Memecoins have been a popular theme in crypto land in recent months. Think of Pepe Coin (PEPE) for example. The memecoin made a gigantic surge earlier this and was even in the top three crypto by trading volume at one point. Makers of such memecoins often respond to current developments in the crypto world and we are now seeing that happening again.
SEC meme coins
With the attack by the US Security and Exchange Commission (SEC), there are now a lot of ‘SEC memecoins’ in circulation. Tokens based on SEC Director Gary Gensler have also been popular since the SEC took Binance and Coinbase to court earlier this week.
One of these tokens is Good Gensler (GENSLR). The meme token rose more than 250 percent on Monday in the hours after the SEC announced it was suing Binance, but it’s not alone. There is also ‘Fuck Gary Gensler’ (FKGARY) or the SEC token, an abbreviation for ‘Stupid Egotistical Cocksuckers’. The two memecoins rose 530 and an absurd 15,000 percent respectively this week. However, the tokens are already falling sharply.
While memecoins do not have any intrinsic value, as the numbers prove, they are highly sought after. ‘High risks, high rewards’, as they say, but above all the risks are very high. Most investors in memecoins lose a lot of money.
This is how we saw the PEPE hype come to a painful end. PEPE has already fallen nearly 80 percent since peaking on May 5. Perhaps the price will recover at some point, but this is certainly no guarantee. For the time being, many PEPE investors are experiencing heavy losses.
Is there an advantage?
It is also interesting to note that the aforementioned memecoins about the SEC and Gary Gensler may be seen as a form of protest. It makes the sentiment towards the American financial watchdog from the crypto world very clear. In any case, it is an original way to demonstrate against opponents of the crypto sector.
That is perhaps the only bright spot to be seen when it comes to memecoins. As mentioned, these crypto assets are very risky. Always do proper research before deciding to invest in any asset.