWF Labs, a market maker, recently announced its purchase of $LADYS coins worth $5 million from the official website, causing $LADYS to surge by 31% in the past 24 hours, now trading at $0.000000284.
Andrew Kang: SEC will have a hard time ignoring the growth of meme coins. Against this backdrop, Andrew Kang, co-founder of cryptocurrency venture capital firm Mechanism Capital, stated in a post that the US Securities and Exchange Commission (SEC) has taken a very lenient attitude towards meme coins so far, believing that $DOGE is not worth further investigation. $DOGE, as the progenitor of meme coins, currently has a market value of $24.3 billion, ranking ninth in the global cryptocurrency market. Recently, due to the passing of the meme’s prototype Kabosu, $DOGE has become a hot topic of discussion in the community, and with Musk’s mourning tweet, its price once soared by 5%.
Kang further predicts that the SEC’s neglectful attitude may soon change. He stated, “Meme coins are likely to become an important topic on the national political stage, which will pave the way for a sharp rise in their prices.” This means that once meme coins become the focus of politics and regulation, it may ignite a great interest and speculation in the market, thereby driving up their prices. Although Kang sees this as a positive factor for meme coins, based on past experiences, it cannot be ruled out that it may lead to significant damages to the meme coin development teams, such as having to bear high litigation fees or fines, or even being delisted. Investors should be cautious of the risks.
Andrew Kang: Altcoins will have significant returns, especially meme coins. In fact, Kang’s optimistic views on meme coins are not new. At the beginning of last month, while mainstream coins continued to fluctuate, he specifically emphasized the potential of meme coins. Kang stated that nothing prompts people to accept new trends more than obvious liquidity exhaustion. Additionally, when the Solana meme coin BOME exploded in March, triggering a frenzy of meme projects raising funds, Kang commented that compared to gambling, people see meme coins as an investment. He pointed out that within the next ten years, the overall market value of meme coins will experience growth.
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