Meme coins are undoubtedly one of the hottest topics in the cryptocurrency market this year. $PEPE has repeatedly broken new highs in the past month, with a monthly increase of 133%, becoming the best-performing project among the top 100 cryptocurrencies; PAJAMAS , a cat meme currency launched by YouTube co-founder Chen Shijun, has also increased by as much as 42% in the past 14 days; After market maker DWF Labs reported yesterday that it officially purchased $5 million worth of coins from $LADYS, $LADYS has soared 31% in the past 24 hours and is now trading at $0.000000284.
Andrew Kang: It will be difficult for the SEC to ignore the growth of meme coins
In this context, Andrew Kang, co-founder of Mechanism Capital, a crypto venture capital institution, wrote that so far, the U.S. Securities and Exchange Commission (SEC) has adopted a very laissez-faire attitude towards meme coins. They believe $DOGE It's not worth pursuing in depth.
As the ancestor of meme coins, $DOGE currently has a market value of US$24.3 billion, ranking ninth in the global cryptocurrency market value. Recently, due to the death of its meme prototype Kabosu, $DOGE has become a hot topic in the community. With Musk's condolence tweet, its price once jumped 5%.
Kang further predicted that the SEC’s attitude of neglect may be about to change. He said:
With the rapid growth of meme coins, it is difficult for the SEC to continue to look away. For the SEC, getting tough might amount to political self-destruction, but under Gary Gensler, who has a reputation for tough enforcement, things remain unpredictable.
Kang added that meme coins are likely to become a major talking point on the national political stage, which would pave the way for a sharp rise in their prices. This means that he believes that once meme coins become the focus of politics and regulation, it will likely trigger great market interest and speculation in meme coins, thereby driving up their prices.
Although Kang believes that this is a positive for meme coins, based on past experience, Lai said that it cannot be ruled out that the meme coin development team will need to bear high legal fees or fines, or even be delisted, which may have an impact on the price of the currency. to cause significant damage. Investors please be careful of risks.
Andrew Kang: Altcoin will have significant returns, especially meme coins
In fact, this is not the first time that Kang has spoken optimistically about meme coins. At the beginning of last month, when mainstream currencies continued to fluctuate, he particularly emphasized the potential of meme coins:
I still expect significant returns from the “Altcoin market,” but mostly limited to meme coins, as the rate of new money entering the cryptocurrency market is slowing.
It is at this stage that I expect veteran crypto investors to increasingly flock to meme coins, as many will no longer be able to comfortably profit in a market where all assets are rising. For those not participating, the risk is that meme coins rise while other Altcoin fall.
Kang said nothing prompts people to embrace a new trend like an apparent liquidity depletion.
In addition, with the outbreak of Solana meme coin BOME in March, which started a craze for multiple meme projects to raise funds, Kang commented that people regard meme coins more as an investment than gambling. pointed out :
On a global average, less than 2% of personal wealth is invested in casinos, and few people invest all their assets in it. In contrast, investors' allocation ratios to meme coins are more diverse: cautious investors may allocate 1-5%, and "degens" who are more tolerant of risks may invest 10-50% , and those who invest according to the Kelly optimal strategy may even exceed 100%.
At the time, he predicted that the overall market value of meme coins would grow over the next ten years.
