Once considered a community-driven digital asset, MemeCoins is increasingly being used to misuse retail investors, with the number of frauds increasing and celebrities-backed tokens sparking regulatory concerns.
The $4 billion Libra token, approved by Argentine President Javier Mairay, is the latest blow for the sector after eight insider wallets earned $107 million in liquidity, resulting in a 94% price drop from launch.
The rise of Memecoin-related fraud poses an important regulatory challenge, according to Anastasija Plotnikova, co-founder and CEO of blockchain regulatory firm Fideum.
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“Memokine evolved from a community-driven social experiment to a chaotic landscape dominated by value extraction from retail investors,” Plotnikova told Cointelegraph, adding:
“Insider Ring, Pump and Dump Scheme and Sniper Groups are replacing the organic, collectible nature of the original Memocoin, creating an unhealthy arena.”
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Investors should also distinguish between authentic “collectibles” such as Ragpur, “there is a case law in case law to assist in enforcement,” and memocoin, which can be considered “completely fraudulent activities.”
“In my view, these activities should fall firmly within law enforcement jurisdiction,” she added.
Milei-Andoresed Libra Token meltdown, in particular Libra, is the “open secret” of Memecoin Insider Circles, and it has emerged a more troublesome revelation that some members of the Jupiter Distributed Exchange knew they would be releasing the token two weeks ago.
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The Memecoin scandal is unlikely to affect us encryption laws
According to Dmitrij Radin, founder of Zekret and Chief Technology Officer of Fideum, Memecoin Meltdowns have been a negative hit for investors’ sentiment, but in the long run it may not affect emerging cryptocurrency regulations.
This is because I told Cointelegraph that not only has recent events, but because encryption methods are being built from a “long-term” perspective.
https://www.youtube.com/watch?v=cocyc2eqe4o
It is also important to understand and understand that the pull on Libra rugs is different compared to the release of the official Trump (Trump) and the official Melania Meme (Melania) token, according to Ladin.
“David Sacks of Crypto Czar in the US said Memecoins are more collectable, so they should not be regulated as security or anything like that.”
“That’s why I believe that Trump and Melania coins may be filmed differently from Libra,” he added.
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