:afire: Third Man :afire: on Nostr: >The president’s memecoin hit a peak of $72 on Jan. 19, then dipped to $44 on Jan. ...
>The president’s memecoin hit a peak of $72 on Jan. 19, then dipped to $44 on Jan. 20 when MELANIA launched. The coin briefly recovered while the president was sworn into office and has since hovered around the $40 mark. At the time of writing, the president’s memecoin is $37 — down 49% from its peak.
>If speculation is to be believed, more official memecoins by the Trump family are on the way. Though touted as “memecoins,” their significance is unprecedented.
>[...] Nearly 570,000 wallets have made a loss on TRUMP, compared to nearly 330,000 that made a profit. Source: 0xning
>Byrne believes these lost investments will inevitably lead to litigation. But what is the legal basis?
>“To my knowledge, no court in the United States has determined that memecoins are explicitly legal,” crypto lawyer Aaron Brogan told Cointelegraph.
>That said, they have historically been difficult to prosecute. Brogan explained that memecoins may not be classified as securities under the Howey test.
>“This is because they are basically inert. They don’t do anything and are not tied to any project with a goal of developing useful applications. They just sit onchain, and people buy them for the memes.”
>This is likely why the Securities and Exchange Commission largely avoided memecoins during its Gary Gensler era, instead opting for comparatively “easier” targets like XRP and SOL.
>“But regardless of why, launching a memecoin was less risky over the last four years than developing a bona fide project in cryptocurrency, which is probably the reason they have proliferated,” Brogan said.
>So, memecoins exist in a sort of litigation vacuum, making it the best way for the Trump family to launch a token when all eyes were firmly on them.
cointelegraph.com/news/trump-memecoins-lawsuits
>If speculation is to be believed, more official memecoins by the Trump family are on the way. Though touted as “memecoins,” their significance is unprecedented.
>[...] Nearly 570,000 wallets have made a loss on TRUMP, compared to nearly 330,000 that made a profit. Source: 0xning
>Byrne believes these lost investments will inevitably lead to litigation. But what is the legal basis?
>“To my knowledge, no court in the United States has determined that memecoins are explicitly legal,” crypto lawyer Aaron Brogan told Cointelegraph.
>That said, they have historically been difficult to prosecute. Brogan explained that memecoins may not be classified as securities under the Howey test.
>“This is because they are basically inert. They don’t do anything and are not tied to any project with a goal of developing useful applications. They just sit onchain, and people buy them for the memes.”
>This is likely why the Securities and Exchange Commission largely avoided memecoins during its Gary Gensler era, instead opting for comparatively “easier” targets like XRP and SOL.
>“But regardless of why, launching a memecoin was less risky over the last four years than developing a bona fide project in cryptocurrency, which is probably the reason they have proliferated,” Brogan said.
>So, memecoins exist in a sort of litigation vacuum, making it the best way for the Trump family to launch a token when all eyes were firmly on them.
cointelegraph.com/news/trump-memecoins-lawsuits