Meme coin war escalates, SEC Chair's speech leads a new era of Compliance

This week, the cryptocurrency market showed an upward trend, with Bitcoin prices remaining above $104,000. However, market sentiment remains complex. A certain trading platform initially surged due to its inclusion in the S&P 500 index, but then fell by 7.2% due to regulatory investigations and user data leaks. FTX is about to start compensating, but a state investment committee has already sold its Bitcoin ETF holdings. Meanwhile, geopolitical tensions continue to escalate, leading to an overall cautious sentiment.

The competition in the meme coin market is heating up, with three major platforms engaging in fierce competition around token launches, liquidity, and community influence. Meanwhile, regulators have made important statements regarding asset tokenization, providing a clearer regulatory framework for the issuance, custody, and trading of crypto assets, signaling the arrival of a new era where compliance and mainstreaming go hand in hand.

1. The meme melee intensifies

With the addition of new platforms competing, the competition in the meme market has become increasingly fierce. The three major platforms have engaged in intense confrontation to vie for the issuance rights of a certain coin. The founders of two of the platforms even called each other out on social media, causing this meme craze to reach its peak.

1. The reason a certain platform has become the target of criticism.

• The platform has strong cash flow, no need to issue coins, and the regularly sold tokens suppress the price of the native coin.
• Dominating a certain ecosystem without competition is not conducive to the long-term development of the ecosystem.
• Accounted for 71% of daily token issuance in the ecosystem, further consolidating market share.
• Its dominance may suppress innovation, and the lack of competition may lead to ecological homogenization.

2. Innovative gameplay of the new platform

A new platform was founded by a young Australian entrepreneur who developed a game that garnered over 500,000 downloads at the age of 14. The platform issues tokens by attracting Web2 talent into the Web3 space, such as Harvard graduates and well-known application developers. This model may sustain in the short term and attract more Web2 teams to join.

3. Advantages of Third-Party Platforms

The third-party platform has received support from many senior figures in a certain ecosystem and has launched multiple successful projects. Participants can follow the social media updates of its founders and ecosystem supporters, who often publicly recommend new projects.

4. Robot Wars

A certain platform allows users to launch new tokens through simple social media operations, a mechanism that leads to a large number of bots monitoring new launches and quickly buying in. This makes it difficult for ordinary investors to participate in the early stages, and the market value may rise to the tens of millions level in a short period of time.

5. The competitive landscape of the meme market

Although a certain platform still dominates the meme market, its market share is being eroded by emerging platforms. The ultimate winner of this meme war is yet to be determined, but for ordinary investors, the competition among multiple platforms may bring more opportunities.

2. The Attitude of Regulatory Agencies Toward Asset Tokenization

1. Asset Issuance

• Current situation: Currently, only a few cryptocurrency issuers have completed issuance through legal means.
• Challenge: Existing regulatory requirements may not align with the actual situation of crypto assets.
• Objective: To establish clear and reasonable guidelines for crypto assets governed by securities or investment contracts.
• Attitude towards issued coin projects: As long as it can be corrected, registration exemption or safe harbor will still be provided.

2. Custody

• Relax the identity restrictions on custodians, which may be expanded to include brokerages, financial institutions, etc.
• Revoked the previous strict funding requirements for custodians.
• Plan to provide greater flexibility for registrants in choosing custody options.
• Consider allowing self-custody in certain circumstances

3. Transaction

• Support allowing registered platforms to trade a wider range of products, including securities and non-securities.
• Plan to modernize the trading system regulatory framework to better adapt to crypto assets
• Explore further guidance or rule-making to facilitate the listing and trading of crypto assets on national stock exchanges.

Conclusion

1. Strict regulation is expected to curb fraud and make the market more standardized.
2. The trend of asset tokenization is obvious, with a focus on both efficiency and Compliance.
3. Market liquidity is expected to significantly improve, and the scale will expand.