MemeCoins Take Center Stage As Crypto Giants Face Regulatory Turmoil

The post MemeCoins Take Center Stage As Crypto Giants Face Regulatory Turmoil appeared first on Coinpedia Fintech News

Cryptocurrency exchange Binance, a well-known player in the industry, is currently under investigation in the United States for a series of alleged illegal activities. This development, along with a lawsuit filed by the SEC against Coinbase and Binance’s CEO, Changpeng Zhao (CZ), has had a significant impact on the overall crypto market.

Memecoins See A Surge

Interestingly, amidst the market downturn, a different sector within the crypto industry is experiencing a surge. Memecoins, a type of cryptocurrency associated with internet memes, are gaining substantial attention. One of the hottest meme coins, Pepecoin, has witnessed a remarkable increase of over 14% in the past 24 hours.

Lawsuits Propel The Rise

After the lawsuits were filed against crypto exchanges, several meme-coins experienced a significant surge in their prices. Good Gensler (GENSLR), for instance, witnessed a remarkable rally of over 260% within hours of the regulatory complaint against crypto exchange Coinbase, which accused them of offering unregistered securities.

What really went down with Coinbase? Read here: SEC Files Charges Against Coinbase for Operating Unregistered Securities, Seeks Major Penalties

Pepecoin and Good Gensler

Currently, Pepecoin (PEPE) boasts a total market capitalization of $456 million, while Good Gensler’s market capitalization stands at around $3.2 million. Over the past 24 hours, Pepecoin has experienced a surge of over 15% in both its market cap and price, accompanied by a significant spike of more than 50% in trading volume. In contrast, Good Gensler has recorded a trading volume of just over $1.25 million based on the available data.

Risks of Memecoins

Pepecoin, being a meme-inspired cryptocurrency, carries higher risks compared to other crypto assets. Its value is heavily reliant on social media hype and internet cultural references, making it more volatile. Despite initially experiencing a steady price increase in late April and a significant surge on May 5 when it was listed on Binance, Pepecoin has since undergone a significant decline of over 60% from its peak, with 15% of this decline occurring in the past week alone.

Binance has certainly taken a hit. Read about it here: Jim Cramer Labels SEC Lawsuit a Major Setback for Binance – Coinpedia Fintech News

Fu*k Gary Gensler (FKGARY) Shows Momentum

Another meme-coin, Fu*k Gary Gensler (FKGARY), associated with Gensler, has also shown some upward momentum. It rallied by over 530% in the last 48 hours, as reported by decentralized exchange screener DEXTools.

Despite the rise in meme coins, it remains uncertain whether the SEC’s crackdown on crypto exchanges will lead to a meme coin craze. The future impact is difficult to predict at this point.