CryptoCurrency
Meme Coin Momentum Fades After Trump Inauguration but Wall Street Pepe ICO Continues to Pump
The meme coin hype is cooling after Donald Trump’s inauguration celebrations.
Over the past 24 hours, big names like DOGE, PEPE, and SHIB have taken a nosedive.
But while most meme coins are selling off, one project continues to impress – Wall Street Pepe (WEPE).
Its ICO has passed $57 million in early contributions, setting the stage for a highly-anticipated exchange debut in just over three weeks.
Meme Coin Market Sees Major Correction as Trading Volumes Plummet
Nearly every major meme coin is in the red right now.
What started as minor profit-taking has snowballed into a broader sell-off, dragging the meme coin sector’s market cap back to $102 billion.
Meanwhile, trading volumes have dropped by more than 50% since yesterday.
Tokens that were rallying earlier in the week are now feeling the heat.
SHIB is down 2%, DOGE has dropped 4%, and TRUMP coin – last weekend’s breakout star – has plunged 14%.
But the biggest loser is AI16Z, down 25% in the past 24 hours.
The only real standout was PENGU – managing to post a small gain.
This kind of pattern is nothing new in the meme coin space, where sharp corrections often follow massive rallies.
Still, not everyone is spooked by the price action.
Well-known meme coin trader Murad called the sell-off an “opportunity of a lifetime” for those willing to stomach the volatility.
Crypto Market Sells Off While Bitcoin ETF Inflows Drop
The broader crypto market is also showing some cracks.
Bitcoin has slipped to $101,800, Ethereum is down to $3,200, and XRP has dropped to $3.
LINK took the biggest hit among the top altcoins, falling 6% since yesterday.
Things are clearly cooling off – and total spot trading volumes have slumped 16%, with open interest also dropping.
At the same time, demand for the spot Bitcoin ETFs is fading slightly.
Total inflows dropped 69% yesterday to $248 million, and BlackRock’s IBIT fund was the only one to see meaningful gains.
GBTC led the way in terms of outflows with $47 million.
Some analysts believe this is a “sell the news” moment, claiming Trump’s inauguration buzz was already priced into the market.
The optimism around this colossal event may have already run its course.
However, things change fast in crypto – so even though the market is red today, it could quickly flip green tomorrow.
Wall Street Pepe ICO Passes $57M Despite Market Downturn – Next Big Meme Coin Opportunity?
Wall Street Pepe’s ICO is defying all this bearishness.
The project has now raised over $57 million, and more than $1 million is coming in daily – even as the broader market sells off.
With the ICO running until February 16, Wall Street Pepe’s momentum does not show signs of stopping.
So, why all the hype?
For starters, the project has positioned itself as an aid for retail traders, targeting the dominance of crypto whales in the meme coin space.
That approach is hitting home, as evidenced by Wall Street Pepe’s Telegram channel reaching 17,300 subscribers.
The project’s Twitter following has also exploded recently.
Wall Street Pepe’s team will give WEPE holders access to market insights, trading tools, and real-time signals.
They’ll also host trading competitions where the winners receive WEPE prizes.
And if that wasn’t enough, there’s even a built-in staking app for WEPE, offering higher yields than most crypto staking coins.
Big-name YouTubers have praised the project’s setup.
For example, NASS CRYPTO released a video about Wall Street Pepe last month, which has been viewed over 86,000 times.
Given that he has more than one million YouTube subscribers, his endorsement has given the project a massive boost.
So, with 24 days left in its ICO, things are looking positive for Wall Street Pepe.
Despite the ongoing meme coin sell-off, WEPE seems to be holding up quite well.
Disclaimer: The above article is sponsored content; it’s written by a third party. CryptoPotato doesn’t endorse or assume responsibility for the content, advertising, products, quality, accuracy, or other materials on this page. Nothing in it should be construed as financial advice. Readers are strongly advised to verify the information independently and carefully before engaging with any company or project mentioned and do their own research. Investing in cryptocurrencies carries a risk of capital loss, and readers are also advised to consult a professional before making any decisions that may or may not be based on the above-sponsored content.
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Ranger Labs Raises $1.9M, Eyes AI-Powered Crypto Trading Products
The builders of Solana-based crypto derivatives exchange Ranger Protocol are jumping on the AI train, too, after raising $1.9 million from venture investors.
Ranger’s eponymous trading venue pools crypto perps (the most popular investment contract in DeFi for trading tokens like SOL) from multiple protocols to secure good deals for traders. Since launching in late December, it has facilitated $25 million in trades, a drop in the bucket of Solana’s total perps landscape.
The protocol is now planning to add new product lines that give customers access to AI-assisted trading strategies, co-founder Coby Lim told CoinDesk. A press release described vaults managed by AI agents who mix programmatic trading strategies with social media and data insights.
DeFAI (a portmanteau of DeFi and AI) has been taking off for months as enthusiasts of both buzzy tech fields experiment with mixing the two. AI agents can be set up to control their own crypto wallets, opening limitless possibilities.
“AI and DeFi are on a collision course,” co-founder Fathur Rahman (known commonly as Fa2) said. “Automation, predictive modeling, and intelligent execution will redefine trading. AI optimizes strategy, DeFi provides transparency, and together they unlock a new frontier of efficiency.”
Rahman said AI rollouts are expected in “the coming quarters.”
In the interim, Ranger’s rangers are working on pulling crypto perps from two more protocols, Adrena and Drift, to add to their current base of contracts from Jupiter and Flash. Their bet is Ranger’s aggregation strategies source deeper liquidity for institutional perps traders than any one exchange ever could.
That’s also what Ranger’s venture backers are counting on. Viktor Fischer of lead investor RockawayX called Ranger’s “smart order routing” a “critical step towards a vibrant Solana perpetuals market.”
Asymmetric, Big Brain Holdings, RISE Capital and Anagram joined RockawayX in the $1.9 million funding round, which closed in December at a $30 million valuation.
CryptoCurrency
Worldcoin Price Prediction As Trump Launches Stargate – Best Crypto To Buy Now?
Donald Trump launched The Stargate Project on Tuesday, a $500 billion initiative aimed at developing AI infrastructure in the United States.
The announcement resulted in a strong surge in stock prices of major players involved in the project, with Oracle (ORCL) and Softbank (SFTBY) up by nearly 13% and 16%, respectively.
While OpenAI, a lead partner which has operational responsibility for the project, isn’t a publicly traded company, the Worldcoin (WLD) crypto asset saw a significant uptick. For the uninitiated, Worldcoin was also founded by OpenAI founder Sam Altman.
However, Worldcoin price predictions from experts suggest WLD remains a tricky investment, despite the high upside potential.
Several smart money investors are instead pivoting to AI agent coins like AIXBT, AI16Z and Mind of Pepe.
Worldcoin Price Prediction — Is It Still An Attractive Investment?
Worldcoin being the brainchild of OpenAI founder Sam Altman makes it a crypto asset with strong fundamentals.
As such, its network of humans, featuring the World ID, World Chain and World App is one of the more unique projects in the Web3 ecosystem. By January 10th this year, 10 million users have verified themselves on the World Network, using its cutting-edge iris scanner orbs.
10 million verified humans on World Network. Thank you 🫶 pic.twitter.com/wQPWxsnERm
— World (@worldcoin) January 10, 2025
With OpenAI being a lead partner of Donald Trump-led, $500 billion AI-infrastructure project, it is no surprise that the Worldcoin price saw a 33% surge on January 21st.
However, $WLD quickly formed a double-top structure at $2.41, resulting in a correction to $2.16.
The quick pullback doesn’t showcase enormous strength, neither does the 21% decline in its trading volume.
For instance, the $WLD price is currently underperforming most key moving average indicators in the daily and weekly timeframes, data from TradingView reveals.
However, Worldcoin price predictions from experts reveal the AI coin isn’t altogether a bad investment. For instance, Crypto Doc highlights WLD continues to hold above the $1.60 – $2.10 support zone. He expects the token to hit a new all-time high and potentially reach as high as $15 in the upcoming “altseason”.
Prominent analyst Ali Martinez also highlights how Worldcoin’s macro price chart resembles the market cycle chart and appears poised for a parabolic rally.
#Worldcoin $WLD still seems to be in the early stages of the market cycle! pic.twitter.com/VBZt1m0Z9u
— Ali (@ali_charts) January 22, 2025
However, WLD will need to flip the $2.40 – $2.50 resistance zone, which is a confluence of several key moving average indicators including 30-week EMA, 100-day SMA and 200-day EMA.
Moreover, it would need to flip its macro descending trendline for the bulls to steer control and push for new all-time highs. Sidelined investors can wait for this breach before including Worldcoin in their portfolios or opening long positions.
Why AI Agent Coins Are The Best Crypto To Buy Now?
Unlike Worldcoin, AI agent coins have high latent demand which is visible during every relief rally.
Despite the broader market uncertainty, AI16Z is up by nearly 30% over the past month while AIXBT is up a staggering 120%, both faring much better than WLD which is down by 9% in the same period.
With artificial intelligence technology expected to take centre stage in the Trump administration, these two are among the best cryptos to buy now.
There is also a significant demand for low-cap AI agent coins like Mind of Pepe (MIND). It is not without any reason the MIND presale has raised over $3 million in a few short weeks.
Three Million. $MIND pic.twitter.com/Z8JQGi50gq
— MIND of Pepe (@MINDofPepe) January 22, 2025
Mind of Pepe is building a self-sovereign, self-evolving AI agent with its own crypto wallet and self-managed X and Telegram accounts. Only MIND holders will exclusively receive the benefits, which include hive-mind analysis, real-time community intelligence, discounted access to AI-powered meme coins, etc.
Moreover, MIND’s presale staking platform has also impressed retail investors with its over 600% yield percentage.
Unsurprisingly, experts are bullish on Mind of Pepe’s high upside potentially, with many including it in their lists of best crypto to buy now.
Disclaimer: This is a sponsored article and is for informational purposes only. It does not reflect the views of Crypto Daily, nor is it intended to be used as legal, tax, investment, or financial advice.
CryptoCurrency
Bitcoiners ‘struggling’ with Trump’s vague ‘digital asset stockpile’ order
“Bitcoin” wasn’t mentioned once in Trump’s executive order to study a crypto stockpile, so some maximalists fear it could include other cryptocurrencies.
CryptoCurrency
SHIB & PEPE could storm ahead of DOGE: 1Fuel pre-release turns heads
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
1Fuel’s pre-release is turning heads as Shiba Inu and Pepe look to storm ahead of Dogecoin.
It’s the aftermath of Trump’s presidential inauguration and meme coins are again in the spotlight, but not quite in the way many would expect. Market analysts foresee bullish runs for both Shiba Inu (SHIB) and Pepe (PEPE) amidst recent downturns. Meanwhile, Dogecoin (DOGE) is facing intense rivalry as it grapples with maintaining control.
Away from this dynamic, 1Fuel (OFT), a new token, is forging a niche for itself. 1Fuel’s presale is gaining attention, with tokens selling for $0.017 and analysts predicting a 100x run.
SHIB and PEPE
SHIB saw a steady price rise between August and December 2024. However, since the start of 2025, the token has not been at the top of its game. In the last 14 days, SHIB has declined by 13.0%.
Similarly, PEPE’s current market valuation could be better. The token currently trades at $0.000015, with weak momentum. However, in light of analysts’ forecast for a bullish swing, there is cause to believe that PEPE could perform well in the coming days.
Regardless of their recent market downturns, SHIB and PEPE are eyeing opportunities to overshadow DOGE. 2025 has been a year of price fluctuation for Dogecoin as it staggers between $0.31 and $0.43. DOGE has suffered a near 10% decline in the past week. This development gives its holders something to think about, especially with new cryptocurrency options like 1Fuel offering unique opportunities.
1Fuel: An upcoming cryptocurrency exchange
Unlike meme coins, 1Fuel is seeking to establish a solution that the entire blockchain can benefit from. Constructed with ease of use and accessibility at its core, 1Fuel seeks to simplify cross-network trades. Challenges with multiple wallets and high transaction fees will become a thing of the past with 1Fuel.
The token’s capacity to synchronize effectively with decentralized systems using advanced infrastructure also gives it a unique edge. This could position it as a top cryptocurrency exchange contender for investors on the lookout for a balance of innovation and usability.
Additionally, 1Fuel’s pre-release continues to gather traction. Investors have been purchasing the 1Fuel tokens, selling now for $0.017, accumulating approximately $1.4 million with over 147,000,000 coins sold.
It may not be long before 1Fuel propels itself from an underdog to a major player given its emphasis on flexible cryptocurrency operations and returns.
Conclusion
The strive for dominance among meme coins intensifies: Dogecoin grapples with current downturns as Shiba Inu and Pepe strive to capitalize on this. Holders of these tokens may shift their gaze to 1Fuel as a promising alternative for their portfolios.
For more on 1Fuel, visit their website, Telegram, or X.
Disclosure: This content is provided by a third party. crypto.news does not endorse any product mentioned on this page. Users must do their own research before taking any actions related to the company.
CryptoCurrency
Bitcoin Trade Volume Wednesday Was One of the Largest Ever
Bitcoin continues to trade at record levels.
According to checkonchain data, Wednesday’s $130 billion bitcoin (BTC) volume was one of the highest in its history. Trade volume has soared since President Trump won the U.S. election at the start of November, doubling from a daily average of $65 billion.
The futures market (the total traded in futures contracts) yesterday saw $110 billion worth of volume. This was the fifth-highest futures trade volume recorded, only bettered on a handful of days in November and December last year.
The spot market saw roughly $15 billion of traded volume, which is approaching an all-time high. Meanwhile, bitcoin ETFs saw around $5 billion worth of trade volume, which is around half the all-time high seen in March 2024.
It is worth noting that options volume has not been included in the $130 billion daily volume figure, but it too is growing rapidly. According to Glassnode data, the total amount of options contracts traded in the last 24 hours is more than $3 billion.
With bitcoin is vying to be a global settlement layer, the more volume and liquidity that can be generated, the greater the asset’s chance of onboarding institutions that want to settle in billions of dollars at a moment’s notice.
CryptoCurrency
Ethereum And Cardano Drowned By Remittix's Success As Early Investors Bag 50% Returns In Just Three Weeks
A new cryptocurrency called Remittix has become a market favorite instead of Ethereum (ETH) and Cardano (ADA). The PayFi project attracts global investors with its innovative approach. The three-week presale of Remittix has delivered a 50% return to investors who joined early.
This remarkable growth has not only turned heads but also raised the question: is Remittix the next big thing in crypto? The DeFi project solves market problems by providing simple crypto-to-fiat payment solutions and easy cross-border transactions. It stands as a movement that could transform how people use cryptocurrencies.
Trump Goes On Ethereum (ETH) Buying Spree
The Ethereum coin is among the most sluggish in the market right now. Its value has been consolidating within a narrow range with some analysts calling it a sleeping giant. CoinMarketCap data shows the value of Ethereum (ETH) has dropped by 8.9% in the last two weeks.
Fortunately, the poor price movement has not swayed investors. Ash Crypto reveals that Trump’s World Liberty Finance has bought over $58 million ETH in the past few weeks. This increased accumulation could mean a price surge is on the way.
The analyst told his followers that something big is cooking. Besides, a crypto expert called MisterrCrypto notes that the Ethereum crypto has hit rock bottom.
They said Trump’s ETH accumulation could spark a rally soon. So, Misterrcrypto advised investors to remain patient. The analyst accompanying their post shows the ETH/BTC pair soaring to $0.11. Poseidon says the Ethereum price might hit $5k before February.
Cardano (ADA) Key Support Level To Watch
In a recent post on X, a top analyst called InvestingHaven told his followers the value of the Cardano coin could skyrocket in the coming weeks. However, the expert told them to watch out for a key support level at $0.824. InvestingHaven says holding this level could push the Cardano price to a new level. He posted a target of $1.9-$2.5 if this level holds.
Meanwhile, another analyst called FLASH posted a similar Cardano price prediction. They say the value of the altcoin could pump to $2 next. Technical indicators like the relative strength index support this potential uptrend. The indicator is above the 50 mark which means that bulls are in control.
In the meantime, CoinMarketCap data reveals Cardano (ADA) is showing upward movement on the daily chart. The cryptocurrency is currently consolidating close to the $1 mark and is among the top altcoins that could surge higher in the coming weeks.
Investors Jump Into Remittix (RTX) As Price Pumps To New High
Remittix (RTX) is a top crypto ICO that has shaken the market in the past few weeks. The project has sold over 270 million RTX coins which shows huge interest from investors. Currently priced at $0.0282, Remittix is the best DeFi cryptocurrency to buy. Its value could increase by 20x in 2025.
At its core, Remittix brings cryptocurrency into the mainstream financial world through its innovative cross-border payment solution. This advanced solution helps users and businesses move funds across borders quickly while maintaining low fees and easy transfer methods.
The basic design and practical features of Remittix drive its success. Through Remittix Pay API businesses can add cryptocurrency payment options to their business operations regardless of size or location. The business can expand its customer base worldwide while gaining market share and standing out against competitors. Remittix enables companies to create merchant accounts for handling transactions.
Through Remittix businesses gain complete control over crypto operations and profit withdrawal while benefiting from multiple currency choices and trading pair access. Remittix combines crypto speed and convenience with traditional banking features to help everyone access global finance and build the future of international money transfers.
Investors Rush To This Altcoin For More Profits
Remittix has emerged as the best crypto to buy right now. Not only has the RTX coin given investors more than 50% gains, but it can also soar another 20x before the end of the quarter. Therefore, investors interested in purchasing a good cryptocurrency in January 2025 can join the presale before it’s too late.
Join the Remittix (RTX) presale and community:
Join the Remittix (RTX) Community
Disclaimer: This is a sponsored press release and is for informational purposes only. It does not reflect the views of Crypto Daily, nor is it intended to be used as legal, tax, investment, or financial advice.
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Vitalik Buterin takes aim at ‘unlimited political bribery’ using tokens
The Ethereum co-founder warned against crypto projects offering “sugar-high short-term fun” rather than those used to build wealth.
CryptoCurrency
Low-cap meme coin to challenge ETH and SOL
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
BeerBear, a new low-cap meme coin, is looking to challenge Ethereum and Solana.
The crypto world is buzzing with talk of a low-cap meme coin that’s set to challenge giants like Ethereum (ETH) and Solana (SOL). With predictions of massive returns, speculators are flocking to this hidden gem in search of massive profits. The name making waves? BeerBear.
BeerBear: A unique crypto opportunity
Time is ticking, and the crypto world is buzzing about BeerBear, the token that looks to rewrite the rules of profit. With early presale discounts and high growth potential, BeerBear could be a chance to secure fast, substantial gains before the bull run hits full speed.
BeerBear’s presale started at $0.0001 per token and will ramp up to $0.0020 by the 20th stage. The math doesn’t lie – early adopters stand to rake in up to 1,900% returns in record time.
BeerBear isn’t just another token – it’s an adrenaline-packed ecosystem designed to grow fast and reward its investors quickly:
- Presale growth: Opportunity to get in from the start and watch investments multiply with each stage.
- Gamified ecosystem: Prepare for BeerBear’s Bar Brawl Beat ‘Em Up Game, where rare items and rewards can be unlocked. Think Streets of Rage meets crypto dominance – play, earn, and collect exclusive perks.
- Massive rewards with Beer points: Every token purchase earns Beer points, unlocking additional bonuses like NFTs, airdrops, and premium game access. The bigger the purchase, the bigger the rewards.
Beer points reward system
Earn 6%-12% Beer points based on the size of token purchase:
- Small contributions ($10-$250) earn 6% in Beer points.
- Medium contributions ($1,000-$2,500) earn 9% in Beer points.
- Large contributions ($10,000+) unlock the maximum reward of 12% in Beer points.
Example: A $700 purchase earns 5,600 Beer points, boosting potential bonuses and rewards.
USDT-BSC multi-level referral program
- Earn up to 9% for direct referrals, with additional bonuses for referrals made by referees.
- Share the referral link and turn every connection into passive USDT income.
- Weekly payouts ensure rewards arrive fast — no waiting around.
- Start small or go big and watch referrals generate consistent profits.
Interested investors can join the BEAR presale.
Ethereum: King of smart contracts
Ethereum has dominated the blockchain space with its smart contract functionality and a massive developer ecosystem. Its role as the backbone of decentralized applications (dApps) and DeFi has cemented its place at the top of the crypto hierarchy.
Despite its success, Ethereum’s scalability issues and high transaction fees have caused many traders to explore alternative investments for higher returns.
Solana: The high-speed contender
Solana has emerged as a top competitor to Ethereum, boasting lightning-fast transaction speeds and low fees. Its ability to handle thousands of transactions per second has made it a favorite for developers and traders alike.
With a growing ecosystem and strong backing, SOL has become a go-to choice for those seeking a high-performing blockchain. However, as Solana gains traction, speculators are turning their attention to the next big opportunity.
The meme coin set for massive gains
BeerBear is offering a fresh opportunity for traders chasing massive returns. Priced at $0.0002 during its presale, BeerBear provides a low entry point for those ready to ride the wave. With a multi-stage presale model that rewards early adopters, BeerBear is capturing the attention of whales and retail investors alike.
What sets BeerBear apart is its ability to generate hype and foster a community of degens who thrive on high-risk, high-reward plays. The buzz surrounding BeerBear is growing by the day.
Conclusion
Ethereum and Solana are proven leaders in the crypto space but BeerBear’s potential and low presale price make it a unique opportunity for speculators. With predictions of massive returns, BeerBear is a meme coin that could redefine portfolios in 2025.
For more information on BeerBear, visit their website, X, or Telegram.
Disclosure: This content is provided by a third party. crypto.news does not endorse any product mentioned on this page. Users must do their own research before taking any actions related to the company.
CryptoCurrency
Could This be the Future of Crypto Wallets? $BEST Token Presale Nears $8M Milestone
Tired of juggling multiple different platforms to manage your crypto?
Best Wallet (BEST) has created an all-in-one solution – and its BEST token presale is going from strength to strength.
With nearly $8 million raised, could BEST live up to all the early hype?
Best Wallet – The New Wallet Aiming to Transform Crypto Management
Best Wallet is aiming to be the complete crypto hub, offering a wide range of features for both new and experienced traders.
Users can store assets, swap tokens, and even access exclusive presale projects in one easy-to-use platform.
One of Best Wallet’s standout features is its built-in DEX.
This DEX lets users buy, sell, and swap their favorite tokens without leaving the Best Wallet app.
Plus, the app’s staking protocol lets them stake BEST to earn APYs of 228%, which is far higher than the industry average.
If that wasn’t enough, Best Wallet’s team plans to launch “Best Card” – a debit card that lets investors spend their crypto as if it were cash.
But it’s not just about convenience since Best Wallet is designed with security in mind.
Best Wallet protects users’ assets with two-factor authentication and insurance through Fireblocks.
And let’s not forget about the BEST token itself.
Holding BEST unlocks several perks, including reduced trading fees, higher staking rewards, and a say in the platform’s future.
BEST Token Presale Nears $8M as Investor Demand Ramps Up
The BEST token presale is generating serious buzz right now.
With nearly $8 million raised and a daily funding rate exceeding $200,000, investors are clearly excited about Best Wallet’s potential.
That’s unsurprising, given that the wallet offers new features, a user-friendly app, and a strong development team.
The BEST token presale, which kicked off in mid-November, has seen steady demand.
This shows it’s not just a temporary fad – there’s real momentum behind it.
Early investors can now grab BEST tokens for $0.0237 each, but that price will increase as the presale progresses.
That means those who get in the earliest will receive a lower entry point.
Adding to the hype, Best Wallet has been audited by Coinsult, a well-known security firm, who found no issues.
The Best Wallet community is also growing fast, with Twitter and Telegram channels seeing an influx of members.
And to top it off, the project has even received shout-outs from some big names in the crypto world, like Austin Hilton and Borch Crypto.
Upcoming Tokens Feature Provides Early Access to the Next Crypto Gems
One of the big drivers behind Best Wallet’s presale success is the “Upcoming Tokens” feature.
This is where users can discover and invest in promising new projects before they hit exchanges.
Imagine getting in on the next Dogecoin early.
That’s the kind of opportunity that the Upcoming Tokens feature offers.
It’s simple to use: Users can browse ongoing presales, learn about the project’s details, and invest directly through the Best Wallet app.
They can even track their token balance and be notified about important events, such as when to claim their tokens.
Best Wallet users have already seen some incredible returns from this feature.
Pepe Unchained, for example, saw nearly 700% upside from its presale price to its post-launch high.
Catslap soared over 2,500% from its initial launch price.
And with Upcoming Tokens now featuring the Meme Index project, this might be the next big thing.
So, if you’re looking for a crypto wallet with a twist, Best Wallet is worth checking out.
It very well could be the future of digital asset management.
Visit Best Wallet Token Presale
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A New (Digital) Age at the SEC
As technology evolves, the U.S. Securities and Exchange Commission (SEC) must evolve with it. Nowhere is this truer than in crypto, and now: The market for crypto assets has grown in size and sophistication such that the SEC’s recent harmful approach of enforcement and abdication of regulation needs urgent updating.
While the long-term future of the crypto industry in the U.S. will likely require Congress to sign a comprehensive regulatory framework into law, here are six steps the SEC could immediately take to create “fit-for-purpose” regulations – without sacrificing innovation or critical investor protections.
#1 Provide guidance on ‘airdrops’
The SEC should provide interpretive guidance for how blockchain projects can distribute incentive-based crypto rewards to participants — without those being characterized as securities offerings.
Blockchain projects typically offer such rewards — often called “airdrops” — to incentivize usage of a particular network. These distributions are a critical tool for enabling blockchain projects to progressively decentralize, as they disseminate ownership and control of a project to its users.
If the SEC were to provide guidance on distributions, it would stem the tide of these rewards only being issued to non-U.S. persons — a trend that is effectively offshoring ownership of blockchain technologies developed in the U.S., yet at the expense of U.S. investors and developers.
What to do:
Establish eligibility criteria for crypto assets that can be excluded from being treated as investment contracts under securities laws when distributed as airdrops or incentive-based rewards. (For example, crypto assets that are not otherwise securities and whose market value is, or is expected to be, substantially derived from the programmatic functioning of any distributed ledger or onchain executable software.)
#2 Modify crowdfunding rules
The SEC should revise Regulation Crowdfunding rules so they are suitable for crypto startups. These startups often need a broader distribution of crypto assets to develop critical mass and network effects for their platforms, applications, or protocols.
What to do:
Expand offering limits so the maximum amount that can be raised is on par with crypto ventures’ needs (e.g., up to $75 million or a percentage of the overall network, depending on the depth of disclosures).
Exempt crypto offerings in a manner similar to Regulation D, allowing access to crowdfunding platforms beyond accredited investors.
Protect investors through caps on the amounts any one individual may invest (as Reg A+ currently does); robust disclosure requirements that encompass the material information relevant to the crypto venture (e.g. relating to the underlying blockchain, its governance, and consensus mechanisms); and other safeguards.
These changes would empower early-stage crypto projects to access a wide pool of investors, democratizing access to opportunities while preserving transparency.
#3 Enable broker-dealers to operate in crypto
The current regulatory environment restricts traditional broker-dealers from engaging meaningfully in the crypto industry — primarily because it requires brokers to obtain separate approvals to transact in crypto assets, and imposes even more onerous regulations around broker-dealers who wish to custody crypto assets.
These restrictions create unnecessary barriers to market participation and liquidity. Removing them would enhance market functionality, investor access, and investor protection.
What to do:
Enable registration so broker-dealers can deal in – and custody – crypto assets, both securities and nonsecurities.
Establish oversight mechanisms to ensure compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations.
Collaborate with industry authorities like FINRA to issue joint guidance that addresses operational risks tailored to crypto assets.
This approach would promote a safer and more efficient marketplace, enabling broker-dealers to bring their expertise in best execution, compliance, and custody to the broader crypto market.
#4 Provide guidance on custody and settlement
Ambiguity over regulatory treatment and accounting rules has deterred traditional financial institutions from entering the crypto custody market. This means that many investors are not getting the benefit of fiduciary asset management for their investments, and instead are left investing on their own and arranging their own custody alternatives.
What to do:
Clarify guidance on how investment advisers can custody crypto assets under the Investment Advisers Act, ensuring adequate safeguards such as multi-signature wallets and secure offchain storage. Also provide guidance on staking and voting on governance decisions for crypto assets in the custody of investment advisers.
Develop specific guidance on settlement for crypto transactions – including timelines, validation processes, and error resolution mechanisms.
Establish a flexible, technology-neutral framework that can adapt to custody solution innovations, meeting regulatory standards without imposing prescriptive technological mandates.
Rectify accounting treatment by repealing SEC Staff Accounting Bulletin 121 and its handling of balance sheet liabilities for custodied crypto assets. (SAB 121 moves custodied crypto assets onto the custodian’s balance sheet — a practice that is at odds with the traditional accounting treatment of custodied assets.)
This clarity would provide greater institutional confidence, increasing market stability and competition among service providers while improving protections for both retail and institutional crypto investors.
#5 Reform ETP standards
The SEC should adopt reform measures for exchange-traded products (ETPs) that can foster financial innovation. The proposals promote broader market access to investors and fiduciaries used to managing portfolios of ETPs.
What to do:
Revert to the historical market-size test, requiring only that sufficient liquidity and price integrity for the regulated commodity futures market exists to support a spot ETP product. Currently, the SEC’s reliance on the “Winklevoss Test” for surveillance agreements with regulated markets that satisfy arbitrary predictive price discovery has delayed approval of bitcoin and other crypto-based ETPs. This approach overlooks the significant size and transparency of current crypto markets, their regulated futures markets, and creates an arbitrary distinction in the standards applicable to crypto-based ETP listing applications and all other commodity-based listing applications.
Permit crypto ETPs to settle directly in the underlying asset. This will result in better fund tracking, reduce costs, provide greater price transparency, and reduce reliance on riskier derivatives.
Mandate robust custody standards for physically settled transactions to mitigate risks of theft or loss. Additionally, provide for the option of staking idle underlying assets of the ETP.
#6 Implement certification for ATS listings
In a decentralized environment where the issuer of a crypto asset may play no significant continuing role, who bears responsibility for providing accurate disclosures around the asset? There’s a helpful analog from the traditional securities markets here, in the form of Exchange Act Rule 15c2-11, which permits broker-dealers to trade a security when current information for the security is available to investors.
Extending that principle into crypto asset markets, the SEC could permit regulated crypto trading platforms (both exchanges and brokerages) to trade any asset for which the platform can provide investors with accurate, current information. The result would be greater liquidity for such assets across SEC-regulated markets, while simultaneously ensuring that investors are equipped to make informed decisions.
What to do:
Establish a streamlined 15c2-11 certification process for crypto assets listed on alternative trading system (ATS) platforms, providing mandatory disclosures about the assets’ design, purpose, functionality, and risks.
Require exchanges or ATS operators to perform due diligence on crypto assets, including verifying issuer identity as well as important feature and functionality information.
Mandate periodic disclosures to ensure investors receive timely and accurate information. Also, clarify when reporting by an issuer is no longer necessary due to decentralization.
This framework would promote transparency and market integrity while allowing innovation to flourish.
***
By taking the above steps now, the SEC can begin to rotate away from its historic and heavily contested focus on enforcement efforts, and instead add much-needed regulatory guidance. Providing practical solutions for investors, fiduciaries, and financial intermediaries will better balance protecting investors with fostering capital formation and innovation — achieving the SEC’s mission.
A longer version of this post originally appeared on a16zcrypto.com.
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