Well now, gather ’round, folks! It seems that the memecoins, those whimsical little tokens like the Official Trump (TRUMP) token, are prancing about without a care in the world, free from the watchful eye of the Securities and Exchange Commission, as Commissioner Hester Peirce has so kindly informed us. 🎩
In a twist that would make even the most seasoned gambler raise an eyebrow, it appears that investors have collectively lost a staggering $2 billion on this memecoin in a mere blink of an eye. Peirce, in her infinite wisdom, declared that most of these memecoins are as unregulated as a cat in a room full of rocking chairs. 🐱
During a delightful chat with Bloomberg on February 11, Peirce was asked whether these memecoins, including the illustrious TRUMP and the equally charming Melania Meme (MELANIA), have been giving the SEC a run for its money. She replied, “Many of the memecoins that are out there probably do not have a home in the SEC under our current set of regulations.” Well, bless her heart! It seems Congress might need to roll up their sleeves and take a gander at this mess. 🏛️
TRUMP memecoin investors lose $2 billion
Peirce’s musings on memecoins came on the same day that The New York Times reported on the unfortunate plight of TRUMP memecoin investors. It’s a tale as old as time, folks—813,000 crypto wallets, each one a sadder story than the last, lost a whopping $2 billion after diving headfirst into the TRUMP pool. 💸
Launched on January 17, this memecoin has taken a nosedive of about 80% since its high-flying days at $72.60 on January 19, with its market cap shrinking faster than a balloon at a porcupine convention—from $14.5 billion to a mere $3 billion, according to CoinGecko. Talk about a rollercoaster ride! 🎢
While the TRUMP investors are left counting their losses, the Trump Organization and its merry band of partners have reportedly raked in a cool $100 million in trading fees. Now that’s what I call a win-win! Or is it a win-lose? 🤔
Memecoins are “more akin to collectibles,” says industry analyst
Now, memecoins, dear readers, are a curious breed of cryptocurrency that sprout from the fertile ground of internet memes, jokes, and cultural references. Unlike their more serious cousins like Bitcoin (BTC) or Ether (ETH), these little jokers are not tied to any technological marvels but rather thrive on community support and celebrity endorsements. It’s like a popularity contest, but with money! 🏆
Peirce, who also heads the SEC’s newly minted crypto task force, pointed out that if Congress wants to tackle this memecoin conundrum, they’re welcome to do so. “Maybe that’s something the CFTC [Commodity Futures Trading Commission] wants to address,” she mused. Sounds like a game of hot potato to me! 🥔
Some industry folks, like ETF Store president Nate Geraci, are nodding along with Peirce, saying, “Makes sense to me. Memecoins are more akin to collectibles, in my opinion.” Well, if that’s not a ringing endorsement, I don’t know what is! 📜
Meanwhile, macroeconomist Lyn Alden has drawn comparisons between memecoins and other fleeting trends like initial coin offerings (ICO) and non-fungible tokens (NFT). “Having watched this space since 2017, I see a lot of the same patterns,” Alden remarked on X. It’s like déjà vu, but with more zeros! 🔄
“The same bearish TradFi [traditional finance] accounts that dismissed Bitcoin due to mostly unrelated ICOs, DeFi [decentralized finance], and NFTs will now dismiss it due to memecoins. When they could just buy it and beat their own portfolios,” Alden quipped. Oh, the irony
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2025-02-12 16:59