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.